A Major Overhaul of School Management Allowances
In a significant move to streamline administrative processes, Vietnam's Ministry of Education and Training has proposed a comprehensive overhaul of the allowance system for educational managers. Traditionally, allowances for principals and vice-principals were determined based on school rankings, student numbers, and institutional classifications. Under the new draft ordinance, this complex system is set to be replaced by a streamlined, role-based approach that focuses directly on job positions and management responsibilities.
The proposed regulations will apply nationwide across public educational institutions, ranging from preschools and primary schools to secondary, vocational, and higher education establishments. By replacing a fragmented system that has been in place for over 20 years, the ministry aims to bring uniformity, transparency, and administrative efficiency to the education sector.
Shifting from School Ranking to Job Roles and Responsibilities
Under previous regulations, such as Circular 33/2005/TT-BGDĐT, school leaders received allowance coefficients tied strictly to institutional tiers (Tier I, II, or III). However, following recent restructuring, mergers, and consolidations of public schools, this older ranking model became increasingly impractical. The new draft establishes unified allowance levels corresponding directly to the nature of the institution's activities and management roles.
Impact reports indicate that prior to school mergers, the monthly budget for management allowances stood at approximately 215.7 billion VND, which has decreased to around 193.8 billion VND following consolidations. Under the new guidelines, high school principals will receive a standard coefficient of 0.70, while vice-principals will receive 0.55, with similar clear-cut structures established for middle and primary schools.
Reducing Administrative Burden and Operational Costs
The ministry emphasized that the new approach eliminates the shortcomings of classifying schools by class size, which previously required annual reviews of student numbers to determine appropriate allowances. This constant administrative burden will now be lifted, saving local authorities significant time and resources in processing paperwork and resolving grassroots complaints.
Financially, because mergers have naturally reduced the total number of management positions, the ministry projects that the new system will not increase total estimated state budget expenditures. The adjustments can be comfortably balanced within existing recurrent budgets, ensuring strict fiscal responsibility.
Transitional Provisions to Protect Employee Interests
To safeguard managers from sudden drops in income during organizational restructuring, the draft includes robust transitional provisions. If a reassignment results in a lower allowance, the previous higher rate will be maintained until the end of the appointment term or until a new decision is issued. Conversely, if the new rate is higher, the increased allowance will take effect immediately the following month, ensuring fairness and stability across the education workforce.



