Guidance on implementing policies and regimes for cadres, civil servants, public employees and workers in implementing organizational restructuring
The Ministry of Home Affairs has just issued Circular No. 1/2025/TT-BNV dated January 17, 2025 guiding the implementation of policies and regimes for cadres, civil servants, public employees and workers in the implementation of organizational restructuring of the political system.
FULL TEXT OF CIRCULAR NO. 1/2025/TT-BNV
This Circular guides the implementation of policies and regimes for cadres, civil servants, public employees and workers in agencies, organizations and units specified in Article 1 of Decree No. 178/2024/ND-CP in the process of restructuring the apparatus and administrative units at all levels of the political system, including: how to determine the time and monthly salary to calculate policies and regimes; how to calculate policies for people who retire before the age; how to calculate severance policies for cadres, civil servants and commune-level cadres and public employees; how to calculate severance policies for public employees and workers and implement policies on training and fostering to improve the qualifications of cadres, civil servants and public employees after restructuring.
How to determine time and monthly salary to calculate policies and benefits
The Circular provides specific instructions on how to determine the time and monthly salary to calculate policies and benefits as follows:
1. The time of decision on organizational arrangement of the competent authority is the effective time of the document issued by the competent authority of the Party, State, or socio-political organization on organizational arrangement and administrative unit arrangement.
a) Within 12 months from the above-mentioned time, cadres, civil servants, public employees and workers who are decided by competent authorities to retire (retire early or quit their jobs) will be entitled to policies and regimes according to the regulations of the first 12 months.
b) After the deadline specified in Point a above, the policy and regime will be calculated according to the regulations of the 13th month onwards.
2. Current monthly salary as prescribed in Clause 6, Article 5 of Decree No. 178/2024/ND-CP to calculate policies and regimes when leaving work is as follows:
a) For those receiving salaries according to the salary scale prescribed by the State.
Current monthly salary includes: Salary level according to rank, position, title, professional title and salary allowances (including: Leadership position allowance; seniority allowance beyond the framework; seniority allowance; preferential allowance according to profession; responsibility allowance according to profession; public service allowance; allowance for Party work, political and social organizations, if any), specifically:
| Current monthly salary | = | Salary coefficient by rank, position, title, professional title | x | Basic salary | + | Leadership position allowance coefficient (if any) | x | Basic salary | + | The amount of allowances is calculated according to salary scale, rank, position, title, professional title (if any). |
The basic salary used to calculate the current monthly salary mentioned above is the basic salary prescribed by the Government at the time of the month preceding the month of leave.
b) For those who receive a salary in cash according to the agreement stated in the labor contract, the current monthly salary is the monthly salary stated in the labor contract.
3. The number of months of early retirement is the number of months calculated from the time of retirement according to the decision of the competent authority compared to the retirement age specified in Appendix I or Appendix II issued with Decree No. 135/2020/ND-CP dated November 18, 2020 of the Government regulating the retirement age.
4. The number of years of early retirement is the number of years calculated from the time of retirement according to the decision of the competent authority compared to the retirement age specified in Appendix I or Appendix II issued with Decree No. 135/2020/ND-CP calculated according to the provisions of Clause 4, Article 5 of Decree No. 178/2024/ND-CP.
5. The time to calculate the allowance based on the number of years of work with compulsory social insurance contributions is calculated according to the provisions of Clause 3, Article 5 of Decree No. 178/2024/ND-CP.
How to calculate policy benefits for people who retire early
Subjects specified in Article 2 of this Circular who are eligible and have been decided by competent authorities to retire early compared to the retirement age specified in Appendix I or Appendix II issued with Decree No. 135/2020/ND-CP, shall immediately receive pension according to the provisions of the law on social insurance without having the pension rate deducted due to early retirement; at the same time, they shall receive a one-time pension allowance specified in Clause 1, Article 7 of Decree No. 178/2024/ND-CP; allowance based on the number of years of early retirement and allowance based on the working period with compulsory social insurance payment specified in Clause 2, Article 7 of Decree No. 178/2024/ND-CP, specifically as follows:
1. For cases with remaining life expectancy from 02 years to 05 years to retirement age specified in Point a and Point c, Clause 2, Article 7 of Decree No. 178/2024/ND-CP, they are entitled to the following 03 allowances:
a) One-time retirement benefit for the number of months of early retirement:
For retirees within the first 12 months:
| One-time pension benefit level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 1.0 x | Number of months of early leave specified in Clause 3, Article 3 of this Circular |
For retirees from the 13th month onwards:
| One-time pension benefit level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.5 x | Number of months of early leave specified in Clause 3, Article 3 of this Circular |
b) Allowance for years of early retirement: For each year of early retirement (full 12 months), receive 05 months of current salary.
| Benefit level for years of early retirement | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 5 x | Number of years of early retirement specified in Clause 4, Article 3 of this Circular |
c) Allowance based on working time with compulsory social insurance:
For the first 20 years of work with compulsory social insurance, a subsidy of 5 months of current salary is provided; for the remaining years (from the 21st year onwards), each year a subsidy of 0.5 months of current salary is provided.
| Subsidy level is calculated based on working time with compulsory social insurance. | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x | 5 (for the first 20 years of work with mandatory social insurance) | + | 0.5 x | Number of years of work with compulsory social insurance remaining from the 21st year onwards |
2. For those with a remaining life expectancy of more than 05 years but reaching 10 years of retirement age as prescribed in Point b, Clause 2, Article 7 of Decree No. 178/2024/ND-CP, they are entitled to the following 03 allowances:
a) One-time retirement benefit for the number of months of early retirement:
For retirees within the first 12 months:
| One-time pension benefit level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.9 x 60 months |
For retirees from the 13th month onwards:
| One-time pension benefit level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.45 x 60 months |
b) Allowance for years of early retirement: For each year of early retirement (full 12 months), the employee will receive 04 months of current salary.
| Benefit level for years of early retirement | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x | 4 | x | Number of years of early retirement specified in Clause 4, Article 3 of this Circular |
c) Allowance based on working time with compulsory social insurance:
For the first 20 years of work with compulsory social insurance, a subsidy of 5 months of current salary is provided; for the remaining years (from the 21st year onwards), each year a subsidy of 0.5 months of current salary is provided.
| Subsidy level is calculated based on working time with compulsory social insurance. | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x | 5 (for the first 20 years of work with mandatory social insurance) | + | 0.5 x | Number of years of work with compulsory social insurance remaining from the 21st year onwards |
3. In case of having less than 02 years of age to reach the retirement age prescribed in Point d and Point dd, Clause 2, Article 7 of Decree No. 178/2024/ND-CP, they will be entitled to a one-time pension allowance for the number of months of early retirement as calculated for retirees within the first 12 months prescribed in Point a, Clause 1 of this Article.
How to calculate the severance pay policy for cadres, civil servants and commune-level cadres and civil servants
Cadres, civil servants and commune-level cadres and civil servants specified in Article 2 of this Circular who are dismissed by competent authorities shall have their social insurance payment period reserved or receive one-time social insurance benefits in accordance with the provisions of the law on social insurance specified in Clause 3, Article 9 of Decree No. 178/2024/ND-CP; and at the same time, shall receive 03 allowances specified in Clause 1, Clause 2 and Clause 4, Article 9 of Decree No. 178/2024/ND-CP as follows:
1. Severance pay:
For those who quit within the first 12 months:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.8 x | Time to calculate severance allowance as prescribed in Clause 2, Article 5 of Decree No. 178/2024/ND-CP |
For those who quit their job from the 13th month onwards:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.4 x | Time to calculate severance allowance as prescribed in Clause 2, Article 5 of Decree No. 178/2024/ND-CP |
2. Subsidy of 1.5 months of current salary for each year of work with compulsory social insurance:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 1.5 x | Number of years of work with compulsory social insurance as prescribed in Clause 3, Article 5 of Decree No. 178/2024/ND-CP |
3. Subsidy of 03 months of current salary to find a job:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 3 |
How to calculate severance pay for civil servants and employees
Officials and employees specified in Article 2 of this Circular who are dismissed by competent authorities shall have their social insurance payment period reserved or receive one-time social insurance benefits in accordance with the provisions of the law on social insurance specified in Clause 3, Article 10 of Decree No. 178/2024/ND-CP; and at the same time, shall enjoy 03 policies specified in Clause 1, Clause 2 and Clause 4, Article 10 of Decree No. 178/2024/ND-CP as follows:
1. Severance pay:
For those who quit within the first 12 months:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.8 x | Time to calculate severance allowance as prescribed in Clause 2, Article 5 of Decree No. 178/2024/ND-CP |
For those who quit their job from the 13th month onwards:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 0.4 x | Time to calculate severance allowance as prescribed in Clause 2, Article 5 of Decree No. 178/2024/ND-CP |
2. Subsidy of 1.5 months of current salary for each year of work with compulsory social insurance:
| Subsidy level | = | Current monthly salary as prescribed in Clause 2, Article 3 of this Circular | x 1.5 x | Number of years of work with compulsory social insurance as prescribed in Clause 3, Article 5 of Decree No. 178/2024/ND-CP |
3. Enjoy unemployment insurance policies according to the instructions in Circular No. 28/2015/TT-BLDTBXH dated July 31, 2015 of the Minister of Labor - Invalids and Social Affairs guiding the implementation of Article 52 of the Law on Employment and a number of articles of Decree No. 28/2015/ND-CP dated March 12, 2015 of the Government detailing the implementation of a number of articles of the Law on Employment on unemployment insurance (amended and supplemented in Circular No. 15/2023/TT-BLDTBXH dated December 29, 2023).
Training and improving the qualifications of cadres, civil servants and public employees after reorganization
The Circular clearly states that, based on their functions and tasks, the heads of agencies, organizations and units directly managing and using cadres, civil servants and public employees shall review, assess the current situation and determine the training and development needs according to the job position after the arrangement for cadres, civil servants and public employees under their management. On that basis, a plan for training and development of cadres, civil servants and public employees in 2025 and the period 2026 - 2030 shall be made, focusing on 2025 to ensure that the cadres, civil servants and public employees after the arrangement basically meet the requirements and tasks according to the job position.
Circular No. 1/2025/TT-BNV takes effect from the date of signing (January 17, 2025). The policies and regimes prescribed in this Circular shall be applied from January 1, 2025.
Pursuant to the provisions of Clause 2, Article 24 of Decree No. 178/2024/ND-CP, those who have enjoyed the policies prescribed in Decree No. 29/2023/ND-CP dated June 3, 2023 of the Government on streamlining payroll before January 1, 2025 shall not enjoy the policies and regimes prescribed in this Circular.
Agencies, organizations and units in the process of implementing the organizational arrangement, streamlining the payroll, associated with restructuring and improving the quality of cadres, civil servants and public employees implementing the policy of resignation are responsible for implementing it synchronously with the policy for cadres, civil servants and public employees who increase their business trips to the grassroots; the policy of employing people with outstanding qualities and abilities (including amending the regulations on considering early salary increases due to excellent achievements in performing the tasks of the agency, organization or unit, which must give the highest priority to those who are assessed to have outstanding qualities and abilities to have their salaries increased by one level) and the policy of training and fostering cadres, civil servants and public employees after the arrangement./.
