Update of Circular 1/2025 providing guidance on policies for officials in the implementation of organizational restructuring of the political system in Vietnam

Update of Circular 1/2025 providing guidance on policies for officials in the implementation of organizational restructuring of the political system in Vietnam

This Circular provides guidance on the implementation of policies for officials, public employees, and employees in agencies, organizations, and units as stipulated in Article 1 of Decree 178/2024/ND-CP during the process of organizational and administrative restructuring at various levels within the political system, including: determining the timing and monthly salary for policy benefits, calculating policy benefits for early retirement, calculating severance benefits for officials and commune-level officials, calculating severance benefits for public employees, employees, and implementing training and capacity building policies for officials and public employees after restructuring.

Subjects of application: officials and public employees; commune-level officials and employees as stipulated in points a, b, and c, Clause 1, Article 2 of Decree 178/2024/ND-CP, including:

- Leaders, managers who are officials and public employees;

- Commune-level officials;

- Employees under labor contract policies as per labor law before January 15, 2019, and those working under labor contract policies applied similar to officials.

Update of Circular 1/2025 providing guidance on policies for officials in the implementation of organizational restructuring of the political system in Vietnam​ (Image from the internet)

Methods of determining the timing and monthly salary for calculating policy benefits in Vietnam

The Circular provides specific guidance on determining the timing and monthly salary for calculating policy benefits as follows:

1. The timing for decision-making on organizational restructuring by the competent authority is the effective date of the document issued by the competent Party, State, or socio-political organization regarding organizational and administrative restructuring.

a) Within 12 months from the above-prescribed timing, officials, public employees, and employees who are decided by the competent authority to retire (early retirement or severance) will receive policy benefits as prescribed for the first 12 months.

b) After the time specified in point a above, policy benefits will be calculated according to the regulations from the 13th month onward.

2. The current monthly salary as prescribed in Clause 6, Article 5 of Decree 178/2024/ND-CP for calculating policy benefits when retiring as follows:

a) For those receiving salaries according to the salary scale prescribed by the State

The current monthly salary includes: salary according to grades, steps, positions, titles, professional titles, and salary allowances (including leadership position allowance; seniority beyond salary scale allowance; professional seniority allowance; preferential professional allowance; professional responsibility allowance; public service allowance; allowance for Party, political-social organization responsibilities, if any), specifically:

Current monthly salary = Coefficient of salary according to grades, steps, positions, titles, professional titles x Statutory pay rate + Leadership position allowance coefficient (if any) x Statutory pay rate + Allowance amounts calculated based on grades, steps, positions, titles, professional titles (if any)

The statutory pay rate for calculating the current monthly salary as mentioned above is the statutory pay rate as prescribed by the Government of Vietnam at the nearest month preceding the retirement month.

b) For those receiving a salary amount agreed upon in a labor contract, the current monthly salary is the salary amount stated in the labor contract.

3. The number of months of early retirement is the number of months calculated from the retirement date as decided by the competent authority compared to the retirement age stipulated in Appendix I or Appendix II issued with Decree No. 135/2020/ND-CP, dated November 18, 2020, by the Government of Vietnam regulating the retirement age.

4. The number of years of early retirement is calculated from the retirement date, as decided by the competent authority, compared to the retirement age stipulated in Appendix I or Appendix II issued with Decree No. 135/2020/ND-CP as prescribed in Clause 4, Article 5 of Decree 178/2024/ND-CP.

5. The period for calculating the allowance according to the number of working years with compulsory social insurance contribution is calculated as prescribed in Clause 3, Article 5 of Decree No. 178/2024/ND-CP.

Circular 1/2025/TT-BNV takes effect from the date of signing. Policies as prescribed in this Circular come into effect from January 1, 2025.

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