Funding for the implementation of the policy of downsizing in public service units in Vietnam as of April 15, 2024

Funding for the implementation of the policy of downsizing in public service units in Vietnam as of April 15, 2024 (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On February 23, 2024, the Minister of Finance issued Circular 13/2024/TT-BTC guiding the determination of funding sources, budgeting, management, utilization, and settlement of funds for the implementation of the policy of downsizing in Vietnam.

Funding for the implementation of the policy of downsizing in public service units in Vietnam as of April 15, 2024

Funding for the implementation of the policy of downsizing in public service units from April 15, 2024, shall be as follows:

1. For public service units that self-fund regular and investment expenditures, funding for the implementation of the policy of downsizing shall be sourced from the unit's operational revenue as regulated in Article 11, Clause 1 of Decree 29/2023/ND-CP.

2. For public service units partially self-funded and public service units funded by the state budget for regular expenditures:

- Units with budgetary support for regular expenditures allocated annually (in addition to the state budget funds allocated for the implementation of the policy of downsizing as regulated in this clause) and operational revenue as regulated in Article 11, Clauses 1 and 2 of Decree 29/2023/ND-CP shall be used to cover the following:

+ One-time allowance equivalent to three months' salary as regulated in point a, Clause 1 of Article 6, point a, Clause 1, and point c, Clause 2 of Article 7 of Decree 29/2023/ND-CP.

+ Continuation of full salary and payment of social insurance, health insurance, and unemployment insurance contributions (if applicable) during the training period and provision of training expense support for eligible individuals as regulated in points a and b of Clause 2 of Article 7 of Decree 29/2023/ND-CP.

- The state budget shall allocate funds along with the unit's operational revenue to implement the remaining provisions (excluding provisions at this point) in Article 5, Article 6, Article 7, and Article 9 of Decree 29/2023/ND-CP, according to the following principles:

 + For civil servants and employees working under labor contracts as specified in Clause 2 of Article 2 of Decree 29/2023/ND-CP in public service units under the management of central ministries, agencies funded and budgeted in the annual budget of public service units by the central budget.

+ For civil servants and employees working under labor contracts as specified in Clause 2 of Article 2 of Decree 29/2023/ND-CP in public service units under the management of local authorities, funded by the local budget as per the prevailing state budget decentralization regulations.

Refer to Circular 13/2024/TT-BTC for further details, which will come into effect on April 15, 2024.

Circular 31/2019/TT-BTC guiding the determination of funding sources, budgeting, management, utilization, and settlement of funds for the implementation of the policy of downsizing, and Circular 117/2021/TT-BTC amending and supplementing certain provisions of Circular 31/2019/TT-BTC will no longer be applicable starting from the effective date of Circular 13/2024/TT-BTC.

When the referenced documents applicable to Circular 13/2024/TT-BTC are amended, supplemented, or replaced with new documents, the provisions of the amended, supplemented, or replaced documents shall apply.

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