Streamlining the workforce in accordance with Resolution 18 of the Central Committee, the Ministry of Justice has released a draft proposal outlining retirement packages for individuals who do not meet the age requirements for reappointment or re-election to their positions.
However, alongside the officials holding these positions, there are also many young civil servants and public employees who may face unemployment due to this streamlining process.
So, what happens to these civil servants and public employees who are let go through this process and don’t yet meet the retirement age? What kind of settlement will they receive?
The streamlining process may result in unemployment for many young civil servants and public employees. (Illustrative image)
According to Article 7, Clauses 1 and 3 of Decree No. 29/2023/NĐ-CP, which sets out the policies on dismissal, the following provisions apply:
For those who are at least two years younger than the minimum retirement age (as specified in Appendices I and II issued together with Decree No. 135/2020/NĐ-CP) and do not meet the conditions for early retirement, the following benefits apply if they are dismissed from their positions:
– A three-month allowance of their current salary to find a new job.
– A severance package of 1.5 months of average salary for each year of work with mandatory social insurance contributions.
For those under the age of 45 who are in good health, have a strong sense of responsibility and organizational discipline, but are working in positions that do not match their training or specialization and wish to leave, the following provisions apply:
– They will continue to receive their current salary, and the agency or unit will continue to pay for their social insurance, health insurance, and unemployment insurance (if applicable) during their vocational training period, up to a maximum of six months.
In addition to the general social insurance policies, the state needs to allocate additional budget support to help employees adapt and find new jobs. (Illustrative image)
– They will receive a training allowance equivalent to six months of their current salary to cover the cost of a vocational training course.
– After completing the training, they will receive a three-month allowance of their current salary at the time of training to find a new job.
– They will receive a severance package of half a month of average salary for each year of work with social insurance contributions.
During the training period, their continuous working time will be calculated, but it will not be considered for annual regular salary increases.
Those who are dismissed will have their social insurance contribution period preserved and will be assigned a social insurance book number, or they can choose to receive a lump-sum social insurance benefit in accordance with the Law on Social Insurance. However, they will not be eligible for the dismissal policies applicable to civil servants and public employees as stipulated by law.
Individuals who undergo streamlining and receive dismissal benefits after completing vocational training will have their contribution period preserved and will be assigned a social insurance book or receive a lump-sum benefit. Nonetheless, they will not be entitled to the dismissal policies designed for civil servants and public employees.
Pham Minh Huan, former Deputy Minister of Labor, Invalids, and Social Affairs
The State Should Provide Supportive Policies
When streamlining the apparatus of officials, civil servants, and public employees, the state should implement supportive policies to help employees adapt to unemployment and find new jobs.
“In addition to the general social insurance policies, the state needs to allocate additional budget support to help employees adapt and find new jobs. Young civil servants and public employees who lose their jobs are forced to start over outside the system. To ease this transition, the state should provide separate supportive policies, including vocational training and job referrals to stabilize their lives,” said Huan.
Huan also added that administrative reform is a revolution, and like any revolution, there will be sacrifices. However, for units that can self-balance their finances (without relying on state funds), the state should assess the impact and devise appropriate roadmaps to prevent hundreds or thousands of employees from losing their jobs.
The Golden Years: Navigating Early Retirement Packages and Pension Plans
Those who are subject to the streamlined staffing arrangement will be entitled to various allowance regimes when they retire early, with different salary allowance levels depending on the specific object of the arrangement.
“Restructuring for Efficiency in Thanh Hoa: No Place for Special Interests.”
The reorganization of the political system in Thanh Hoa province requires a meticulous and unbiased approach. Leaders of merged units must demonstrate integrity, objectivity, transparency, and accountability. There is no room for negativity, vested interests, or partisanship in the process of streamlining the organizational structure and personnel arrangements.
The Lean Revolution: Serving Citizens and Businesses Best
The Government, National Assembly, and the Vietnam Fatherland Front Central Committee must finalize the overall plan for the arrangement of the apparatus in accordance with Resolution 18 – “Some issues on continuing the renewal and arrangement of the organization of the political system’s apparatus to be streamlined and operate effectively and efficiently”. The goal is to complete the reorganization of the central agencies’ apparatus by the first quarter of 2025.
The Golden Years: Unlocking Retirement Benefits After 40 Years of Social Insurance Contributions – What’s Your Pension Worth?
Retirement benefits serve as a solid financial foundation for social insurance participants and their families when they reach retirement age. This is especially true for those who have diligently contributed to the social insurance program for 30 years or more, providing them with a sense of security and stability in their golden years.
Streamlining the Unemployment Insurance Process
The process and procedure for claiming unemployment benefits are complex and inefficient, and therefore, it is necessary to simplify them as soon as possible.
