Following Conclusion 183 of the Politburo, the government required ministries, branches and localities to complete staff streamlining under Decree 178 by August 31. From this date, the lump-sum subsidy policy under Decree 178 officially ended.

Starting September 1, public officials and employees retiring early or leaving due to staff streamlining will transition to the policies outlined in Decree 154 on staff streamlining.

The new policy eliminates large one-time allowances, focusing instead on supporting early retirees and those leaving through a planned process. They will receive full pensions without percentage reductions, along with additional subsidies based on years of service and job specifics.

This is considered a reasonable adjustment, aiming for fairness and long-term stability while reducing financial pressure on the state budget and ensuring social security.

Transition to a more sustainable and practical policy

Decree 154 clearly outlines five groups of civil servants and public employees eligible for benefits and policies: redundant public officials, employees, and workers due to organizational restructuring; leaders and managers who step down from leadership roles or are appointed/elected to positions with lower salaries or allowances due to restructuring; individuals voluntarily streamlining and approved by their managing agency, organization, or unit. 

Redundant personnel due to organizational reviews and restructuring are also eligible for benefits under Decree 154.

The decree specifies policies for each group, including early retirement. Public officials and employees retiring early no longer receive the one-time retirement subsidy as under Decree 178 but will still receive full pensions (without percentage reductions) if they retire according to an appropriate timeline and have sufficient social insurance contributions for pension eligibility.

Support levels are calculated based on factors such as years of service, working conditions, and the nature of the job. Early retirees are classified into four groups, each with specific support packages.

The decree also includes policies for those transitioning to organizations not funded by the regular state budget, those voluntarily resigning, and part-time officials at the commune, hamlet, or neighborhood level.

This policy encourages voluntary, well-planned retirement, avoids mass resignations, ensures social security, reduces budgetary pressure, and helps maintain a team of experienced, capable civil servants.

Under the spirit of Decree 154, early retirements or resignations must be carefully considered, with clear replacement and succession plans. Individuals with sufficient capacity and credibility will continue to be retained, avoiding a one-size-fits-all approach or mass retirements.

Streamlining is not a one-time “major surgery” but a continuous process of adaptation and refinement. Ending lump-sum support does not mean cutting benefits; it reflects a shift toward a more sustainable and practical policy framework aligned with current financial conditions, while still ensuring full rights for civil servants subject to streamlining.

Vu Diep