About VND130 trillion needed for carrying out public staff restructuring
The Ministry of Home Affairs has estimated that about VND130 trillion (US$5.1 billion) is required to implement policies and benefits for officials, civil servants, public employees, and workers as part of the scheme to streamline the political system’s organisational apparatus.
The sum includes VND111 trillion for policy payment for officials; VND4 trillion for workers; VND9 trillion for policies related to commune-level civil servants; VND4 trillion for social insurance contributions; and VND2 trillion for training and development costs, the ministry said in a draft decree it has submitted to the Government.
According to the draft decree, the funding for the scheme will be sourced from State budget and revenues from self-financing public units.
The ministry explained that the staff streamlining process will reduce ongoing regular expenditures and lower the State budget’s contribution to social insurance, health insurance, and union fees for officials, civil servants, and public employees who retire. This will result in a 22% reduction in these costs, along with a 10% cut in the bonus fund.
The Government expects to save around VND113 trillion for the State budget over the next five years.
The new policies apply to officials, civil servants, management staff, and specialist civil servants, as well as employees working under fixed-term labour contracts according to labour laws before January 15, 2019.
Employees with fixed-term contracts will be treated the same as civil servants under these policies. However, those who have already been notified of their retirement before the official decision on restructuring takes effect will not be covered by these policies.
