Facing dissolution, 40-year-old Nguyen Van Cong from Ho Chi Minh City, with 15 years of dedication to the public sector, is anxious about finding a new job at his age. “I am confident in my abilities, but I fear that the market may not be as receptive to someone my age,” shared Cong.
Over the years, Cong has built connections with many enterprises through his work, and in the past week, he has reached out to a few of them, expressing his willingness to take on temporary or probationary positions to learn and prove his capabilities.
Additionally, he has been exploring vocational courses to re-enter the private sector. His goal is to reacquaint himself with the labor market, aiming for a modest income to support his children, while living frugally himself.
Younger civil servants who are laid off will also receive a vocational training allowance equivalent to six months’ salary. (Illustrative image)
Tran My Phung, a 30-year-old employee of a publishing house in Hanoi, has decided to resign from her position as a civil servant. With eight years of experience in the public sector and a good income, Phung wants to pursue a new path as a legal officer for a foreign company, having recently obtained a second degree in law.
The new decree draft, which aims to replace Decree 29/2023 on streamlining personnel (developed by the Ministry of Home Affairs), proposes two options for those affected by the streamlining process, especially those who have not yet reached retirement age.
According to the draft, individuals who are laid off before retirement age and do not meet the conditions for early retirement as specified in the draft decree, will be entitled to three benefits if they leave immediately: a three-month salary allowance to seek new employment; a 1.5-month salary allowance for each year of compulsory social insurance contribution; and the option to either continue receiving social insurance benefits or receive a lump sum according to social insurance law.
The draft also proposes that civil servants under 45 years old who are healthy, conscientious, and disciplined but are working in positions that do not match their qualifications or training, and who wish to resign, will be supported by their agencies, organizations, or units in finding new jobs. These individuals will continue to receive their current salaries and have social insurance, health insurance, and unemployment insurance (if applicable) covered by their employers for up to six months while they undergo vocational training.
Additionally, this group will receive a vocational training allowance equivalent to six months’ salary to cover the cost of the training course.
Younger civil servants who are laid off can also choose to receive a lump sum of their social insurance contributions. (Illustrative image)
After completing their vocational training, they will receive a three-month salary allowance to seek new employment and an additional half-month salary allowance for each year of compulsory social insurance contribution. The vocational training period will be considered as continuous work experience but will not count towards their annual salary increment.
Finally, they will have the option to either continue receiving social insurance benefits or receive a lump sum according to social insurance law.
Regarding funding, the draft specifies that for civil servants, public employees, and those working in communal-level positions, the budget for implementing the streamlining policy will come from the state budget.
For public employees in public service units that are self-financing for regular and investment expenses, or those that are self-financing for regular expenses, the budget for implementing the streamlining policy will come from the unit’s business activity revenue.
In cases where public service units that are self-financing for regular and investment expenses or self-financing for regular expenses do not have sufficient funds to implement the streamlining policy, they may use funds allocated for the unit’s development and salary reform, in accordance with the regulations of public service units.
For public employees in public service units that are partially state-funded for regular expenses or fully state-funded for regular expenses, the budget for implementing the streamlining policy will be provided by the state budget.
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