Some New Points on Streamlining Payroll

Subjects Eligible for Staffing Reductions

The decree supplements subjects eligible for staffing reductions, specifically: officials and public employees in leadership and management roles who step down from their positions due to organizational restructuring as decided by the competent authority, voluntarily implement staffing reductions, and have the approval of the directly managing agency or unit.

Those who were already officials and public employees and have been assigned by competent authorities to work at associations allocated staffing and state budget support for salary payments, if they fall into any of the cases specified in points d, e, g, Clause 1, Article 6 of Decree 108/2014/ND-CP.

Decree No. 113/2018/ND-CP also amends the provisions regarding subjects eligible for staffing reductions in Decree No. 108/2014/ND-CP: Those who are officials appointed by competent authorities to participate in management or act as representatives under authorization for the state's capital share in state-funded enterprises that are redundant due to the restructuring of those enterprises may also be subject to staffing reductions.

Calculation of Allowances

Decree 113/2018/ND-CP amends and supplements the specific calculation of allowances: The time point used as the basis for calculating the age eligibility for retirement policies is the first day of the month immediately following the month of birth of the subject; in cases where the subject's dossier does not specify the day or month of birth within the year, January 1 of the year immediately following the year of birth of the subject is used.

The time for calculating allowances is the working time in agencies of the Communist Party, State, political-social organizations, public service providers, state enterprises, and associations that are deemed eligible for social insurance and compulsory social insurance contributions (according to each individual's social insurance book), but have not yet received severance pay or a one-time social insurance benefit or military service benefits. If the allowance calculation time includes odd months, it is rounded as follows: less than 3 months are not counted; from 3 months to 6 months is counted as 1/2 year; from over 6 months to less than 12 months is rounded to 1 year.

When conducting staffing reductions in a manner not compliant with legal regulations, individuals who have benefited from the staffing reduction policies and the agencies, organizations, or units that directly manage these individuals are responsible as follows:

a) Individuals who have benefited from the staffing reduction policies must return the amount received when implementing the staffing reduction policies as regulated. If the individual has passed away during the period of receiving social insurance benefits, they are not required to return the received funds; these funds will be covered by the regular operating expenses of the managing agency, organization, or unit, with no additional funds provided from the state budget.

b) The agencies, organizations, or units directly managing the individual implementing the staffing reduction have the responsibility to: Notify the social insurance agency to stop payment of social insurance benefits for non-compliant staffing reductions; transfer to the social insurance agency the funds paid to the individual during the period of receiving social insurance benefits (pensions, social insurance allowance, funds for health insurance card purchase); pay the individual the difference between the policies they are legally entitled to as per laws on officials and public employees and the policies they received as per social insurance regulations; settle with relevant organizations any benefits public employees and officials are entitled to as regulated; bear the responsibility of recovering the amount of staffing reduction benefits previously given to officials and public employees.

Decree 113/2018/ND-CP takes effect from October 15, 2018.

Source: Supreme People’s Procuracy

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