Empowering educators: financial literacy for teachers

livemint.com:

₹2.5 lakh for pre-school and primary teachers to ₹6 lakh for lecturers. Based on input from teachers on Quora, salary revisions occur sporadically, typically every 3-4 years, with modest annual increases of 5-8% in urban settings. Going by remuneration data, teaching is easily among the lowest paying jobs in India, especially at school level.

The benefits for teachers vary widely, influenced by factors such as location, institution type (private/public), educational level, and years of experience. In general, they grapple with issues related to income fluctuations, job insecurity, insufficient retirement and healthcare benefits, and a lack of structured social security. The demanding nature of the profession, time constraints, limited financial resources and lack of financial literacy, often leads them to overlook their own financial wellbeing.

It is sad that these builders of society go through financial stress as most of them are underprepared for retirement years. The recent announcement from the government regarding mandatory EPFO registration for all CBSE-affiliated schools is a step in the right direction. The new norm is expected to extend EPF benefits to teachers working at schools operational for three years or more.

The NEP 2020 aims to upskill and achieve pay parity for teachers but overlooks essential life skills like financial management. In the quest for financial well-being, teachers, like professionals in other fields, often lack a fundamental understanding of investments and financial planning. It is crucial to comprehend the basics of inflation and the power of compounding for all future planning.