Are redundant cadres due to rearrangement of administrative units subject to downsizing in Vietnam?

Are redundant cadres due to rearrangement of administrative units subject to downsizing in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Are redundant cadres due to rearrangement of administrative units subject to downsizing in Vietnam?

Specifically, at Point b, Clause 1, Article 2 of Decree 29/2023/ND-CP stipulating cadres, civil servants, and public employees; commune-level cadres and civil servants; and people working under indefinite-term labor contracts in administrative agencies are entitled to the same regimes and policies as civil servants according to the Government's regulations, in case of redundancy due to the rearrangement of administrative units at district or commune level according to the decision of the competent authority, the subject of the policy of downsizing of staff.

2. Policy on early retirement for redundant cadres due to the arrangement of commune-level administrative units whose age is at most 10 years old and at least 5 years lower than the retirement age in Vietnam

Pursuant to Article 8 of Decree 29/2023/ND-CP, the policy on early retirement for commune-level cadres and civil servants is redundant due to the arrangement of commune-level administrative units whose age is at most 10 years old and at least 5 years lower than the retirement age according to the provisions of the law on social insurance as follows:

- Subjects of downsizing are commune-level cadres and civil servants who are redundant due to the arrangement of commune-level administrative units whose age is at most 10 years old and at least 5 years younger than the retirement age specified in Appendix I issued together with Decree 135/2020/ND-CP and who have paid compulsory social insurance premiums for a full 20 years or more. In addition to enjoying the retirement regime as prescribed by the law on social insurance, they are also entitled to the following regimes:

+ The pension rate is not deducted due to early retirement;

+ Receiving a subsidy of 1.5 months of average salary for each year of retirement before the retirement age specified in Appendix I issued together with Decree 135/2020/ND-CP;

+ Enjoying the regimes specified at Point c, Clause 1, Article 5 of Decree 29/2023/ND-CP.

- Objects of downsizing are female cadres and civil servants at commune level who are redundant due to the arrangement of commune-level administrative units and whose age is at most 10 years old and at least 5 years younger than the retirement age specified in Appendix I issued together with Decree 29/2023/ND-CP and have a full 15 to under 20 years of compulsory social insurance, in addition to enjoying the retirement regime as prescribed by the law on social insurance, they are also entitled to the following regimes:

+ The pension rate is not deducted due to early retirement;

+ Being entitled to a 5-month allowance of average salary and the regimes specified at Point b, Clause 1, Article 8 of Decree 29/2023/ND-CP.

3. Policy on 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 the end of the schedule in Vietnam

According to Point a, Clause 1, Article 9 of Decree 29/2023/ND-CP, objects of downsizing are district and commune-level cadres who are redundant due to the rearrangement of the administrative unit and have retired since the decision on arrangement of the competent authority before the end of the arrangement schedule. In addition to enjoying one of the policies specified in Article 5, Article 6, Article 7, and Article 8 of Decree 29/2023/ND-CP, they will be entitled to the following additional allowance:

- If taking leave within 12 months from the decision of the competent authority: For each month of leave before the end of the term, a subsidy equal to 1/2 of the current salary;

- If leaving after 12 months from the date of the decision on arrangement by the competent authority to before the end of the term:
  For each month of leave before the end of the term, the allowance is equal to 1/4 of the current salary;

- Particularly for subjects whose time of retirement is before the end of their term, the number of months to enjoy the allowance shall be calculated by the number of months of previous retirement compared with the time of retirement mentioned above.

More details can be found in Decree 29/2023/ND-CP, effective as of July 20, 2023. The regimes and policies specified in Decree 29/2023/ND-CP will be applied until the end of December 31, 2030.

As of July 20, 2023, the decrees cease to be effective, including: Decree 108/2014/NĐ-CP; Decree 113/2018/NĐ-CP; Decree 143/2020/NĐ-CP.

Ho Quoc Tuan

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