The policy of downsizing from July 20, 2023 in Vietnam

The policy of downsizing from July 20, 2023 in Vietnam

According to Decree 29/2023/ND-CP, the downsizing policy in Vietnam includes:

- Early retirement policy.

- Policy to switch to work at organizations without a regular salary from the state budget.

- The policy of severance.

- Policy on early retirement for commune-level cadres and civil servants redundant due to the arrangement of commune-level administrative units whose age is at most 10 years old and is at least 5 years younger than the retirement age in accordance with the law on social insurance.

- Policy for subjects to reduce redundant staff due to rearrangement of administrative units at district and commune levels, from the time the competent authority's decision on arrangement is issued to before the end of the schedule.

These downsizing policies will be applied from July 20, 2023, to the end of December 31, 2030.

Principles of downsizing in Vietnam 

- Ensuring the leadership of the Party, and promoting the supervisory role of socio-political organizations and the people in the process of downsizing.

- Associating the downsizing of the staff with the organizational arrangement of the apparatus in the direction of leanness, effective and efficient operation, and restructuring, and improving the quality of the contingent of cadres, civil servants, and public employees according to their employment positions, in line with the autonomy mechanism of agencies, organizations, and units.

- Ensuring the principles of democratic centralism, objectivity, fairness, publicity, transparency, and compliance with the law.

- Ensuring payment of payroll reduction regimes and policies in a timely and complete manner in accordance with law, ensuring efficient use of the state budget.

- The head must be responsible for the results of downsizing in the agency, organization, or unit assigned to manage according to his/her competence.

- Subjects of downsizing who are elected or re-recruited into agencies, organizations, and units receiving salaries from the state budget within 60 months from the date of downsizing must return the subsidy amount received to the agency, organization, or unit that has paid the allowance.

Decree 29/2023/ND-CP takes effect from July 20, 2023.

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