Circular 07/2025 guiding Decree 178/2024 on funding sources for the implementation of organizational restructuring in Vietnam

Circular 07/2025 guiding Decree 178/2024 on funding sources for the implementation of organizational restructuring in Vietnam​ (Image from the internet)

The Minister of Finance of Vietnam issues Circular 07/2025/TT-BTC dated January 24, 2025, guiding the determination of financial sources, estimating, managing, using, and finalizing the funding for implementing policies stipulated in Decree 178/2024/ND-CP on policies for officials, public employees, employees, and armed forces in reorganizing the political system's organizational apparatus.

Circular 07/2025 guiding Decree 178/2024 on funding sources for the implementation of organizational restructuring in Vietnam

(1) Financial sources for implementing policies for officials; commune-level officials; armed forces and employees (excluding employees in public service providers)

- Agencies and units use the annual regular expenditure budget allocated to pay the following policies:

+ Funding to maintain the previous position's salary level or position allowance until the end of the electoral term or the end of the appointment term for leadership, management officials who cease to hold leadership, management positions or are elected, appointed to lower leadership, management positions due to organizational restructuring as stipulated in Article 11 of Decree 178/2024/ND-CP;

+ Continuing to pay the current salary (including salary allowances) based on the working position before being sent by the agency, organization, or unit for reinforced assignment as stipulated in point a clause 1 and point a clause 2 of Article 12 Decree 178/2024/ND-CP;

+ Policy of salary grade promotion stipulated in point d clause 1, point d clause 2 of Article 12 and clause 1 of Article 13 Decree 178/2024/ND-CP;

+ Payment of bonuses to the subjects stipulated in clause 3 Article 7, point d clause 1, point d clause 2 of Article 12; clause 2 of Article 13 Decree 178/2024/ND-CP.

- The state budget allocates funds to implement the remaining policies not mentioned in clause 1 of this Article in Article 7, Article 8, Article 9, Article 10, Article 12, Article 15 Decree 178/2024/ND-CP as follows:

+ For officials, employees, and armed forces under the management of ministries, ministerial-level agencies, and other central agencies (hereafter referred to as central ministries and agencies), the central budget ensures;

+ For commune-level officials and employees under and managed by local units: The funding for implementing policies is aggregated into the local wage reform needs.

- For agencies, organizations, and units after consolidation and merger that conduct training, and professional development suitable to the working position for officials: Implement according to the provisions in clause 3 Article 16 Decree 178/2024/ND-CP. For this policy's funding in localities, it is aggregated into the local wage reform needs.

(2) Financial sources for implementing policies for public employees and employees in public service providers

- For public service providers that self-finance recurrent and investment expenditures; public service providers that self-finance recurrent expenditures according to Government regulation: Funding for implementing policies as stipulated in point a clause 2 Article 16 Decree 178/2024/ND-CP.

- For public service providers partially covering their own recurrent expenditures: Funding for implementing policies as stipulated in point b clause 2 Article 16 Decree 178/2024/ND-CP, noting that:

+ The total number of employees receiving state budget salaries for determining the necessary state budget funding for implementing Decree 178/2024/ND-CP is the anticipated number of policy beneficiaries within the number of employees receiving salaries from the state budget allocated by the competent authority;

+ For the number of employees beyond the quota of employees receiving salaries from the state budget allocated by competent authorities, employees under labor contract policies: Agencies and units self-arrange from the allocated state budget estimates, revenue from service activities, and other lawful sources to pay the subjects.

- For public service providers with recurrent expenditures guaranteed by the state budget: Funding for implementing policies from state budget allocations according to point c clause 2 Article 16 Decree 178/2024/ND-CP.

- The state budget allocates funds to implement policies for public service providers in clause 2 and clause 3 Article 3 of Circular 07/2025/TT-BTC as follows:

+ Units use the allocated state budget estimate to support annual recurrent expenditures to pay policies stipulated in clause 1 Article 2 of Circular 07/2025/TT-BTC.

+ The state budget allocates funds to implement the remaining policies not covered in point a of this clause in Article 7, Article 8, Article 10, Article 12, Article 15 Decree 178/2024/ND-CP as follows:

++ For public employees and employees in public service providers under the management of ministries, ministerial-level agencies, agencies of the Government of Vietnam, other central agencies, and armed forces (hereafter referred to as central ministries and agencies), the central budget ensures;

++ For public employees and employees in public service providers managed by localities: The funding for implementing policies is aggregated into the local wage reform needs.

- For public service providers after consolidation, merger classified as public service providers partially covering their own recurrent expenditures, public service providers guaranteed recurrent expenditures by the state budget conducting training, and professional development suitable to the working position for public employees: Implement according to the provisions in clause 3 Article 16 Decree 178/2024/ND-CP. For this policy's funding in localities, it is aggregated into the local wage reform needs.

Note:

- In cases where agencies and units have operational funds according to Resolutions, Decisions, and other documents of the competent authority: The source of funds for implementing policies according to the regulations in these Resolutions, Decisions, and other documents of the competent authority (if any).

- For officials who do not meet the age conditions for re-election or re-appointment to positions according to term in the Communist Party of Vietnam, State, political-social organizations, and officials retiring according to their wishes: Execute according to Decree 177/2024/ND-CP dated December 31, 2024, of the Government of Vietnam, stipulating policies for cases of non-re-election, non-reappointment, and officials retiring according to their wishes.

Circular 07/2025/TT-BTC takes effect from January 24, 2025.

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