Due to the impact of the Covid-19 pandemic, the seniority allowance for teachers has not yet been abolished. Therefore, what is the formula for calculating seniority allowance paid to teachers in Vietnam from 2021?
Vietnam: What is the formula for calculating seniority allowance paid to teachers from 2021? (Illustration Image)
Seniority allowance for teachers in Vietnam remains as of July 1, 2020
According to the spirit of Resolution 27/NQ-TW, one of the contents of salary policy reform is the abolition of seniority allowances for Vietnamese officials and public employees in general and teachers in particular, except for three groups: the military, police, and cipher officers.
Specifying this provision in Resolution 27, Article 76 of the Education Law 2019 (effective on July 1, 2020) also abolished the seniority allowance for teachers. Teachers will be salaried according to their job position and professional work; they will be prioritized to enjoy special allowances as prescribed by the Government of Vietnam.
Note: According to Decree 113/2015/ND-CP, the special allowance applies to integrated teachers, vocational educators, and high-skilled vocational instructors teaching in public vocational education and training institutions.
Thus, according to the initial plan, from July 1, 2020, teachers on seniority allowance will no longer receive this allowance.
However, due to the impact of the COVID-19 pandemic, the salary policy reform for officials and public employees, and armed forces according to Resolution 27 will be postponed. At the 13th meeting of the Central Executive Committee of the 12th Communist Party of Vietnam held from October 5 - 9, the Central Executive Committee of the Communist Party of Vietnam agreed with the Government of Vietnam's Party Personnel Committee's proposal to implement new salary policies from July 1, 2022 (instead of 2021 as previously planned) for officials and public employees, armed forces, and employees in enterprises according to Resolution 27-NQ/TW.
Therefore, it is expected that from 2021, the seniority allowance for teachers will not be 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 failure to increase the statutory pay rate from 1.49 million VND to 1.6 million VND in 2021 at the 10th meeting of the 14th National Assembly.
Seniority allowance for teachers in Vietnam in 2021
Under 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 on the period for entitlement and the seniority allowance amount for teachers in Vietnam:
- The period 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 leader allowances and extra-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 preschool for 8 years and receives an A2 salary with a salary coefficient of 6.10. Therefore, Ms. An's period for entitlement to seniority allowance is 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: What are the effects of COVID-19 to the salary of teachers at all levels in Vietnam/. by the Covid-19 pandemic?
Ty Na