HCM City People's Committee will spend VND380bn (USD16.7m) as bonuses to encourage 1,062 officials to retire early in order to cut staff numbers in the run-up to 2021.

HCM City People's Committee will spend VND380bn (USD16.7m) to encourage 1,062 officials to retire early

HCM City People's Council has approved the decision during a meeting on December 7 in accordance with Politburo Resolution 39 and Government Decree 108 about reducing the staff in order to improve the performance of state agencies.

The bonus is also a way to recognise their contribution to the city's development. The city authorities proposed to give bonuses to officials at government and party agencies, socio-political organisations of the city and districts, standing committees and party committees. Early retirees will be given support based on the years they have left until their full retirement ages.

Each year without earning will be given a bonus worth three months' salary. The city authorities will also give an additional bonus that worth five months' salary for the first 20 years of social insurance contributions and half a month of salary worth for every year after.

The authorities will still support those who are on the list of employee downsizing but do not meet requirements for early retirement such as having less than 20 years of social insurance contribution or less than 15 years of doing hard or hazardous jobs. They will be given a bonus that worth three months' salary to help them find jobs, and another bonus that worth one and a half months' salary for every year they contributed to the social security system.

The fund will come from the city's budget. Agencies that have been given financial autonomy will have to pay for their own employees.

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