Guidelines on funding sources to implement the downsizing policy in public service providers in Vietnam

Guidelines on funding sources to implement the downsizing policy in public service providers in Vietnam

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.++  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;

+ 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  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  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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