Vietnam: What are the instructions for calculating the preferential allowance paid to teachers when statutory pay rate is increased?

What is job-based preferential allowance in Vietnam?

Under point b, clause 8, Article 6 of Decree 204/2004/ND-CP on salary allowances:

Salary allowances

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8. Specific allowances according to profession or job

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b) job-based preferential allowance:

Applicable to officials and public employees whose professions or jobs have working conditions higher than normal and have state preferential policies not yet identified in the payroll.

The allowance consists of 10 levels: 5%, 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45%, and 50% of the current salary plus pleader allowance and extra- seniority allowance(if any).

Thus, the job-based preferential allowance applies to officials and public employees whose professions or jobs have working conditions higher than normal and have state preferential policies not yet identified in the payroll.

What are the instructions for calculating the preferential allowance paid to teachers in Vietnam when the statutory pay rate is increased? (Image from the Internet)

What are the instructions for calculating the preferential allowance paid to teachers in Vietnam when the statutory pay rate is increased?

Under sub-item 2, Section II of Joint Circular 01/2006/TTLT-BGD&DT-BNV-BTC stipulating the allowance levels and calculation method:

ALLOWANCE LEVELS AND CALCULATION METHOD

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2. Calculation method

The preferential allowance received = statutory minimum wage x [salary coefficient according to the current grade and step + leader allowance coefficient (if any) + % (based on coefficient) extra- seniority allowance(if any)] x preferential allowance level.

Under clause 1, Article 2 of Decision 244/2005/QD-TTG stipulating the allowance levels and calculation method as follows:

Allowance Levels and Calculation Method

1. The preferential allowance levels for teachers are specified as follows:

a) The 25% allowance level applies to teachers currently teaching in universities, colleges, academies, training schools of Ministries, equivalent bodies, Government agencies, Communist Party organizations, central political-social organizations, and political schools of provinces, centrally-run cities (excluding teachers teaching in pedagogy schools, pedagogy faculties, and teachers teaching Persons on Marxism-Leninism science, Ho Chi Minh Thought);

b) The 30% allowance level applies to teachers currently teaching in lower secondary schools, upper secondary schools, general technical and career guidance centers, continuing education centers, vocational training centers in plains, cities, townships; professional technical schools, vocational schools; political education centers in districts, towns, and cities under provincial jurisdiction;

c) The 35% allowance level applies to teachers currently teaching in preschools, primary schools in plains, cities, townships; lower secondary schools, upper secondary schools, General technical and career guidance centers, continuing education centers, vocational training centers in mountainous, island, deep-lying, and remote areas;

d) The 40% allowance level applies to teachers currently teaching in pedagogy schools, pedagogy faculties (university, college, secondary level), educational management and training official schools, and teachers teaching political Persons in professional technical schools, vocational schools;

dd) The 45% allowance level applies to teachers currently teaching Marxism-Leninism science, Ho Chi Minh Thought in universities, colleges;

e) The 50% allowance level applies to teachers currently teaching in preschools, primary schools in mountainous, island, deep-lying, and remote areas.

Under clause 2, Article 3 of Decree 73/2024/ND-CP, from July 1, 2024, the statutory pay rate is 2,340,000 VND/month.

Thus, when increasing the statutory pay rate, the formula for calculating the preference allowance paid to teachers is as follows:

The preferential allowance received = 2,340,000 x [salary coefficient according to the current grade and step + leader allowance coefficient (if any) + % (based on coefficient) extra-seniority allowance(if any)] x preferential allowance level

Note: The preferential allowance level is 5%, 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45%, and 50%

What are the eligibility requirements for enjoyment of the job-based preferential allowance by teachers in Vietnam?

Under sub-item 2, Section I of Joint Circular 01/2006/TTLT-BGD&DT-BNV-BTC as amended by Article 2 of Circular 27/2018/TT-BGDDT stipulating the scope, regulations entities, and eligibility requirements for enjoyment:

Scope, regulations entities, and eligibility requirements for enjoyment

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2. Eligibility requirements for enjoyment

a) Persons specified in clause 1 of this Section have been transferred, Gradeed according to Decree 204/2004/ND-CP dated December 14, 2004, of the Government of Vietnam regarding salary policies for officials and public employees and armed forces into the professional education sector Grades (the Grades with the first 2 digits of the Grade code being 15) or professional education sector grades (grades with the initial characters of the Grade code being V.07) are entitled to preference allowances. Specific Persons specified in points b and c of clause 1 of this Section do not necessarily have to be Gradeed into professional education sector Grades or professional education sector grades;

b) Persons specified in clause 1 of this Section are not entitled to preference allowances during the following periods:

- Period for worrking trips, working, or studying abroad receiving 40% of the salary as stipulated in clause 4, Article 8 of Decree 204/2004/ND-CP;

- Period for business trips, studying domestically without participating in teaching for more than 3 consecutive months;

- Period for personal leave without pay for 01 consecutive month or more;

- Period for illness, maternity leave exceeding the duration according to current social insurance regulations;

- Period for suspension from teaching.

Thus, the eligibility requirements for enjoyment of the job-based preferential allowance by teachers in Vietnam are as follows:

- Have been transferred, Gradeed according to Decree 204/2004/ND-CP (the Grades with the first 2 digits of the Grade code being 15) or professional education sector grades (grades with the initial characters of the Grade code being V.07) are entitled to preference allowances.

- Specific Persons do not necessarily have to be Gradeed into professional education sector Grades or professional education sector grades:

- Teachers (including those in probationary periods, and contract periods) on the payroll paid by public educational institutions performing the duties of team supervisors, practice instructors at school workshops, stations, farms, and laboratories.

- Management officials on the payroll paid by public educational institutions, directly teaching enough hours as prescribed by competent authorities.

Note: Not entitled to preference allowances during the following periods:

- Period for working trips, working, or studying abroad receiving 40% of the salary as stipulated in clause 4, Article 8 of Decree 204/2004/ND-CP;

- Period for working trips, studying domestically without participating in teaching for more than 3 consecutive months;

- Period for personal leave without pay for 01 consecutive month or more;

- Period for illness, maternity leave exceeding the duration according to current social insurance regulations;

- Period for suspension from teaching