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| Minister of Home Affairs Pham Thi Thanh Tra reports on the progress of the restructuring of the Government’s organizational apparatus__Photo: Duong Giang/VNA |
About VND 130 trillion (USD 5.1 billion) is needed to implement policies and regimes for officials, civil servants, public employees, and workers as part of the scheme to streamline the political system’s organizational apparatus, the Ministry of Home Affairs has projected.
According to the draft decree the ministry has submitted to the Government, the funding for the scheme will be sourced from State budget and revenues from self-financing public non-business units.
The money includes VND 111 trillion for policy payment for officials; VND 4 trillion for workers; VND 9 trillion for policies related to commune-level civil servants; VND 4 trillion for social insurance contributions; and VND 2 trillion for training and development costs.
The ministry explained that the staff streamlining process will reduce ongoing regular expenditures and lower the State budget’s contribution to social insurance, health insurance, and union fees for officials, civil servants, and public employees who retire. This will result in a 22 percent reduction in these costs, along with a 10 percent cut in the bonus fund.
The Government expects to save around VND 113 trillion for the State budget over the next five years.
The new policies apply to officials, civil servants, management staff, and specialist civil servants, as well as employees working under fixed-term labor contracts according to labor laws before January 15, 2019. However, those who have already been notified of their retirement before the official decision on restructuring takes effect will not be covered by these policies.- (VLLF)
