The Ministry of Home Affairs has announced that 130 trillion VND (approximately $5.5 billion) will be required to implement policies and support measures for public servants, officials, and employees as part of efforts to streamline the political system's organizational structure.

Comprehensive policies outlined

Minister Pham Thi Thanh Tra presented the draft decree on policies for public servants, officials, and employees during the restructuring process to the government.

The draft, spanning three chapters and 25 articles, provides detailed regulations on policies for various scenarios, including early retirement, extended service, and voluntary resignation for public servants and employees in state agencies.

Among the key measures are:

Early retirement: Compensation calculated based on the number of months remaining until the official retirement age, capped at 60 months.

Severance packages: For employees with mandatory social insurance contributions, severance is calculated based on the duration of contributions, with provisions for rounding fractions of years.

Training and development: Policies for skill enhancement and retention of individuals with exceptional capabilities are emphasized.

The decree also stipulates that individuals eligible for multiple benefits under different regulations can only receive the highest applicable benefit.

Funding breakdown

The Ministry estimates that the 130 trillion VND budget will be sourced from the state budget and revenues from self-financing public units.

Key allocations include:

111 trillion VND for policies related to public servants and officials.
4 trillion VND for employee-related policies.
9 trillion VND for commune-level officials and public servants.
4 trillion VND for social insurance contributions.
2 trillion VND for training and capacity-building programs.

The Ministry highlighted that workforce streamlining will reduce regular expenditures, including state contributions for social insurance, health insurance, and union fees, as well as bonus funds by 10%.

Over five years, the state budget is expected to save approximately 113 trillion VND through these measures.

Targeted application

The policies will apply to individuals within the state-funded workforce, including commune-level public servants. However, employees in self-financing public units must rely on their unit’s revenues and other legitimate sources for policy implementation.

For public units partially supported by the state, a combination of state budget allocations and unit revenues will be utilized.

Public servants and employees eligible for early retirement will receive a lump-sum payment equivalent to their remaining social insurance contributions until retirement age without a reduction in pension benefits.

The draft decree excludes individuals who had already received retirement notifications before the policy’s effective date or those who voluntarily resigned under separate government regulations.

The Ministry aims to finalize and implement the decree by December 31, 2024, following the Politburo’s directive.

Thu Hang