How is the Seniority Allowance for Teachers Calculated from 2021?

How is the seniority allowance of teachers calculated from 2021? (Illustration Image)

Seniority Allowance for Teachers Not Yet Abolished as of July 1, 2020

According to the spirit of Resolution 27/NQ-TW, one of the contents of wage policy reform is the abolition of seniority allowances for officials and public employees in general and teachers in particular, except for three groups: the military, police, and cryptographic officers.

Specifically: Legalization of this provision in Resolution 27, Article 76 of the Education Law 2019 which officially came into effect from July 1, 2020, also abolished the seniority allowance from policies for teachers. Teachers will be salaried according to their job position and professional work; they will be prioritized to enjoy special occupational allowances as prescribed by the Government of Vietnam.

Note: According to Decree 113/2015/ND-CP, the special occupational allowance is applicable to integrated teachers, vocational educators, and high-skilled vocational instructors teaching in public vocational education institutions.

Thus, if according to the initial plan, from July 1, 2020, those teachers who are currently receiving the seniority allowance will no longer receive this allowance.

However, due to the impact of the Covid-19 pandemic, the reform of wage policies for officials and public employees, armed forces according to Resolution 27 will be postponed. Specifically, at the 13th Conference of the Central Executive Committee of the 12th Communist Party held from October 5 - 9, the Central Executive Committee of the Communist Party agreed with the Government of Vietnam's Party Standing Committee's proposal to implement new wage policies from July 1, 2022 (instead of 2021 as previously planned) for officials and public employees, armed forces, and workers in enterprises according to Resolution 27-NQ/TW.

Therefore, it is expected that from 2021, the seniority allowance for teachers has not been abolished, and teachers will still be paid according to the multiplier applied to the statutory pay rate of 1,490,000 VND/month, as proposed by the Government of Vietnam for not adjusting the statutory pay rate from 1.49 million VND to 1.6 million VND in 2021 at the 10th session of the 14th National Assembly.

Seniority Allowance Regime for Teachers in 2021

Based on Articles 2 and 3 of Decree 54/2011/ND-CP, and guided by Clause 1, Article 2 of Joint Circular 68/2011/TTLT-BGDDT-BNV-BTC-BLDTBXH which stipulates the duration for entitlement and the seniority allowance rate for teachers as follows:

- The duration for entitlement to seniority allowance for teachers is determined by the total duration of:- Teaching and educational periods with mandatory social insurance contributions in public educational institutions;- Teaching and educational periods with mandatory social insurance contributions in non-public educational institutions (for teachers who are currently teaching and educating in public educational institutions but previously taught and educated in non-public educational institutions);

- The seniority allowance rate for teachers is calculated as follows: Teachers who are engaged in teaching and educating in public educational institutions and have completed 5 years (60 months) of teaching and educating, are entitled to a seniority allowance of 5% of their current salary plus leadership allowances and above-frame seniority allowances (if any); from the sixth year onward, for each additional year (12 months), an extra 1% is added.

Example:****Ms. Nguyen Thi An has been teaching and educating at a public kindergarten for 8 years and receives an A2 salary with a pay index of 6.10. Therefore, Ms. An has a calculated seniority duration of 8 years, and the corresponding allowance rate for 8 years is 8%.

Thus, the seniority allowance amount = 6.1 x 1,490,000 x 8% = 727,120 VND.

More details can be found in the article: How is the salary of teachers at all levels affected by the Covid-19 pandemic?

Ty Na

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