Downsizing subjects can be supported with 3 months salary.

The Ministry of Finance is drafting a circular to guide the preparation of estimates, allocation, use and settlement of funds for implementing the policy of streamlining payroll.

Accordingly, subjects subject to staff reduction as prescribed in Decree 68/2000/ND-CP will receive a one-time subsidy equal to 3 months of current salary. At the same time, these subjects will also be supported to pay social insurance, health insurance, receive salary during vocational training and subsidized vocational training costs.

For agencies and units implementing autonomy, the budget for streamlining the payroll is arranged from the revenue and legal funding sources of the agency or unit. For agencies and units that are partly autonomous in their regular expenditures or guaranteed by the state budget, the budget for streamlining the payroll is arranged in the annual budget and the revenue retained by the agency or unit.

For other cases such as employees recruited for the first time by public service units from October 29, 2003 onwards who are subject to staff reduction, the budget to resolve the staff reduction policy for these subjects will be taken from the regular budget of the service unit.

The budget for resolving the policy of streamlining the payroll for employees in associations is taken from the association's operating budget according to regulations.

The budget for resolving the policy of streamlining the payroll for cadres, civil servants, public employees, and indefinite-term labor contracts for a number of positions as prescribed by law working in the Vietnam General Confederation of Labor is taken from 2% of the Trade Union budget.

The budget for resolving the policy of streamlining the payroll for the subjects specified in Clauses 4 and 5, Article 6 of Decree No. 108/2014/ND-CP is taken from the Fund for Supporting Redundant Laborers due to the restructuring of state-owned companies and enterprises according to the provisions of law.

The draft circular also stipulates that state budget funds allocated to implement the policy of streamlining staff for ministries and branches are allocated to non-autonomous funding sources and irregular funding for budget-using units.

Based on the list of staff reduction approved by competent authorities, ministries and branches proactively use the annual state budget estimates to pay benefits and policies to staff reduction subjects according to regulations.

Periodically twice a year (no later than July 15 of each year reporting the results of streamlining the payroll for the first 6 months of the year and no later than January 15 of each year reporting the results of streamlining the payroll for the last 6 months of the previous year), ministries and branches synthesize the results of streamlining the payroll, including the list of subjects of streamlining the payroll (with explanations clarifying the reasons for streamlining the payroll for each subject) and the budget for streamlining the payroll of their ministries and branches to send to the Ministry of Home Affairs and the Ministry of Finance for inspection according to regulations.

In case of implementing staff streamlining for incorrect subjects according to the provisions of law, the agency, organization, or unit directly managing the cadres, civil servants, and public employees shall be responsible for recovering and submitting to the budget the amount of benefits and policies for staff streamlining that have been granted to the cadres, civil servants, and public employees.

In case the beneficiary of the policy of streamlining the payroll is not the correct subject according to regulations and has passed away, the agency, organization or unit directly managing the subject shall use the annual budget estimate or the unit's revenue to pay the budget for the expenses paid to the subject, the state budget shall not supplement the budget./.