On January 24, 2025, the Minister of Finance of Vietnam issued Circular 07/2025/TT-BTC providing guidance on determining funding sources and preparing estimates, managing, using, and finalizing funds to implement the policies stipulated in Decree 178/2024/ND-CP concerning policies for officials and public employees, workers, and the armed forces in the process of reorganizing the political system's organizational structure.
In Circular 07/2025/TT-BTC, the Ministry of Finance of Vietnam has provided guidance on determining the funding sources for implementing policies and policies for officials; commune-level officials; armed forces, and workers (excluding workers in public service providers) as follows:
- Authorities and units shall use the annually allocated regular spending budget estimates to pay for the following policies:
+ Funding to retain the previous position salary or previous leadership position allowance until the end of the election term or the end of the appointment period for leaders, managers who resign from leadership, management positions or are elected or appointed to lower leadership, management positions due to organizational restructuring as stipulated in Article 11 Decree 178/2024/ND-CP;
+ Continue to pay the current salary (including salary allowances) according to the job position before being sent by the agency, organization, or unit to strengthen work at the grassroots level as stipulated in point a, clause 1 and point a, clause 2, Article 12 Decree 178/2024/ND-CP;
+ Salary increment policy as stipulated in point d, clause 1, point d, clause 2, Article 12 and clause 1, Article 13 Decree 178/2024/ND-CP;
+ Rewarding funds for subjects as stipulated in clause 3, Article 7, point d, clause 1, point d, clause 2, Article 12; clause 2, Article 13 Decree 178/2024/ND-CP.
- State budget allocates funds to implement other policies and policies (besides the policies and policies in clause 1, Article 2 Circular 07/2025/TT-BTC) in Article 7, Article 8, Article 9, Article 10, Article 12, Article 15 Decree 178/2024/ND-CP as follows:
+ For the subjects of officials, workers, armed forces under the management scope of ministries, ministry-level agencies, agencies under the Government of Vietnam, and other central agencies (hereinafter referred to as ministries, central agencies), the central budget shall ensure;
+ For officials; commune-level officials and workers under or directly under units managed by localities: The funding for implementing policies, policies is compiled into the local wage reform needs.
- For agencies, organizations, units after mergers and acquisitions that conduct training and retraining to improve professional qualifications and skills suitable for job positions for officials: To be implemented according to regulations in clause 3, Article 16 Decree 178/2024/ND-CP. For the funding implementation of this policy at the local level, it is compiled into the local wage reform needs.
More details can be found in Circular 07/2025/TT-BTC effective from January 24, 2025.
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