HCMC – The Ministry of Home Affairs has proposed a budget of VND130 trillion to implement policy measures for civil servants and workers as part of a Government restructuring plan.
The draft decree includes financial support measures for early retirement, extended service, and severance pay for eligible public officials, civil servants, and laborers.
According to the ministry, VND111 trillion will be allocated for officials, VND4 trillion for laborers, and VND9 trillion for commune-level civil servants. Funding will come from the state budget and revenues generated by public service units.
The restructuring initiative aims to reduce regular spending through lower contributions to social insurance, health insurance, and labor unions. Projected savings from the plan could amount to VND113 trillion over five years.
Early retirement benefits will be calculated based on the time remaining until statutory retirement age, capped at 60 months. Severance pay will be determined by years of service with mandatory social insurance contributions, categorized into two groups: contributions of at least five years and contributions under five years.
Employees qualifying for multiple policies will receive the highest benefit under current regulations, as stipulated in the draft decree.
The Government seeks to streamline the workforce while ensuring fiscal discipline and providing adequate social support for those affected by the reforms.
