Joint Circular No. 01/2015/TTLT-BNV-BTC guiding certain provisions of Government Decree No. 108/2014/NĐ-CP dated November 20, 2014 on the policy of streamlining the establishment.

JOINT CIRCULAR

Guidelines for certain provisions of N |||Decree number 108/2014/CP- dated October 20, 2015 of November 20, 2014 of Cgovernment on reduction of establishment size policy

___________________ 

Pursuant to Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on the policy for reducing staff establishments;

On the basis of Decree number 58/2014/NĐ-CP dated June 16, 2014 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Home Affairs;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Minister of Home Affairs and the Minister of Finance issue this Joint Circular guiding certain provisions of Decree number 108/2014/NĐ-CP dated November 20, 2014 of the Government on policies for streamlining the establishment (hereinafter referred to as Decree number 108/2014/NĐ-CP).

PART I

GENERAL PROVISIONS

Article 1. Management and utilization of establishment

1. Ministries, ministerial-level agencies, government agencies, organizations established by the Government, organizations established by the Government, and provincial People's Committees directly under the central government (hereinafter referred to as ministries, sectors, localities):

a) Direct and guide subordinate agencies, organizations, and public service units under their jurisdiction in managing and utilizing establishments that have been streamlined and personnel positions of civil servants, public officials, and employees who have retired at the statutory age or resigned according to the law;

b) Are permitted to utilize up to a maximum of 50% of the establishments that have been streamlined and 50% of the personnel positions of civil servants, public officials, and employees who have retired at the statutory age or resigned according to the law (excluding village-level cadres and civil servants) within the year for new recruitment of civil servants and public officials;

c) Aggregate the personnel positions of civil servants, public officials, and employees that have been streamlined and the personnel positions of civil servants, public officials, and employees who have retired at the statutory age or resigned according to the law of their respective ministries, sectors, and localities and submit them to the Ministry of Home Affairs.

2. Ministries, sectors, and localities shall direct and organize reviews and inspections of the management and utilization of establishments at subordinate agencies, organizations, and public service units under their jurisdiction; develop plans for arranging and reorganizing establishments exceeding the regulations at these agencies, organizations, and public service units.

Article 2. Cases of streamlining establishments specified in Point g Clause 1 Article 6 of Decree number 108/2014/NĐ-CP

Cadres, civil servants, and public officials within the establishment and village-level cadres and civil servants receiving salaries from the state budget or the unit's wage fund according to the law (hereinafter collectively referred to as cadres, civil servants, and public officials) who have had two consecutive years immediately prior to the time of considering streamlining the establishment, each year having a total number of days off equal to the maximum number of sick leave days as stipulated in Clause 1 Article 23 of the Social Insurance Law 2006, Clause 1 Article 26 of the Social Insurance Law 2014, confirmed by healthcare facilities and social insurance agencies paying sickness benefits according to current regulations, specifically as follows:

1. Those working under normal conditions and with less than 15 years of social insurance contributions, each year having a total of 30 days off.

2. Those working under normal conditions and with 15 to less than 30 years of social insurance contributions, each year having a total of 40 days off.

3. Those working under normal conditions and with 30 or more years of social insurance contributions, each year having a total of 60 days off.

4. Those engaged in occupations or jobs classified as heavy, hazardous, dangerous, or extremely heavy, hazardous, and dangerous in the list issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or working regularly in areas with regional allowances of 0.7 or higher and with less than 15 years of social insurance contributions, each year having a total of 40 days off.

5. Those engaged in occupations or jobs classified as heavy, hazardous, dangerous, or extremely heavy, hazardous, and dangerous in the list issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or working regularly in areas with regional allowances of 0.7 or higher and with 15 to less than 30 years of social insurance contributions, each year having a total of 50 days off.

6. Those engaged in occupations or jobs classified as heavy, hazardous, dangerous, or extremely heavy, hazardous, and dangerous in the list issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or working regularly in areas with regional allowances of 0.7 or higher and with 30 or more years of social insurance contributions, each year having a total of 70 days off.

Chapter II

CALCULATION METHODS FOR STREAMLINING ESTABLISHMENT POLICIES

Article 3. Monthly salary for calculating benefits

Clause 1. The monthly salary for calculating benefits is the monthly social insurance salary, including the salary according to rank, grade, position, title, plus leadership position allowances, seniority allowances exceeding the ceiling, occupational seniority allowances, and retained differential rates (if applicable), specifically as follows:

Point a. Salary according to rank, grade, position, title is calculated by multiplying the salary coefficient according to rank, grade, position, title with the minimum wage level (previously called the general minimum wage).

Point b. Leadership position allowance (if applicable) is calculated by multiplying the leadership position allowance coefficient with the minimum wage level.

Point c. Seniority allowance exceeding the ceiling (if applicable) is calculated by multiplying the percentage received with the final grade coefficient within the rank and then multiplying by the minimum wage level.

Point d. Occupational seniority allowance (if applicable) is calculated by multiplying the percentage received with the total of the salary coefficient according to rank, grade, position, title, leadership position allowance coefficient (if applicable), the percentage (according to coefficient) of seniority allowance exceeding the ceiling (if applicable), and then multiplying by the minimum wage level.

Point đ. Retained differential rate (if applicable) is calculated by multiplying the retained differential rate coefficient with the minimum wage level.

The salary coefficients according to rank, grade, position, title, and allowances for cadres, civil servants, and public officials are stipulated in the following documents: Decision No. 128-QD/TW dated December 14, 2004 of the Central Party Committee's Secretariat on salary system for cadres, civil servants, public officials of Party organizations, People's Front, and mass organizations; Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on salary system for cadres, civil servants, public officials, and armed forces (hereinafter referred to as Decree No. 204/2004/NĐ-CP); Decree No. 76/2009/NĐ-CP dated September 15, 2009 of the Government amending and supplementing some articles of Decree No. 204/2004/NĐ-CP and Decree No. 17/2013/NĐ-CP dated February 19, 2013 of the Government amending and supplementing some articles of Decree No. 204/2004/NĐ-CP; Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government on positions, number, some systems, and policies for cadres and civil servants at commune, ward, town levels and non-professional staff at commune level; Resolution No. 730/2004/NQ-UBTVQH11 dated September 30, 2004 of the Standing Committee of the National Assembly approving the salary table for positions, position allowance table for state leaders; salary table for specialized and vocational fields of the Court and Prosecution sectors; Resolution No. 823/2009/UBTVQH dated October 3, 2009 of the Standing Committee of the National Assembly amending and supplementing some articles of Resolution No. 730/2004/NQ-UBTVQH11; Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly approving the salary and position allowance table for National Audit Office leaders; salary and uniform allowance table for National Audit Office cadres and civil servants, preferential treatment for State Auditors.

For the subjects specified in Clause 4, Article 2 of Decree No. 108/2014/NĐ-CP, the salary coefficient is calculated according to the table of salary coefficients for professional management staff issued together with Decree No. 51/2013/NĐ-CP dated May 14, 2013 of the Government stipulating the salary, remuneration, and bonus system for members of the Board of Directors or Chairman of companies, Supervisors, General Directors or Directors, Deputy General Directors or Deputy Directors, Chief Accountants in limited liability companies wholly owned by the State; before May 1, 2013, it is calculated according to the table of salaries for professional Board of Directors members, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant issued together with Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the salary scale and allowance system in state-owned enterprises.

The minimum wage level for calculating benefits before May 1, 2010 was 650,000 VND; from May 1, 2010 to April 30, 2011 was 730,000 VND; from May 1, 2011 to April 30, 2012 was 830,000 VND; from May 1, 2012 to June 30, 2013 was 1,050,000 VND; from July 1, 2013 onwards is 1,150,000 VND. The minimum wage level in subsequent periods shall be stipulated by the Government.

Clause 2. The monthly salary serving as the basis for calculating benefits stipulated in Clause 1, Article 5, Clause 2, Article 6, Point b, Clause 1, Article 7, and Clause 4, Article 8 of this Joint Circular is calculated based on the average monthly social insurance salary stipulated in Clause 1 of this Article actually received at the agency, organization, or unit where they work during the last five years (60 months) prior to the reduction period. In cases where the service period is less than five years, the average monthly salary actually received during the entire service period will be considered.

Clause 3. The current monthly salary serving as the basis for calculating the benefits stipulated in Clause 1, Article 6, Point a, Clause 1, Article 7, and Clauses 1, 2, and 3, Article 8 of this Joint Circular is the salary of the month immediately preceding the reduction period.

Article 4. Calculation period for entitlements

1. The calculation period for entitlements is the time worked in Party agencies, State agencies, political-social organizations, public service units, state-owned enterprises, and associations that are eligible to receive social insurance benefits and have paid social insurance contributions (as recorded in each person's social insurance book), but have not yet received severance pay or one-time social insurance benefits or demobilization benefits. If the calculation period includes a fractional month, it shall be rounded off according to the principle that less than three months will not be counted; from three to six months inclusive, it counts as half a year; more than six months up to twelve months inclusive, it rounds off to one year.

Example 1: Mr. Nguyen Van A, aged 35, falls under the category of streamlined staffing, ceased work on February 1, 2015, with a working period of 9 years and 9 months of social insurance contributions, and currently enjoys a salary grade coefficient of 01.003, level 3 (3.00) from May 1, 2012.

- The monthly salary for calculating severance pay based on years of service for Mr. A is calculated as the average actual salary of the last five years (60 months) from February 1, 2010 to January 31, 2015.

- The evolution of the salary coefficient and the amount of salary according to the grade and level of Mr. A from February 1, 2010 to January 31, 2015 is as follows:

+ From February 1, 2010 to April 30, 2010 (3 months), the salary coefficient of grade 01.003, level 2 (2.67). The salary amount according to grade and level is VND 1,735,500.

+ From May 1, 2010 to April 30, 2011 (12 months), the salary coefficient of grade 01.003, level 2 (2.67). The salary amount according to grade and level is VND 1,949,100.

+ From May 1, 2011 to April 30, 2012 (12 months), the salary coefficient of grade 01.003, level 2 (2.67). The salary amount according to grade and level is VND 2,216,100.

+ From May 1, 2012 to June 30, 2013 (14 months), the salary coefficient of grade 01.003, level 3 (3.00). The salary amount according to grade and level is VND 3,150,000.

+ From July 1, 2013 to January 31, 2015 (19 months), the salary coefficient of grade 01.003, level 3 (3.00). The salary amount according to grade and level is VND 3,450,000.

- The average actual salary of the last five years (60 months) before streamlining is: (VND 1,735,500 x 3 months + VND 1,949,100 x 12 months + VND 2,216,100 x 12 months + VND 3,150,000 x 14 months + VND 3,450,000 x 19 months) / 60 = VND 2,747,315 per month.

The monthly salary for calculating severance pay based on the working period with social insurance contributions for Mr. A is VND 2,747,315.

- The number of years of social insurance contributions for calculating severance pay is rounded off to 10 years.

2. In cases where civil servants, employees, or officials commit crimes and are sentenced to imprisonment with suspended sentence or corrective labor without detention, but continue to be assigned work by their agency or unit, the working period with social insurance contributions during the execution of the sentence shall also be included in the working period for calculating entitlements.

3. The age at which the policy of retiring early is applied and the period of early retirement are calculated based on the date of birth.

Example 2:

a) Mr. Nguyen Van G, born on March 13, 1957, falls under the category of streamlined staffing, the date of streamlined staffing is March 1, 2015, with a social insurance contribution period of 25 years and 2 months. At the date of March 1, 2015, Mr. G was close to 58 years old, so Mr. G is entitled to the early retirement policy stipulated in Clause 2, Article 5 of this Joint Circular;

b) Ms. Nguyen Thi H, born on February 25, 1962, falls under the category of streamlined staffing, the date of streamlined staffing is March 1, 2015, with a social insurance contribution period of 23 years. At the date of March 1, 2015, Ms. H was over 53 years old, so Ms. H is entitled to the early retirement policy stipulated in Clause 4, Article 5 of this Joint Circular.

Article 5. Policy on early retirement

1. Those individuals falling under the reduction of staff quota as stipulated in Article 6 of Decree No. 108/2014/ND-CP, if they are aged between 50 to 53 for males and 45 to 48 for females, have contributed to social insurance for at least 20 years, including at least fifteen years working in hazardous, dangerous, or particularly hazardous and dangerous occupations listed by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or have worked for at least fifteen years in areas with a regional allowance coefficient of 0.7 or higher, shall be entitled to retirement benefits as prescribed by laws on social insurance without having their pension rate reduced due to early retirement. In addition, they shall also be entitled to the following benefits:

a) A lump sum payment of three months' salary for each year (full twelve months) of early retirement compared to the minimum age specified in Point b Clause 1 Article 50 of the 2006 Social Insurance Law, Point b Clause 1 Article 54 of the 2014 Social Insurance Law. In cases where the period of early retirement has a number of months that do not constitute a full year, the lump sum payment will be calculated as follows:

a.1. For a number of months from one month to six months, one month's salary will be paid;

a.2. For a number of months over six months but less than twelve months, two months' salary will be paid.

b) A lump sum payment of five months' salary for the first twenty years of service with full social insurance contributions;

c) A lump sum payment of half a month's salary for each year of service with social insurance contributions (full twelve months) starting from the twenty-first year onwards.

Example 3: Mr. Nguyen Van D, aged 52 years 2 months, falls within the scope of staff reduction, retired early from February 1, 2015, with a total of 28 years 2 months (20 years plus 8 years 2 months) of work contributing to social insurance, including 16 years working in Baolam district, Cao Bang province (an area with a regional allowance coefficient of 0.7), currently receiving a salary grade and level coefficient of 01.003, level 9 (4.98) since May 1, 2014.

- The monthly salary for calculating early retirement benefits for Mr. D is calculated based on the average actual salary of the last five years (60 months) from February 1, 2010 to January 31, 2015.

- The changes in salary coefficients and levels according to Mr. D's position from February 1, 2010 to January 31, 2015 are as follows:

+ From February 1, 2010 to April 30, 2010 (3 months), the salary coefficient for grade 01.003, level 7 (4.32). The salary level was 2,808,000 VND;

+ From May 1, 2010 to April 30, 2011 (12 months), the salary coefficient for grade 01.003, level 7 (4.32). The salary level was 3,153,600 VND;

+ From May 1, 2011 to April 30, 2012 (12 months), the salary coefficient for grade 01.003, level 8 (4.65). The salary level was 3,859,500 VND;

+ From May 1, 2012 to June 30, 2013 (14 months), the salary coefficient for grade 01.003, level 8 (4.65). The salary level was 4,882,500 VND;

+ From July 1, 2013 to April 30, 2014 (10 months), the salary coefficient for grade 01.003, level 8 (4.65). The salary level was 5,347,500 VND;

+ From May 1, 2014 to January 31, 2015 (9 months), the salary coefficient for grade 01.003, level 9 (4.98). The salary level was 5,727,000 VND.

- The average actual salary of the last five years (60 months) before reduction is: [2,808,000 VND x 3 months + 3,153,600 VND x 12 months + 3,859,500 VND x 12 months + 4,882,500 VND x 14 months + 5,347,500 VND x 10 months + 5,727,000 VND x 9 months] / 60 = 4,432,570 VND/month.

The monthly salary for calculating early retirement benefits for Mr. D is 4,432,570 VND.

- The rounded number of years of social insurance contributions for calculating benefits is 28 years.

- Mr. D retired early: 55 years old - 52 years 2 months = 2 years 10 months.

Two years of early retirement entitle him to a lump sum payment of: 2 x 3 = 6 months;

Ten months of early retirement entitle him to a lump sum payment of 2 months' salary.

- Mr. D is entitled to the following benefits:

+ Early retirement benefit as prescribed: (6 months + 2 months) x 4,432,570 VND = 35,460,560 VND;

+ Benefit for having contributed to social insurance for at least 20 years: 5 months x 4,432,570 VND = 22,162,850 VND;

+ Benefit for having contributed to social insurance for more than 20 years (8 years 2 months): 8 years x 1/2 x 4,432,570 VND = 17,730,280 VND.

The total amount of benefits Mr. D is entitled to is: 35,460,560 VND + 22,162,850 VND + 17,730,280 VND = 75,353,690 VND.

2. Individuals falling under the reduction of staff quota as stipulated in Article 6 of Decree No. 108/2014/ND-CP, if they are aged between 55 to 58 for males and 50 to 53 for females, have contributed to social insurance for at least 20 years, shall be entitled to retirement benefits as prescribed by laws on social insurance without having their pension rate reduced due to early retirement. In addition, they shall also be entitled to the benefits prescribed in Point b and c Clause 1 of this Article and a lump sum payment of three months' salary for each year of early retirement compared to the provisions in Point a Clause 1 Article 50 of the 2006 Social Insurance Law, Point a Clause 1 Article 54 of the 2014 Social Insurance Law. In cases where the period of early retirement has a number of months that do not constitute a full year, the lump sum payment will be calculated as prescribed in Point a Clause 1 of this Article.

Example 4: Mr. Nguyen Van B, aged 55 years 8 months, falls within the scope of staff reduction, retired early from February 1, 2015, with a total of 33 years 9 months (20 years plus 13 years 9 months) of work contributing to social insurance, currently receiving a salary grade and level coefficient of 13.091, level 3 (5.08) since May 1, 2014; position allowance coefficient 0.4 since July 1, 2013.

- The monthly salary for calculating early retirement benefits for Mr. B is calculated based on the average actual salary of the last five years (60 months) from February 1, 2010 to January 31, 2015.

- The changes in salary coefficients and levels according to Mr. B's position from February 1, 2010 to January 31, 2015 are as follows:

+ From February 1, 2010 to April 30, 2010 (3 months), the salary coefficient for grade 13.091, level 1 (4.40). The salary level was 2,860,000 VND;

+ From May 1, 2010 to April 30, 2011 (12 months), the salary coefficient for grade 13.091, level 1 (4.40). The salary level was 3,212,000 VND;

+ From May 1, 2011 to April 30, 2012 (12 months), the salary coefficient for grade 13.091, level 2 (4.74). The salary level was 3,934,200 VND;

+ As of May 1, 2012 to June 30, 2013 (14 months), the salary coefficient for rank 13.091, grade 2 (4.74). The monthly salary according to rank and grade is 4,977,000 VND;

+ As of July 1, 2013 to April 30, 2014 (10 months), the salary coefficient according to the position title of senior researcher, grade 2 (4.74), and the position allowance coefficient is 0.4. The monthly salary according to rank and grade is 5,911,000 VND;

+ As of May 1, 2014 to January 31, 2015 (9 months), the salary coefficient according to the position title of senior researcher, grade 3 (5.08), and the position allowance coefficient is 0.4. The monthly salary according to rank and grade is 6,302,000 VND.

- The average actual monthly salary of the last five years (60 months) before reduction is: [(2,860,000 VND x 3 months) + (3,212,000 VND x 12 months) + (3,934,200 VND x 12 months) + (4,977,000 VND x 14 months) + (5,911,000 VND x 10 months) + (6,302,000 VND x 9 months)] / 60 = 4,664,007 VND/month.

The monthly salary for calculating early retirement benefits for Mr. B is 4,664,007 VND.

- The number of years of social insurance contributions rounded off for calculating retirement benefits is 34 years.

- Mr. B retires early: 60 years old - 55 years 8 months = 4 years 4 months.

4 years of early retirement are entitled to 12 months of salary benefit: 4 x 3 = 12 months;

4 months of early retirement are entitled to 1 month of salary benefit.

- Mr. B is entitled to the following benefits:

+ Early retirement benefit: (12 months + 1 month) x 4,664,007 VND = 60,632,091 VND;

+ Benefit for having at least 20 years of social insurance contributions: 5 months x 4,664,007 VND = 23,320,035 VND;

+ Benefit for having more than 20 years of social insurance contributions (rounded off to 14 years): 14 years x 1/2 x 4,664,007 VND = 32,648,049 VND.

The total amount of retirement benefits that Mr. B will receive is: 60,632,091 VND + 23,320,035 VND + 32,648,049 VND = 116,600,175 VND.

3. Individuals who fall under the category of personnel reduction as stipulated in Article 6 of Decree No. 108/2014/NĐ-CP, if they are over 53 years old but under 55 years old for males, and over 48 years old but under 50 years old for females, with at least 20 years of social insurance contributions, including at least fifteen years working in heavy, toxic, dangerous, or particularly heavy, toxic, dangerous jobs listed by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or at least fifteen years working in areas with a regional allowance coefficient of 0.7 or higher, shall be entitled to retirement benefits as prescribed by laws on social insurance without being subject to a reduction in their pension due to early retirement.

4. Individuals who fall under the category of personnel reduction as stipulated in Article 6 of Decree No. 108/2014/NĐ-CP, if they are over 58 years old but under 60 years old for males, and over 53 years old but under 55 years old for females, with at least 20 years of social insurance contributions, shall be entitled to retirement benefits as prescribed by laws on social insurance without being subject to a reduction in their pension due to early retirement.

Article 6. Policy for transferring to work at organizations not receiving regular funding from the State budget

Individuals who fall under the category of personnel reduction as stipulated in Article 6 of Decree No. 108/2014/NĐ-CP, when transferring to work at organizations not receiving regular funding from the State budget, shall be entitled to the following benefits:

1. An allowance of three months' current salary.

2. They shall be entitled to half a month's salary for each year of service with social insurance contributions (at least 12 months).

Example 5: Mr. Nguyen Van A, aged 35, transferred to organizations not receiving regular funding from the State budget on February 1, 2015, has a total of 9 years and 9 months of social insurance contributions, and currently enjoys a salary coefficient of 3.00 according to rank 01.003, grade 3 from May 1, 2012.

- The current monthly salary is: 3.00 x 1,150,000 VND = 3,450,000 VND.

- The monthly salary for calculating severance pay based on the time of service with social insurance contributions for Mr. A, as per example 1, is: 2,747,315 VND.

- The number of years of social insurance contributions rounded off for calculating severance pay is 10 years.

- Mr. A is entitled to the following benefits:

+ Three months' current salary benefit: 3 months x 3,450,000 VND = 10,350,000 VND;

+ Benefit based on the time of service with social insurance contributions: 1/2 x 2,747,315 VND x 10 years = 13,736,575 VND.

The total amount of severance pay when Mr. A transfers to organizations not receiving regular funding from the State budget is: 10,350,000 VND + 13,736,575 VND = 24,086,575 VND.

Article 7. Policy for immediate resignation

1. Those individuals falling under the reduction of establishment staff as stipulated in Article 6 of Decree No. 108/2014/NĐ-CP who are under 53 years old for males and under 48 years old for females, and who do not meet the conditions to enjoy early retirement benefits as prescribed in Clause 1, Article 5 of this Joint Circular, if they immediately resign, shall be entitled to the following allowances:

a) A subsistence allowance of three months' current salary to find new employment;

b) An allowance of 1.5 months' salary for each year of service with social insurance contributions (at least 12 months).

2. Those individuals falling under the reduction of establishment staff as stipulated in Article 6 of Decree No. 108/2014/NĐ-CP who are under 58 years old for males and under 53 years old for females, and who do not meet the conditions to enjoy early retirement benefits as prescribed in Clause 2, Article 5 of this Joint Circular, if they immediately resign, shall be entitled to the allowances specified in Points a and b of Clause 1 of this Article.

Example 6: Ms. Nguyen Thi C, aged 47, a typist subject to reduction of establishment staff, was resolved to immediately resign from February 1, 2015, with her current salary grade coefficient of 2.76 based on Grade D civil servant, Typist rank, code 01.005, Level 8 (2.76) since May 1, 2013, having a period of work with social insurance contributions of 18 years and 9 months.

- The current monthly salary of Ms. C is: 2.76 x 1,150,000 VND = 3,174,000 VND.

- The monthly salary for calculating the severance allowance based on the time worked with social insurance contributions for Ms. C is calculated as the average monthly salary according to the actual grade and level over the last five years (60 months), from February 1, 2010 to January 31, 2015.

- The evolution of the salary coefficient and the salary level according to the grade and level of Ms. C from February 1, 2010 to January 31, 2015 is as follows:

+ From February 1, 2010 to April 30, 2010 (3 months), the salary coefficient of Typist grade C2, Level 6 (2.40). The salary level according to the grade and level is 1,560,000 VND;

+ From May 1, 2010 to April 30, 2011 (12 months), the salary coefficient of Typist grade C2, Level 6 (2.40). The salary level according to the grade and level is 1,752,000 VND;

+ From May 1, 2011 to April 30, 2012 (12 months), the salary coefficient of Typist grade C2, Level 7 (2.58). The salary level according to the grade and level is 2,141,400 VND;

+ From May 1, 2012 to April 30, 2013 (12 months), the salary coefficient of Typist grade C2, Level 7 (2.58). The salary level according to the grade and level is 2,709,000 VND;

+ From May 1, 2013 to June 30, 2013 (2 months), the salary coefficient of Typist grade C2, Level 8 (2.76). The salary level according to the grade and level is 2,898,000 VND;

+ From July 1, 2013 to January 31, 2015 (19 months), the salary coefficient of Typist grade C2, Level 8 (2.76). The salary level according to the grade and level is 3,174,000 VND.

- The average monthly salary of the last five years (60 months) before reduction is: [(1,560,000 VND x 3 months) + (1,752,000 VND x 12 months) + (2,141,400 VND x 12 months) + (2,709,000 VND x 12 months) + (2,898,000 VND x 2 months) + (3,174,000 VND x 19 months)] / 60 = 2,500,180 VND/month.

The monthly salary for calculating the severance allowance based on the time worked with social insurance contributions for Ms. C is: 2,500,180 VND.

- The number of years of social insurance contributions rounded off for calculating the allowance is 19 years.

- Ms. C is entitled to the following allowances:

+ Job-seeking allowance: 3 x 3,174,000 VND = 9,522,000 VND;

+ Severance allowance: 1.5 x 2,500,180 VND x 19 years = 71,255,130 VND.

The total amount Ms. C will receive upon resignation is: 9,522,000 VND + 71,255,130 VND = 80,777,130 VND.

Article 8. Policy on cessation of employment after vocational training

Those individuals who fall under the category of streamlined staffing as stipulated in Article 6 of Decree No. 108/2014/NĐ-CP, aged under 45 years old, in good health, with a sense of responsibility and organizational discipline, and willing to undergo vocational training to seek new employment, shall be entitled to the following benefits:

1. They shall continue to receive their current monthly salary and have their social insurance and medical insurance premiums paid by their agency or unit during the period of vocational training, but the maximum duration for such benefits is six months.

2. To receive a vocational training allowance equivalent to the cost of a maximum six-month training course based on their current salary to pay for the vocational training institution.

3. After completing the vocational training, they will receive a three-month salary allowance at the time of enrollment to find new employment.

4. To receive a severance allowance of half a month's salary for each year of service with social insurance contributions (at least 12 months).

5. The period of vocational training shall be counted as continuous service but shall not be counted towards seniority for annual salary increments.

Example 7: Mr. Nguyen Van Q, aged 35, has a coefficient salary grade 01.003, level 3 (3.00) from May 1, 2013, with 8 years and 9 months of social insurance contributions. Mr. Q falls under the category of streamlined staffing but wishes to undergo vocational training for five months starting from February 1, 2015, with a training fee of 9,000,000 VND. Upon completion of training on July 1, 2015, Mr. Q was granted cessation of employment.

- The current monthly salary is: 3.00 x 1,150,000 VND = 3,450,000 VND.

- The monthly salary for calculating the severance allowance based on years of service for Mr. Q is calculated as the average actual salary of the last five years (60 months) from July 1, 2010 to June 30, 2015.

- The evolution of the salary coefficient and the salary level according to grade and level of Mr. Q from July 1, 2010 to June 30, 2015 is as follows:

+ From July 1, 2010 to April 30, 2011 (10 months), the salary coefficient for grade 01.003 level 2 (2.67). The salary level according to grade and level is 1,949,100 VND;

+ From May 1, 2011 to April 30, 2012 (12 months), the salary coefficient for grade 01.003 level 2 (2.67). The salary level according to grade and level is 2,216,100 VND;

+ From May 1, 2012 to April 30, 2013 (12 months), the salary coefficient for grade 01.003 level 2 (2.67). The salary level according to grade and level is 2,803,500 VND;

+ From May 1, 2013 to June 30, 2013 (2 months), the salary coefficient for grade 01.003 level 3 (3.0). The salary level according to grade and level is 3,150,000 VND;

+ From July 1, 2013 to June 30, 2015 (24 months), the salary coefficient for grade 01.003 level 3 (3.0). The salary level according to grade and level is 3,450,000 VND.

- The actual salary of the last five years (60 months) before being streamlined is: (1,949,100 VND x 10 months + 2,216,100 VND x 12 months + 2,803,500 VND x 12 months + 3,150,000 VND x 2 months + 3,450,000 VND x 24 months)/60 = 2,813,770 VND.

- The number of years of social insurance contributions for calculating the severance allowance is 8 years and 9 months plus 5 months of vocational training, totaling 9 years and 2 months, rounded to 9 years.

- Mr. Q is entitled to the following allowances:

+ To receive five months' salary during the vocational training period: 5 x 3,450,000 VND = 17,250,000 VND;

+ An allowance of 9,000,000 VND to cover the vocational training fees;

+ After completing the vocational training, Mr. Q will receive:

Three months' salary to find new employment: 3 months x 3,450,000 VND = 10,350,000 VND;

A severance allowance based on years of service with social insurance contributions: 1/2 x 2,813,770 VND x 9 years = 12,661,965 VND.

Article 9. Policy for those ceasing to hold leadership positions or being appointed to new positions with lower leadership allowances due to organizational restructuring

Cadres, civil servants, and public officials who cease to hold leadership positions or are appointed to new positions with lower leadership allowances due to organizational restructuring shall retain their current leadership allowances until the end of their appointment term or election term. In cases where the remaining term of the appointment or election is less than six months, the retention period shall be six months.

Chapter III

SOURCE OF FUNDS, MANAGEMENT OF FUNDS AND SETTLEMENT

Section 1

SOURCE OF FUNDS FOR IMPLEMENTING THE POLICY ON STAFF STREAMLINING

Article 10. Budget for implementing reduction policies in the staffing structure in Party and State agencies, political and social organizations from central to commune levels

The budget for implementing reduction policies for cadres, civil servants, and indefinite-term labor contract employees as stipulated in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on implementing certain types of employment contracts in administrative state agencies and public service units (hereinafter referred to as Decree No. 68/2000/NĐ-CP) in Party and State agencies, political and social organizations from central to commune levels shall be implemented as follows:

1. Agencies and units shall use the annual state budget allocation or retained income of the unit according to regulations (for units with income) to pay the following benefits:

a) A one-time allowance equivalent to three months' current salary for the subjects specified in Clause 1, Article 6, Point a, Clause 1, Article 7, and Clause 3, Article 8 of this Joint Circular;

b) Support for social insurance and health insurance contributions for those within the reduction policy age range who wish to attend vocational training before being officially relieved of their duties as stipulated in Clause 1, Article 8 of this Joint Circular;

c) Continue paying salaries during the period of vocational training and providing a vocational training allowance for individuals within the age range who are provided opportunities for vocational training as stipulated in Clause 1 and 2, Article 8 of this Joint Circular.

2. The State budget will supplement additional funds to implement the remaining benefits.

Article 11. Budget for implementing reduction policies in public service units

The budget for implementing reduction policies for cadres, civil servants, public officials, and indefinite-term labor contract employees as stipulated in Decree No. 68/2000/NĐ-CP in public service units shall be implemented as follows:

1. For public service units that self-fund regular operating expenses: Use income and other legitimate sources of funding of the unit to implement reduction policies as prescribed in this Joint Circular.

For public service units that self-fund regular operating expenses and investment costs; public service units that self-fund regular operating expenses (as classified under Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government on the mechanism of autonomy for public service units and other decrees on the mechanism of autonomy for public service units in specialized fields): Use income and other legitimate sources of funding of the unit to implement reduction policies as prescribed in this Joint Circular.

2. For the remaining public service units, implementation shall be as follows:

a) Funding to implement reduction policies for cadres, civil servants, and public officials as stipulated in Clause 1 and 2, Article 2 of Decree No. 108/2014/NĐ-CP:

- Units shall use their own income, annual state budget allocation (if any), and other legitimate sources of funding to pay the following benefits:

+ A one-time allowance equivalent to three months' current salary for the subjects specified in Clause 1, Article 6, Point a, Clause 1, Article 7, and Clause 3, Article 8 of this Joint Circular.

+ Support for social insurance and health insurance contributions for those within the reduction policy age range who wish to attend vocational training before being officially relieved of their duties as stipulated in Clause 1, Article 8 of this Joint Circular.

+ Continue paying salaries during the period of vocational training and providing a vocational training allowance for individuals within the age range who are provided opportunities for vocational training as stipulated in Clause 1 and 2, Article 8 of this Joint Circular.

- The State budget will supplement additional funds to implement the remaining benefits.

b) Units shall use funds from the State budget allocated for unit operations and income to implement reduction policies for indefinite-term labor contract employees as stipulated in Decree No. 68/2000/NĐ-CP.

Article 12. Funding for implementing the reduction of establishment posts policy for other cases

1. Workers who were first recruited by public service units from October 29, 2003 onwards, and fall under the reduction of establishment posts policy as stipulated in Point c, d Clause 1 Article 6 Decree No. 108/2014/ND-CP shall have their funding for implementing the reduction of establishment posts policy sourced from the regular budget of the public service unit.

2. Funding to resolve the reduction of establishment posts policy for those working within the establishment posts assigned by state agencies with authority as prescribed in Clause 6 Article 6 Decree No. 108/2014/ND-CP shall be sourced from the operating budget of the association (including both the state budget allocation and legitimate income of the association).

3. Funding to resolve the reduction of establishment posts policy for cadres, civil servants, public officials, and indefinite-term labor contracts for certain positions as prescribed by law working in the Vietnam General Confederation of Labor shall be sourced from the 2% union budget.

4. Funding to resolve the reduction of establishment posts policy for the subjects specified in Clause 4, 5 Article 6 Decree No. 108/2014/ND-CP shall be sourced from the Fund for Supporting Redundant Labor due to the reorganization of state-owned enterprises as prescribed by law.

Article 13. Sources of funding for implementing the reduction of establishment posts according to the current budget classification

1. For cadres, civil servants, public officials, and indefinite-term labor contracts as prescribed in Decree No. 68/2000/ND-CP managed centrally by the central government, the central budget shall ensure the funding.

2. For cadres, civil servants, public officials, and indefinite-term labor contracts as prescribed in Decree No. 68/2000/ND-CP managed locally, the local budget shall ensure the funding according to the current budget classification.

The central budget will support localities receiving additional balance from the central budget 100% of the funding needs for reducing establishment posts supplemented by the state budget.

Section 2

 ESTABLISHING, IMPLEMENTING AND SETTLING THE BUDGET FROM THE STATE BUDGET

Article 14. Establishing, implementing the budget

1. For localities that self-fund the reduction of establishment posts, they shall implement payments to the reduced establishment post subjects according to the regulations stipulated in Decree No. 108/2014/ND-CP and this Circular, while reporting the implementation results according to Form 3, 4 attached to this Circular to the Ministry of Home Affairs and the Ministry of Finance.

2. For Ministries, agencies at the level of ministries, agencies under the Government, and other central and local agencies that cannot self-fund the reduction of establishment posts, based on the provisions in Decree No. 108/2014/ND-CP and the guidance in this Circular, they shall instruct the Personnel Department (or Bureau), the Planning and Finance Department (for Ministries, agencies at the level of ministries, and other central agencies), the Provincial Department of Home Affairs, and the Provincial Department of Finance (for provinces and centrally-administered cities) to compile lists of reduced establishment post subjects, calculate the amount of money to settle the policies; simultaneously, aggregate the number of reduced establishment post subjects, prepare a budget estimate for settling the policies according to Form 1a, 1b, 1c, 1d, 2, and send a letter to the Ministry of Home Affairs and the Ministry of Finance. Based on these reports, the Ministry of Home Affairs shall review and provide comments in writing to the Ministry of Finance to supplement the budget (for Ministries, agencies at the level of ministries, and other central agencies) or temporarily allocate the budget (for localities supported by the central budget) to implement the reduction of establishment posts.

Article 15. Settlement

Within 15 working days from the date of receipt of the notification to supplement or temporarily allocate the budget for implementing the reduction of establishment posts, Ministries, sectors, and localities shall organize the payment of policies and benefits to the reduced establishment post subjects of their own Ministries, sectors, and localities. At the end of the payment period, they must consolidate and settle the budget according to Form 5 and send it to the Ministry of Finance. In case there is a shortage compared to the supplemented or temporarily allocated amount, it will be supplemented. In case there is an excess compared to the supplemented or temporarily allocated amount, it will be deducted from the next allocation of the reduction of establishment posts budget or refunded to the central budget.

The funding for resolving the policies of the reduction of establishment posts mentioned above must be consolidated into the annual financial report of the agency or unit in accordance with the provisions of the State Budget Law, Accounting Law, and guiding documents.

Chapter IV

IMPLEMENTATION

Article 16. Implementation Organization

1. The head of the agency, organization, or unit using cadres, civil servants, public officials, and indefinite-term labor contracts as prescribed shall be responsible for organizing and implementing the reduction of establishment posts in accordance with the principles and procedures stipulated in Article 4, 14 of Decree No. 108/2014/ND-CP.

2. Responsibilities of the Minister, head of the agency at the level of ministries, agency under the Government, organization established by the Government, Prime Minister which is not a public service unit, and Chairman of the People's Committee of province, centrally-administered city:

a) Develop plans for the reduction of establishment posts annually and over seven years, and organize their implementation, including determining the reduction ratio of establishment posts to reach at least 10% of the establishment posts assigned in 2015 by the Ministry, sector, or locality by 2021;

b) Organize the dissemination and implementation of the reduction of establishment posts policy stipulated in Decree No. 108/2014/ND-CP and guiding documents to cadres, civil servants, public officials, and workers under their management;

c) Direct and guide subordinate agencies, organizations, and units to implement the reduction of establishment posts;

d) Approve the reduction of establishment posts proposals of subordinate agencies, organizations, and units;

đ) Compile lists of reduced establishment post subjects and budget estimates for implementing the reduction of establishment posts of their own Ministries, sectors, or localities according to Form 1a, 1b, 1c, 1d, 2, and submit them to the Ministry of Home Affairs and the Ministry of Finance for review and allocation of the budget for implementing the reduction of establishment posts according to the time limit stipulated in Article 16 of Decree No. 108/2014/ND-CP;

e) Annually on December 31, compile the results, assess the implementation of staff reduction of their ministry, sector, or locality according to Table 3; compile the number of officials, civil servants, public employees, and workers who have retired at the legal age or resigned according to the law of their ministry, sector, or locality according to Table 4, and send them to the Ministry of Home Affairs and the Ministry of Finance for consolidation and reporting to the Prime Minister.

3. Responsibilities of the Department or Personnel and Organizational Affairs Unit of ministries, agencies equivalent to ministries, government agencies, organizations established by the Government or the Prime Minister that are not public service units, and Departments of Home Affairs of provinces and centrally governed cities:

a) Take the lead and coordinate with the financial agency at the same level (the Financial Department at the central level, the Department of Finance at the local level), the Social Insurance on the territory to guide agencies, organizations, and units under the management authority of their ministry, sector, or locality to implement in accordance with Decree No. 108/2014/ND-CP of the Government and the guidance provided in this Joint Circular;

b) Guide and inspect agencies, organizations, and units subordinate to their ministry, sector, or locality to develop staff reduction plans and establish lists of staff reduction targets;

c) Review staff reduction plans of agencies, organizations, and units subordinate to their ministry, sector, or locality;

d) Review and establish lists of staff reduction targets of their ministry, sector, or locality. In case of incorrect review of staff reduction policy targets, in addition to disciplinary action, they must also compensate for the funds spent on implementing the staff reduction policy in accordance with the law;

e) Organize inspections and audits within their authority (if applicable) regarding the implementation by agencies, organizations, and units;

4. Responsibilities of the Ministry of Home Affairs

a) Review staff reduction targets based on the list of staff reduction targets sent by ministries, sectors, or localities, and provide comments in writing to the Ministry of Finance to temporarily allocate funds to resolve staff reduction policies for ministries, sectors, or localities within the time limit specified in Clause 3, Article 20 of Decree No. 108/2014/ND-CP;

b) Urge, audit, and inspect the implementation of staff reduction in accordance with Decree No. 108/2014/ND-CP;

c) Based on the results of staff reduction implementation and retirement or resignation policies of ministries, sectors, or localities each year, review and consolidate the staffing of officials and civil servants and the number of people working in public service units of ministries, sectors, or localities for the following year;

d) Report annually to the Prime Minister on the implementation of staff reduction within the time limit specified in Clause 4, Article 20 of Decree No. 108/2014/ND-CP.

5. Responsibilities of the Ministry of Finance

a) Allocate funds to implement staff reduction in accordance with Decree No. 108/2014/ND-CP;

b) Review the calculation of policies and benefits, budget estimates for staff reduction implementation, and fund disbursement for ministries, sectors, or localities to implement staff reduction within the time limit specified in Clause 3, Article 21 of Decree No. 108/2014/ND-CP.

6. The Vietnam Social Security has the responsibility to direct and guide business operations for provincial social insurances under centrally governed cities in receiving files and resolving social insurance policies and benefits for cases of staff reduction in accordance with Decree No. 108/2014/ND-CP.

Article 17. Implementation Provisions

1. This Joint Circular takes effect from May 30, 2015, and remains valid until December 31, 2021. The policies and benefits stipulated in this Joint Circular shall be enjoyed starting from January 10, 2015.

2. During the implementation period, if there are any difficulties, please reflect them to the Ministry of Home Affairs and the Ministry of Finance for research and resolution./.