Circular No. 07/2025/TT-BTC providing guidance on Decree No. 178 regarding organizational restructuring in Vietnam

Circular No. 07/2025/TT-BTC providing guidance on Decree No. 178 regarding organizational restructuring in Vietnam​ (Image from the Internet)

The Minister of Finance issues Circular 07/2025/TT-BTC dated January 24, 2025, providing guidance on determining funding sources and estimating, managing, using and settling funds to implement the policies stipulated in Decree 178/2024/ND-CP regarding policies for officials and public employees, workers, and the armed forces in implementing the organization of the administrative apparatus of the political system.

Circular No. 07/2025/TT-BTC providing guidance on Decree No. 178 regarding organizational restructuring in Vietnam

Circular 07/2025/TT-BTC prescribes the determination of funding sources and the preparation, management, usage, and settlement of funds for implementing policies stipulated in Decree 178/2024/ND-CP, including policies for officials and public employees, workers, and the armed forces in the reorganization of the administrative apparatus of the political system.

Funding sources for policy implementation concerning public employees and workers in public service providers while reorganizing the administrative apparatus of the political system are as follows:

- For public service providers self-financing recurrent and investment expenditures; public service providers self-financing recurrent expenditures as prescribed by the Government of Vietnam: The funds for implementing policies as stipulated in point a, clause 2, Article 16 of Decree 178/2024/ND-CP.

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

+ The total number of persons receiving salaries from the state budget to determine the funding needs provided by the state budget for implementing Decree 178/2024/ND-CP is the number of persons projected to be covered within the scope of the number of employees receiving salaries from the state budget as assigned by the competent authority;

+ For the number of persons outside the target number of employees receiving salaries from the state budget as assigned by the competent authority, employees under labor contracts: Agencies and units self-arrange from the state budget estimates assigned, revenues from service activities, and other lawful revenues to pay for these subjects.

- For public service providers whose recurrent expenditures are fully covered by the state budget: Funds for implementing policies from the state budget according to the provisions in point c, clause 2, Article 16 of Decree 178/2024/ND-CP.

- The state budget allocates funds for implementing policies concerning public service providers in clauses 2 and 3, Article 3 of Circular 07/2025/TT-BTC as follows:

+ Units using state budget estimates support recurrent expenditures annually allocated to pay for policies prescribed in clause 1, Article 2 of Circular 07/2025/TT-BTC.

+ The state budget allocates funds to implement the remaining policies (beyond the policies in point a, clause 3, Article 3 of Circular 07/2025/TT-BTC) in Articles 7, 8, 10, 12, 15 of Decree 178/2024/ND-CP as follows:

++ For public employees and workers in public service providers under the management of ministries, ministerial-level agencies, government agencies, and other central agencies (hereinafter referred to as central ministries and agencies), the central budget ensures this;

++ For public employees and workers in public service providers managed locally: Funds to implement policies are integrated into the locality’s wage reform needs.

- For public service providers post-merger and integration categorized as public service providers partially covering their own recurrent expenditures, public service providers with recurrent expenditures fully covered by the state budget conducting training and professional refinement suitable for job positions concerning public employees: Implement according to the provisions in clause 3, Article 16 of Decree 178/2024/ND-CP. For funds implementing these policies locally, they are integrated into the locality's wage reform needs.

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

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