CIRCULAR

ON GUIDELINES FOR FORMULATION, APPRAISAL, AND PROMULGATION OF ECONOMIC AND TECHNICAL NORMS IN EDUCATION AND TRAINING AND METHODS USED TO DETERMINE EDUCATION SERVICE CHARGES

Pursuant to the Government’s Decree No. 69/2017/ND-CP dated May 25, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Education and Training;

Pursuant to the Government’s Decree No. 16/2015/ND-CP dated February 14, 2015 on budgetary autonomy of public sector entities;

Pursuant to Decree No. 86/2015/ND-CP dated October 2, 2015 on mechanism for collection and management of tuition fees applicable to educational institutions in the national education system and policies on tuition fee exemption and reduction and financial support from academic year 2015 - 2016 to 2020 - 2021; Decree No. 145/2018/ND-CP dated October 16, 2018 on amendments to Decree No. 86/2015/ND-CP;

At the proposal of the Director of the Department of Planning and Finance;

The Minister of Education and Training promulgates a Circular on guidelines for formulation, appraisal, and promulgation of economic and technical norms in education and training and methods used to determine prices for education and training services.

Chapter I

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Article 1. Scope and regulated entities

1. This Circular provides guidelines for formulation, appraisal, and promulgation of economic and technical norms in education and training (hereinafter referred to as education) and methods used to determine prices of education and training services (hereinafter referred to as education services prices).

2. This Circular applies to:

a) Public educational institutions under the national education system, include preschool education institutions, compulsory education institutions, higher education institutions, continuing education centers, pedagogical colleges, post-secondary pedagogical schools (hereinafter referred to as educational institutions) and relevant organizations and individuals;

b) Ministries, ministerial-level agencies, People’s Committees of provinces and central-affiliated cities (hereinafter referred to as provinces) that formulate, appraise, and promulgate economic and technical norms for academic disciplines, and education and training services that the State put them in place for bidding, ordering, and assign tasks from the State budget;

c) Other entities that engage in bidding, ordering, and assign tasks of education and training services from the State budget.

3. Public educational institutions that are affiliated to the People’s armed forces shall comply with special regulations of each field and relevant regulations of law.

Article 2. Definitions

For the purposes of this Circular, the terms below are construed as follows:

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2. “labor norm” refers to the amount of labor by professions and specialties required to provide a learner with a complete education that meets the criteria and standards promulgated by competent authorities

3. “equipment use norm” refers to the amount of each item of machinery and equipment consumed to provide a learner with a complete education that meets the criteria and standards promulgated by competent authorities.

4. “supply consumption norm” refers to the amount of each item of materials and fuels consumed to provide a learner with a complete education that meets the criteria and standards promulgated by competent authorities.

5. “education services charges” refer to all costs and funds that directly or indirectly support education and training activities, including salary costs, supply costs, administrative costs, depreciation, and amortization costs (investment accumulation), and other costs and funds.

Article 3. Objectives for formulation and promulgation of economic and technical norms

1. Economic and technical norms are the basis for competent authorities to formulate and approve unit prices and prices of education services, budget estimates for education and training services that are funded by the state budget and economic management in education and training services as per the law.

2. Public educational institutions shall formulate, appraise, and promulgate economic and technical norms to support the professional activities of educational institutions; formulate prices of education services provided by the educational institutions.

Chapter II

FORMULATION, APPRAISAL, AND PROMULGATION OF ECONOMIC AND TECHNICAL NORMS IN EDUCATION

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1. Economic and technical norms at ministerial level refer to economic and technical norms that are formulated, appraised, and promulgated by the Ministries and ministerial-level agencies for higher education services and applied to educational institutions under authority of these Ministries and ministerial-level agencies.

2. Economic and technical norms at provincial level refer to economic and technical norms that are formulated, appraised, and promulgated by People’s Committees of provinces for services of preschool education institutions, compulsory education institutions, pedagogical colleges, post-secondary pedagogical schools, and continuing education centers, and applied to provincial educational institutions, and agencies.

3. Economic and technical norms at grassroots level refer to economic and technical norms that are formulated, appraised, and promulgated by educational institutions to support their professional activities.

Article 5. Bases for formulating economic and technical norms

1. Regulations on educational programs, training programs, body of knowledge standard, learner’s outcomes corresponding to each education level.

2. Regulations on charter of preschools; charter of elementary schools; charter of lower secondary schools, upper secondary schools, and secondary schools; post-secondary pedagogical schools, pedagogical colleges, universities; working policies of teachers, administrative staff, service staff; norms of teaching and learning equipment.

3. Actual conditions of facilities of educational institutions, including construction works, plants, machinery, equipment, textbooks, documents.

4. Regulations on standards and norms of working equipment and facilities of regulatory agencies, officials, and public employees.

5. Annual statistics and relevant documents.

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1. Standardized approach: Determine consumption norm for each finished work based on applicable standards and regulations in order to formulate economic and technical norms.

2. Calculations according to the actual delivery of training programs: Calculate and determine each element constituting the norm based on actual delivery of training programs at educational institutions. Guidance on calculating the training cost norm for a full-time university class according to given training program is provided in the Appendix hereto.

Article 7. Details of economic and technical norms

Either one or all methods specified in Article 6 of this Circular will apply to formulate sub-norms as follows:

1. Labor norm

Labor norm = direct labor norm (theoretical teaching; practical guidance; instructions for essays, theses, dissertations, etc.) + Indirect labor norm (administrative cost; service cost, etc.).

Indirect labor norm is calculated as a percentage of direct labor.

2. Equipment use norm

Equipment use norm = Initial equipment price x Percentage of depreciation (as per prescribed regulations).

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3. Supply consumption norm

refers to the consumption of materials and fuels, which is determined by type, quantity/volume.

Article 8. Formulation, appraisal, and promulgation of economic and technical norms

1. Pursuant to Article 3 hereof, the Ministries, ministerial-level agencies, People’s Committees of provinces, and educational institutions shall establish a presiding agency or assign presiding tasks to a specialized agency to formulate economic and technical norms under their management, using the methods and details prescribed in Articles 6 and 7 hereof.

2. Based on practical conditions on human resources, organizational apparatus, and assigned tasks, the Ministries, ministerial-level agencies, People’s Committees of provinces, and educational institutions shall appraise, or assign the presiding agency to appraise, economic and technical norms under their management. After these economic and technical norms are appraised, they shall be submitted to the Ministers, Heads of ministerial-level agencies, Presidents of People’s Committees of provinces, heads of educational institutions for promulgation.

3. In case the promulgated economic and technical norms are no longer suitable with the new conditions and technical and quality standards prescribed by competent authorities, the Ministries, ministerial-level agencies, People’s Committees of provinces, and educational institutions shall amend these economic-technical norms according to the procedures specified in Clauses 1 and 2 of this Article to ensure compliance with the regulations of law.

Chapter III

METHODS OF DETERMINING EDUCATION SERVICES PRICES

Article 9. Principles of determining education services prices

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2. The education services prices are differentiated by education level, academic discipline group and training program.

3. The education services prices are adjusted when their price-forming factors change.

Article 10. Determination of education services prices

1. Education services prices are determined based on the following formula:

Education services price

=

Salary costs

+

Supply costs

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Administrative costs

+

Depreciation and amortization costs (investment accumulation)

+

Other costs and funds

2. Salary costs

a) Salary costs include amounts payable to teachers, lecturers, administrative officers, and employees directly involved in the provision of education and training services, including salaries, wages and salary-related allowances, contributions of social insurance and health insurance, unemployment insurance, trade union fees and other costs that must be paid in accordance with current laws.

Salary costs

=

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x

Salary unit price or wage cost

- Labor norm: To be determined as prescribed in clause 1, Article 7 hereof;

- Salary unit price is determined based on applicable law on salaries; wage cost is the cost to be paid to an employee under an employment contract or collective bargaining agreement.

b) Based on actual conditions and requirements, the salary costs shall be determined based on the salary fund or the revenue source of the educational institution to ensure their effective operation and must be detailed in their internal expenditure regulations.

2. Supply costs are costs used for teaching, learning, practice, laboratories, scientific researches; and service provision, including Costs of stationery, devices, electricity, water, materials, fuels, and other costs which are determined based on the consumption of supplies and unit price of supplies:

a) The consumption of supplies shall be determined on the basis of economic and technical norms as follows:

- For products with existing economic and technical norms prescribed by competent authorities, these economic-technical norms shall apply.

- For products that lack economic and technical norms prescribed by competent authorities, the Principals or Heads of institutions/agencies shall promulgate their own economic and technical norms and be responsible for applying those economic and technical norms in an accurate, saving, and efficient manner.

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Unit price of supplies used to calculate education services prices is a price inclusive of VAT and is determined in accordance with the standards, type, and quality of those supplies. In specific:

- Regarding supplies priced by the State: use the prices stipulated by the State (+) reasonable circulation costs (if any);

- Regarding outsourced supplies:

If there are no sufficient documents and invoices as prescribed, use the lowest price, which is be calculated from information sources such as market prices provided by specialized organizations or quotations of manufacturers, prices of suppliers;

If there are sufficient documents and invoices as prescribed, use the buying prices stated in the sales invoices; or successful bids, hammer prices, quoted prices (+) reasonable costs to deliver the supplies to the educational institution (if any);

- Regarding supplies which are directly imported and put into use: use the cost price as prescribed by competent authorities (+) reasonable costs to deliver the supplies to the educational institution (if any);

- Regarding homemade supplies:

 use the ex-warehouse prices (+) actual costs to deliver the supplies to the educational institution (if any);

- Regarding third-party processed supplies: use the ex-warehouse prices (+) processing cost (+) reasonable costs to deliver the supplies to the educational institution (if any);

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3. Administrative costs refer to costs for serving operation of departments and divisions of the administration in the educational institution, including:

a) Enrollment costs:

b) Costs of services provided by third parties to support the administration; expenses associated with purchase and use of technical materials, patents, etc. (not qualified as fixed assets), which are gradually recorded into administrative costs; rents of fixed assets; payments to contractors (if any);

c) Other monetary expenses under general administration, in addition to the above-mentioned costs, such as: conferences, guest receptions, per diem, travelling costs, expenditures for female employees, researches and training, associations membership fees, and other reasonable costs;

Administrative costs are determined on the basis of average statistics of specific administrative costs in the 3 consecutive years (according to the State budget entries) of the educational institution, to ensure their effective operation. Maximum administration cost is 10% of total costs constituting education services prices and must be detailed in the educational institution’s internal spending regulations.

4. Costs of depreciation or amortization of fixed assets means the costs of depreciation or amortization of houses, structures, machinery and equipment and other fixed assets used in the provision of education and training services calculated according to regulations of the Ministry of Finance and the roadmap to record the costs of depreciation or amortization of fixed assets to the education services prices shall be prescribed by competent authorities.

5. Other costs include business license taxes, land rents, and other fees and charges

Chapter IV

IMPLEMENTATION

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1. Formulate and promulgate economic and technical norms in education within their authority as per this Circular.

2. Make regular amendments to economic and technical norms in education within their authority to ensure the economic and technical norms comply with actual conditions and applicable regulations. Guide affiliated educational institutions to formulate economic and technical norms and appraise them as per this Circular based on the economic and technical norms of their field.

3. Monitor and send periodic reports on implementation of economic and technical norms in affiliated educational institutions to the Ministry of Education and Training before every December 20.

Article 12. Responsibilities of educational institutions

1. Formulate and promulgate their own economic and technical norms based on Article 7 hereof; and economic and technical norms of their superior bodies.

2. Send periodic reports on implementation of economic and technical norms to their superior bodies and local education authorities before every December 15.

Article 13. Funding for formulation, appraisal, and promulgation of economic and technical norms and determination of education services prices

Education agencies and educational institutions shall use their sources of funds to formulate, appraise, and promulgate economic and technical norms and determine education services prices as per the Law on State Budget and guiding documents.

Article 14. Entry in force

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2. The Chief Officers, Director of Department of Planning and Finance, Heads of units affiliated to the Ministry of Education and Training; Directors of Departments of Education and Training; Directors of universities, institutes; Principals of senior colleges; Principals of pedagogical colleges; Principals of pedagogical post-secondary schools, and relevant entities shall implement this Circular./.

PP. MINISTER
DEPUTY MINISTER




Le Hai An

APPENDIX

EXAMPLE OF CALCULATING THE TRAINING COST NORM FOR A FULL-TIME UNIVERSITY CLASS ACCORDING TO GIVEN TRAINING PROGRAM
(Enclosed with Circular 14/2019/TT-BGDDT dated August 30, 2019 of the Ministry of Education and Training)

Section

Expenditures

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Notes to method used

Percentage
(%)

A

TOTAL TRAINING COST

Total training sub-costs: = I + II + III

I

DIRECT COSTS

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62%

1

Initial expenditures to offer academic disciplines, offer classes, design curricula/syllabuses, subject outlines, compilation of textbooks and materials, enrollment, and enrollment promotion

Including the expenses associated with designing curricula/syllabuses, subject outlines, compilation of textbooks and materials; initial expenditures to offer academic disciplines, offer classes; enrollment and enrollment promotion

1 = 1.1+ 1.2 + 1.3

14%

1.1

Expenditures on designing curricula/syllabuses, subject outlines, compilation of textbooks and materials (subject to annual amendments)

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- Design curricula/syllabuses: Royalties; counter-argument; Acceptance Testing Council; processing of application for acceptance; etc.

- Designing of subject outlines: Royalties; counter-argument; Acceptance Testing Council; processing of application for acceptance; etc.

- Textbooks and materials: Royalties; counter-argument; Acceptance Testing Council; processing of application for acceptance; etc.

= G% x Total training cost. Up to 5%

3%

1.2

Other costs associated with offering academic disciplines

Surveying social needs, applying for offering academic disciplines, business fees, and other expenditures on offering academic discipline, which accounts for H% of total costs (actual costs)

= H% x Total training cost. Up to 2%

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1.3

Expenditures on enrollment and enrollment promotion

Accounting for 1% of total training cost

= 1% x Total training cost. Up to 10%.

10%

2

Salaries and wages for teaching, training and administrative departments directly support and serve the class in lecture halls for 1 academic year

Identify university lecturers with a Master's degree or higher, with 20 years of work, class allowance in the field I

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a

Average salary and wage of 1 lecturer who teaches for a training program for 1 year

- Base salary excluding salary payables (salary coefficient = J)

- Class allowance, equal to K% of base salary (E.g. pedagogy is 40%)

- Seniority allowance, equal to L% of base salary

- Insurance contributions are based on salary, of which the educational institution contributes 21.5%

- the trade union contributes 2%

Base salary: = J x Base salary x 12 (months)

- Class allowance: = K x J x Base salary x 12 (months)

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- Insurance benefits 21.5% = 21.5% x (Base salary + Seniority allowance)

- Trade union contribution: 2% x (Base salary + Seniority allowance)

b

Average unit price of 1 theory lesson

- Circular No. 47/2014/TT-BGDDT dated December 31, 2014 of the Minister of Education and Training on working policies for lecturers stipulates that the labor norm of lecturers is 1,760 normal hours/school year. This includes 270 standard teaching hours (theoretical hours), the rest are scientific research hours, study hours and other professional activities prescribed by the Head of the educational institution. Pursuant to Joint Circular No. 06/2011/TTLT-BNV-BGDDT, the conversion of scientific research hours and other professional activities is determined as follows: 270 standard teaching hours = 900 normal hours, thus 1,760 mechanical hours = 528 standard periods. In fact, in certain subject groups, hours are exempted or reduced due to holding managerial positions, attending courses, taking maternity leave, raising children under 36 months, and other exemption and reduction policies. So, the average exemption and reduction is M%.  The number of periods remaining to be covered according to the norm is 528 x (1-M%).  Unit price for 1 theory class = annual average salary, wage of lecturer/ [528 x (1-M%)]

= Annual average salary/wage/Standard number of standard periods [528 x (1-) M%)];

2.1

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The cost for teaching average number of theoretical periods per year according to the training program of the academic discipline

= Average number of theoretical credits per year (according to the training program) x 16.5 ( Coefficient to convert credits into standard periods) x Average unit price of 1 theoretical teaching period

2.2

Cost for teaching practice, experiment, internship in 1 academic year

The cost for teaching practice, experiment, internship in the academic discipline i has a cost coefficient equal to F times compared to theory period (due to the costs incurred in: buying materials, samples, tools, personal protection equipment in the laboratories, perishable things, and the number of teachers in a class increases because a theory class has to divided into several small groups for practice and experiment (from 5 to 10 students in a group), per diem for lecturers, expenses for internships, practice, etc.)

* (detailed in the notes)

= Average number of practice and experiment credits per year x 16.5 (coefficient to convert credits to standard periods) x Average unit price of 1 theory lesson x F (F is the coefficient cost between teaching practice and experiment and teaching theory)

Notes: Number of credits according to the training program = number of theoretical credits + number of practical and experiment credits

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2.3

Salaries and wages for the administrative staff and services staff who support at the lecture halls (cleaning, opening, and closing classrooms, laboratories, etc....)

Including administrative staff and services staff who support at the lecture halls: staff who clean, open and close classrooms, and serve drinking water in the lecture halls. Their salaries and wages are equal to k% of salaries and wages of those who provide teaching and training

= k% x Salaries and wages for those who provide teaching and training. Up to 5%

3

Costs for conducting invigilation and marking

Each full-course student must take the final exam of units of study and the final exam for experimental credits

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3.1

Invigilation allowance

Invigilation allowance in a class/year

Annual invigilation allowance/ class = Standard invigilation allowance paid to 1 invigilator of educational institution x 2 invigilators of an exam room x Number of exam rooms x average number of units of study in a year/class

* In case the number of students in a class is > 30, an additional exam room will be added (each exam room has an average of 30 students).

3.2

Exam marking allowance

Marking allowance in a class/year

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* Average number of units of study per year = Number of full-course units of study/number of years of training

4

Expenditures on scholarships and scientific research of educational institutions and students; school opening and closing ceremonies

8%

4.1

Minimum study incentive scholarships according to Circular No. 31/2013/TT-BGDDT dated August 1, 2013 of the Ministry of Education and Training and tuition fees according to Decree No. 86/2015/ND-CP dated October 2, 2015 of the Government.

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= P% x Total tuition fees collected under Decree 86. At least 8%

4.2

Expenses for students and learners for scientific research activities according to Decree No. 99/2014/ND-CP dated October 25, 2014 of the Government. Funding comes from tuition revenue.

The rate of deduction for scientific research is Q % of total tuition fees collected/year

= Q% x Total tuition fees collected under Decree 86. At least 3%

4.3

Funding for investment in developing potential and encouraging science and technology activities according to Decree No. 99/2014/ND-CP. Proportion extracted from legal revenue sources.

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= S% x Total tuition fees collected under Decree 86. At least 5%

4.4

Expenses for opening and closing ceremonies for handing out diplomas (including blanks and diploma printing)

According to actual expenses for halls, stages, guests, delegates, drinks, entertainment, bachelor's uniforms, other costs. Each student costs an average of R thousand VND/course

=R : (divided) number of years of training x Number of students in class

5

Depreciation costs of fixed assets directly serving teaching and training

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= T% x Total training cost. Up to 5%

5%

II

INDIRECT COSTS

25%

1

Regular expenses such as: electricity, domestic water, drinking water, stationery, communications, press and media, per diem, reception, ceremonies, other professional activities, conferences , seminars, management costs, etc.

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= U% x Total training cost. Up to 10%

10%

2

Salaries and wages for management, administrative and service staff (excluding departments directly at the lecture halls where students study)

Salaries and wages for management and administrative staff who provide indirect support and service account for about V% compared to teaching and training staff, which is consistent with current practice

= V% x Total training cost. Up to 25%.

8%

3

Depreciation costs for fixed assets (offices of administrative block, faculty offices, subject groups, other shared fixed assets)

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= X% x Total training cost. Up to 5%

5%

4

Other expenses (such as: activities of the Party, Union, Youth Union, expenses for female employees, movement activities of students and staff,, other expenses, ..)

Other expenses (such as: activities of the Party, Union, Youth Union, expenses for female employees, movement activities of students and staff,, other expenses, ..)  which account for Y% of total cost.

= Y% x Total training cost. Up to 3%

2%

III

Additional income, holiday benefits; setting aside funds: bonus and welfare, provision for income stabilization

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13%

1

Extra income, holiday benefits

Extra income, holiday benefits account for Z% of total cost

Z% x Total training costs (up to 5%)

3%

2

Setting aside funds: bonus and welfare, provision for income stabilization; Investment and development fund

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= W% x Total training cost. Up to 15%.

10%

B

TUITION FEES COLLECTED UNDER DECREE NO. 86/2015/ND-CP

Under Decree No. 86/2015/ND-CP

Number of students/class x Standard tuition fee according to Decree 86

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Notes:

- Conver 1 credit = 16.5 standard teaching periods of theory, because 1 credit period is 50 minutes (According to Decision No. 17/VBHN-BGDDT dated May 15, 2014), but the standard teaching periods of 1 theory period in class is calculated according to the annual class (each period is 45 minutes) according to Circular No. 47/2014/TT-BGDDT dated December 31, 2014.

- The standard class size is 40 students, according to Circular No. 47/2014/TT-BGDDT dated December 31, 2014, in specific: 1 (One) theory lesson in class for 40 students is equal to 1,0 standard hour.

Thông tư 14/2019/TT-BGDĐT hướng dẫn xây dựng, thẩm định, ban hành định mức kinh tế - kỹ thuật và phương pháp xây dựng giá dịch vụ giáo dục đào tạo áp dụng trong lĩnh vực giáo dục đào tạo do Bộ trưởng Bộ Giáo dục và Đào tạo ban hành