Guidance on Funding Sources for Addressing Downsizing Policies in Public Service Providers

Guidelines on Funding Sources to Implement the Downsizing Policy in Public Service Providers

Funding for the implementation of the downsizing policy for public employees (including public employees as stipulated in point b, clause 1, Article 9, Decree 29/2023/ND-CP), individuals working under indefinite-term labor contracts performing specialized professional tasks as per the list of job positions and professional titles in specialized fields and shared professional titles according to the regulations of the Government of Vietnam in public service providers shall be arranged as follows:

- For public service providers that self-finance their recurrent and investment expenditures; public service providers that self-finance their recurrent expenditures according to the regulations of the Government of Vietnam: The funds for the downsizing policy shall be sourced from the unit's operating revenue as stipulated in clause 1, Article 11, Decree 29/2023/ND-CP.

- For public service providers partially covering their recurrent expenditures and public service providers whose recurrent expenditures are covered by the state budget:

+ The unit shall use the annually allocated state budget for recurrent expenditures (in addition to the state budget funds allocated to implement the downsizing policy as stipulated in point b, clause 2, Article 3, Circular 13/2024/TT-BTC) and revenue from operations as stipulated in clauses 1 and 2, Article 11, Decree 29/2023/ND-CP to pay for the following policies:

++ A one-time allowance equivalent to 03 months of the current salary as stipulated in point a, clause 1, Article 6; point a, clause 1, and point c, clause 2, Article 7 of Decree [29/2023/ND-CP](https://lawnet.vn/vb/Nghi-dinh-29-2023-ND-CP-tinh-gian-bien-che-886A3.html).++ Continued payment of the current salary and social insurance, health insurance, and unemployment insurance contributions (if applicable) during the vocational training period and vocational training allowances for eligible individuals as stipulated in point a and point b, clause 2, Article 7, Decree [29/2023/ND-CP](https://lawnet.vn/vb/Nghi-dinh-29-2023-ND-CP-tinh-gian-bien-che-886A3.html);

+ The state budget allocates funds along with the entity's operational revenue to implement other policies (excluding policies in point a, clause 2, Article 3, Circular 13/2024/TT-BTC) as stipulated in Article 5, Article 6, Article 7, and Article 9 of Decree 29/2023/ND-CP following these principles:

++ For public employees, individuals working under indefinite-term labor contracts as stipulated in clause 2, Article 2 of Decree [29/2023/ND-CP](https://lawnet.vn/vb/Nghi-dinh-29-2023-ND-CP-tinh-gian-bien-che-886A3.html) in public service providers under central ministries or agencies, the central budget ensures and allocates funds in the annual budget estimates of these public service providers;++ For public employees, individuals working under indefinite-term labor contracts as stipulated in clause 2, Article 2 of Decree [29/2023/ND-CP](https://lawnet.vn/vb/Nghi-dinh-29-2023-ND-CP-tinh-gian-bien-che-886A3.html) in public service providers under local management units, the local budget ensures allocation according to the current state budget decentralization regulations.

Refer to Circular 13/2024/TT-BTC effective from April 15, 2024.

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