Joint Circular No. 02/2007/TTLT-BNV-BTC guides the implementation of Decree No. 132/2007/NĐ-CP dated August 8, 2007 on policies for streamlining the establishment.

JOINT CIRCULAR

GUIDELINES FOR IMPLEMENTING THE GOVERNMENT DECREE NO. 132/2007/NĐ-CP ON AUGUST 8, 2007 REGARDING POLICIES TO SIMPLIFY STAFFING

_______________

Pursuant to Government Decree No. 132/2007/NĐ-CP dated August 8, 2007 on policies to simplify staffing; the Ministry of Home Affairs and the Ministry of Finance provide guidance on certain specific points as follows:

I. GENERAL PROVISIONS

1. Objectives and Scope of Application of Staffing Simplification Policies

Civil servants, public officials, and employees in state administrative agencies and public service units from central to district levels; certain management positions in state-owned companies undergoing privatization, transfer, sale, merger, consolidation, dissolution, bankruptcy, or conversion into limited liability companies under the Law on Enterprises 2005; and in state-owned agricultural and forestry farms being restructured according to the law are subject to staffing simplification policies, including:

a) Persons who are surplus due to organizational restructuring pursuant to decisions of competent state authorities or by public service units restructuring their organizations and staffing to implement self-management and self-responsibility for tasks, organization, staffing, and finance but cannot be reassigned to other suitable positions within the agency or unit;

b) Those who cease holding leadership positions, including elected and appointed officials, due to organizational restructuring or non-re-election but have not yet reached retirement age and cannot be reassigned to new positions;

c) Civil servants, public officials, and employees who do not meet the required qualifications for their current positions as stipulated by regulations but cannot be reassigned to other suitable positions and cannot be trained to meet the qualification standards; those who are surplus due to unreasonable staffing structures in agencies and units and cannot be reassigned to other positions;

d) Individuals who fail to complete assigned tasks over two consecutive recent years due to weak professional skills or poor health or lack of responsibility, organizational discipline, but have not reached the level requiring termination of employment as assessed by the competent authority managing civil servants, public officials, and employees;

đ) Members of the Board of Directors, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, members of the Supervisory Board of state-owned companies undergoing privatization, transfer, sale, merger, consolidation, dissolution, bankruptcy, or conversion into limited liability companies under the Law on Enterprises 2005; Directors, Deputy Directors, Chief Accountants of state-owned agricultural and forestry farms being restructured according to Government Decree No. 170/2004/NĐ-CP dated September 22, 2004 on restructuring, reform, and development of state-owned agricultural farms, Government Decree No. 200/2004/NĐ-CP dated December 3, 2004 on restructuring, reform, and development of state-owned forestry farms, approved by competent state authorities, listed in the plan for resolving surplus labor, and not continuing to work at the enterprise, agricultural, or forestry farm or in other state administrative agencies, public service units, or state-owned enterprises;

Management positions in enterprises, agricultural, and forestry farms mentioned in this point if decided by the competent authority to be members of the liquidation board of the enterprise, after the liquidation board dissolves and cannot be reassigned to other positions, shall also be subject to the staffing simplification policy stipulated in this Circular.

2. Subjects Not Subject to Staffing Simplification Policies

The following cases are not subject to staffing simplification policies:

a) Those currently undergoing treatment or convalescence at hospitals with confirmation from the hospital director;

b) Those currently under disciplinary review or criminal investigation;

c) Women who are pregnant or nursing children under 12 months old.

3. Subjects Not Eligible for Staffing Simplification Policies

a) Individuals who voluntarily leave their jobs without permission for more than 30 days to study or work abroad;

b) Civil servants, public officials, and employees not within the scope of staffing simplification but voluntarily retire early, resign, or transfer to organizations not funded regularly from the state budget due to personal needs;

c) Civil servants, public officials, and employees disciplined with dismissal;

4. Policies and Calculation Basis and Methods

Policies and calculation basis and methods for resolving benefits for civil servants, public officials, and employees subject to staffing simplification shall be implemented according to the guidelines of this Circular and shall not apply policies, calculation bases, and methods stipulated in other documents.

II. CALCULATION BASIS FOR SUBSIDIES FOR SUBJECTS OF STAFFING SIMPLIFICATION

1. Salary

a) Monthly salary includes salary based on rank and grade; allowances for leadership positions, seniority allowances exceeding the standard, occupational seniority allowances, and retained differential amounts (if applicable)

Where:

- The salary according to rank and grade is the salary coefficient according to rank and grade multiplied by the minimum wage rate;

- Leadership position allowance is the leadership position coefficient (if any) multiplied by the minimum wage rate;

- Seniority allowance exceeding the standard is the percentage rate (if applicable) multiplied by the total of the salary coefficient based on rank and grade, leadership position allowance coefficient (if applicable), seniority allowance exceeding the standard percentage rate (if applicable), and multiplied by the minimum wage;

- Retained differential amount equals the retained differential coefficient multiplied by the minimum wage;

- The salary coefficient and salary allowances before October 1, 2004 shall be calculated according to the salary coefficient and allowance provisions set forth in Decree No. 25/CP dated May 23, 1993 of the Government on the temporary regulations for the new salary system for civil servants, administrative officials, and armed forces personnel, and Decree No. 26/CP dated May 23, 1993 of the Government on the temporary regulations for the new salary system in enterprises, Resolutions of the Standing Committee of the National Assembly, Decisions of the Central Party Secretariat, and Decisions of the Prime Minister regarding the salary system effective prior to October 1, 2004; from October 1, 2004 onwards, they shall be calculated according to the salary coefficient and allowance provisions stipulated in Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for cadres, civil servants, administrative officials, and armed forces personnel, and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government on the wage scale, salary table, and allowance system in state-owned companies, Resolutions of the Standing Committee of the National Assembly, Decisions of the Central Party Secretariat, and Decisions of the Prime Minister regarding the salary system effective from October 4, 2004.

The general minimum wage for calculating benefits for the period before January 1, 2003 was 210,000 VND; for the period from January 1, 2003 to September 30, 2005 was 290,000 VND; for the period from October 1, 2005 to September 30, 2006 was 350,000 VND; for the period from October 1, 2006 until the next minimum wage adjustment was 450,000 VND. The general minimum wage for calculating benefits for surplus cadres, civil servants, and administrative officials in subsequent periods shall be determined by the Government.

b) The monthly salary serving as the basis for calculating the allowances prescribed in Clause 1, Point b, Clause 2, 3, and Point d Clause 4 Section III shall be calculated based on the average monthly actual salary of the last five years (60 months) prior to downsizing. In cases where the service period is less than five years, the average monthly actual salary of the entire service period shall be used.

c) The current monthly salary is the salary of the month immediately preceding the date of the reduction in staff.

2. Period for receiving allowances

a) The number of years of service for calculating allowances is the number of years eligible for social insurance benefits and the number of years with social insurance contributions (as recorded in each person's social insurance book). If there are fractional months in the social insurance contribution period, they will be rounded off according to the principle that less than three months will not be counted; from three months up to six months will be counted as half a year; from more than six months up to twelve months will be counted as one full year.

b) In cases where cadres, civil servants, and administrative officials commit crimes and are sentenced to imprisonment with suspended sentence or non-custodial correctional work but continue to be assigned work by their agencies or units, the working time during which they have social insurance contributions while serving their sentences shall also be counted towards their service period for allowance purposes.

Example 1:Mr. Nguyen Van A, aged 35, falls under the category of downsized personnel, ceased employment on September 1, 2007, has a social insurance contribution period of eight years and eight months, and currently enjoys a salary grade coefficient of code 01.003, grade 3 (3.00) from January 1, 2006.

The monthly salary for calculating the severance allowance based on years of service for Mr. A is calculated as the average actual monthly salary of the last five years (60 months) from September 1, 2002 to September 1, 2007.

The evolution of the salary coefficient according to the grade and the general minimum wage of Mr. A from September 1, 2002 to September 1, 2007.

- From September 1, 2002 to December 31, 2002 (four months), the salary coefficient of grade code 01.003, grade 1 (1.86), the general minimum wage was 210,000 VND.

- From January 1, 2003 to September 30, 2004 (twenty-one months), the salary coefficient of grade code 01.003, grade 2 (2.1), the general minimum wage was 290,000 VND.

- From October 1, 2004 to September 30, 2005 (twelve months), the salary coefficient of grade code 01.003, grade 2 (2.67), the general minimum wage was 290,000 VND.

- From October 1, 2005 to December 31, 2005 (three months), the salary coefficient of grade code 01.003, grade 2 (2.67), the general minimum wage was 350,000 VND.

- From January 1, 2006 to September 30, 2006 (nine months), the salary coefficient of grade code 01.003, grade 3 (3.00), the general minimum wage was 350,000 VND.

- From October 1, 2006 to September 1, 2007 (eleven months), the salary coefficient of grade code 01.003, grade 3 (3.00), the general minimum wage was 450,000 VND.

The average actual monthly salary of the last five years (sixty months) before downsizing is: [(1.86 x 210,000 VND x four months) + (2.1 x 290,000 VND x twenty-one months) + (2.67 x 290,000 VND x twelve months) + (2.67 x 350,000 VND x three months) + (3.00 x 350,000 VND x nine months) + (3.00 x 450,000 VND x eleven months)] / sixty = 845,775 VND/month.

Therefore, the monthly salary for calculating the severance allowance based on years of service for Mr. A is 845,775 VND.

The number of years of social insurance contributions for calculating allowances is rounded to nine years.

3. The date of commencement of monthly pension benefits for individuals specified in Point c Clause 1 Section III of this Circular shall be the month immediately following the month in which they complete twenty years of social insurance contributions.

Example 2:Mr. Nguyen Van G, aged 59, has 19 years and seven months of social insurance contributions (as of November 30, 2007), falls under the category of downsized personnel from December 1, 2007, and his agency or unit paid social insurance contributions for five additional months from December 2007 to April 2008 to make up for the shortfall to reach twenty years. Mr. G began receiving his pension from May 1, 2008.

III. SPECIFIC METHODS FOR CALCULATING THE POLICIES OF STAFF REDUCTION

1. Policies for those retiring early

a) Individuals who fall under the category of staff reduction and are between the ages of 55 and 59 for men and 50 and 54 for women, and have at least twenty years of social insurance contributions, shall be entitled to retire according to the laws on social insurance without having their pension reduced due to early retirement. In addition to the retirement benefits provided by the social insurance laws, they shall also receive the following three additional allowances:

- They shall receive a three-month salary allowance for each year (full twelve months) of early retirement. For cases where the early retirement period includes fractional months not constituting a full year, the allowance shall be calculated as follows:

+ Fractional months up to six months inclusive shall be compensated with one month's salary;

+ Fractional months over six months up to twelve months shall be compensated with two months' salary.

- Entitled to a subsistence allowance for five months' salary for the first twenty years of service with full social insurance contributions;

- Entitled to a subsistence allowance of half a month's salary for each year of service with social insurance contributions (at least twelve months) starting from the twenty-first year of social insurance contributions;

Example 3:Mr. Nguyen Van B, aged fifty-six years and seven months, is part of the workforce reduction program and retired early as of August 1, 2007, with a total of thirty-three years and two months of social insurance contributions (twenty years plus thirteen years and two months); his current grade and rank coefficient according to code 01.002, grade 3 (5.08) since October 1, 2005; position allowance coefficient of 0.4 since January 1, 2005.

The monthly salary for calculating the early retirement allowance for Mr. B is calculated based on the average actual monthly salary of the last five years (sixty months) from August 1, 2002 to August 1, 2007.

The evolution of the salary coefficient according to grade, rank, position allowance, and the general minimum wage of Mr. B from August 1, 2002 to August 1, 2007 is as follows:

- From August 1, 2002 to September 30, 2002 (two months), the salary coefficient of grade 01.002, rank 1 (3.35), the general minimum wage was 210,000 VND

- From October 1, 2002 to December 31, 2002 (three months), the salary coefficient of grade 01.002, rank 2 (3.63), the general minimum wage was 210,000 VND

- From January 1, 2003 to September 30, 2004 (twenty-one months), the salary coefficient of grade 01.002, rank 2 (3.63), the general minimum wage was 290,000 VND

- From October 1, 2004 to September 30, 2005 (twelve months), the salary coefficient of grade 01.002, rank 2 (4.74), the general minimum wage was 290,000 VND

- From October 1, 2005 to September 30, 2006 (twelve months), the salary coefficient of grade 01.002, rank 3 (5.08), position allowance coefficient 0.4, the general minimum wage was 350,000 VND

- From October 1, 2006 to August 1, 2007 (ten months), the salary coefficient of grade 01.002, rank 3 (5.08), position allowance coefficient 0.4, the general minimum wage was 450,000 VND

The average actual monthly salary of the last five years (sixty months) before workforce reduction is:

[(3.35 x 210,000 VND x 2 months) + (3.63 x 210,000 VND x 3 months) + (3.63 x 290,000 VND x 21 months) + (4.74 x 290,000 VND x 12 months) + ((5.08 + 0.4) x 350,000 VND x 12 months) + ((5.08 + 0.4) x 450,000 VND x 10 months)] / 60 = 1,499,350 VND/month

Therefore, the monthly salary for calculating the early retirement allowance for Mr. B is 1,499,350 VND

The number of years of social insurance contributions rounded for calculating the allowance is thirty-three years.

Mr. B retired early: 60 years - 56 years 7 months = 3 years 5 months

Thus, Mr. B is entitled to the following allowances:

- Allowance for early retirement:

[(3 years x 3 months) + 1 month] x 1,499,350 VND = 14,993,500 VND

- Allowance for having at least twenty years of social insurance contributions is:

5 months x 1,499,350 VND = 7,496,750 VND

- Allowance for having more than twenty years of social insurance contributions (thirteen years eight months) is:

13 years x ½ x 1,499,350 VND = 9,745,775 VND

The total amount of allowance that Mr. B will receive is:

14,993,500 VND + 7,496,750 VND + 9,745,775 VND = 32,236,025 VND

b) Subjects of workforce reduction as stipulated in point d clause 1 section I of this Circular, if they are male aged between fifty-five and sixty years old, or female aged between fifty and fifty-five years old, and have at least twenty years of social insurance contributions, shall be entitled to benefits and policies as specified in point a clause of this provision;

c) Subjects of workforce reduction as stipulated in points a and b of this clause, if they have at least nineteen years and six months but less than twenty years of social insurance contributions, their agencies or units will pay once the remaining months into the pension and death benefit fund at the level of the total contribution of the employee and employer prior to workforce reduction, to resolve the pension policy according to the laws on social insurance without being deducted from the pension due to retiring early. In addition to enjoying the pension policy according to the laws on social insurance, they also enjoy additional allowances as specified in point a of this clause.

The specific amount contributed by agencies or units into the pension and death benefit fund is as follows:

- For subjects who were reduced from the workforce on or before December 31, 2009, their agencies or units will contribute once into the pension and death benefit fund at the following rate:

- For subjects who were reduced from the workforce from January 1, 2010 to December 31, 2011, their agencies or units will contribute once into the pension and death benefit fund at the following rate:

Example 4:Mr. Le Van C, aged fifty-eight, was reduced from the workforce as of September 1, 2007, has a grade and rank coefficient according to code 01.003, grade 6 of 3.99 from February 1, 2005, but he only made social insurance contributions for nineteen years and seven months.

The agency or unit will contribute once into the pension and death benefit fund for the five remaining months to make up twenty years (from September 2007 to January 2008) to resolve the pension policy for Mr. C, at the following rate:

5 months x 3.99 x 450,000 VND x 16% = 1,436,400 VND

The monthly salary for calculating the early retirement allowance for Mr. C is calculated based on the average monthly salary of the last five years (sixty months) from September 1, 2002 to September 1, 2007.

The evolution of the salary coefficient according to grade, rank, and the general minimum wage of Mr. C from September 1, 2002 to September 1, 2007 is as follows:

- From September 1, 2002 to December 31, 2002 (four months), the salary coefficient of grade 01.003, rank 5 (2.82), the general minimum wage was 210,000 VND

- From January 1, 2003 to September 30, 2004 (twenty-one months), the salary coefficient of grade 01.003, rank 5 (2.82), the general minimum wage was 290,000 VND

- From October 1, 2004 to January 30, 2005 (four months), the salary coefficient of grade 01.003, rank 5 (3.66), the general minimum wage was 290,000 VND

- From February 1, 2005 to September 30, 2005 (eight months), the salary coefficient of grade 01.003, rank 6 (3.99), the general minimum wage was 290,000 VND

- From October 1, 2005 to September 30, 2006 (twelve months), the salary coefficient of grade 01.003, rank 6 (3.99), the general minimum wage was 350,000 VND

- From October 1, 2006 to September 1, 2007 (eleven months), the salary coefficient of grade 01.003, rank 6 (3.99), the general minimum wage was 450,000 VND

The average actual monthly salary of the last five years (sixty months) before workforce reduction of Mr. C is:

[(2.82 x 210,000 VND x 4 months) + (2.82 x 290,000 VND x 21 months) + (3.66 x 290,000 VND x 4 months) + (3.99 x 290,000 VND x 8 months) + (3.99 x 350,000 VND x 12 months) + (3.99 x 450,000 VND x 11 months)] / 60 = 1,149,548 VND/month

Thus, the monthly salary for calculating the early retirement allowance for Mr. C is 1,149,548 VND.

Mr. C retires two years earlier than planned, with a total of 19 years and 7 months of social insurance contributions, rounded to 20 years. Therefore, Mr. C is entitled to the following allowances:

- Allowance for early retirement:

2 years x 3 months x 1,149,548 VND = 6,897,290 VND

- Allowance for having at least twenty years of social insurance contributions is:

5 months x 1,149,548 VND = 5,747,740 VND

The total amount of allowance that Mr. C will receive is: 6,897,290 VND + 5,747,740 VND = 12,645,030 VND.

The total amount of funds provided by the state budget for implementing the reduction of staff for Mr. C is: 1,436,400 VND + 12,645,030 VND = 14,081,430 VND.

Mr. C will receive his pension from February 1, 2008.

2. Policies for those who transfer to work at organizations not receiving regular funding from the state budget

Those individuals subject to staff reduction who transfer to work at organizations not receiving regular funding from the state budget shall be entitled to the following allowances:

a) An allowance of three months' current salary.

b) They shall be granted 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 September 1, 2007, with 8 years and 8 months of social insurance contributions, and a current salary coefficient of 3.00 according to grade 01.003 from January 1, 2006.

The current monthly salary is:

3.00 x 450,000 VND = 1,350,000 VND

The monthly salary for calculating the severance pay based on years of service for Mr. A, as in Example 1, is 845,775 VND.

The number of years of social insurance contributions for calculating the severance pay is rounded to 9 years.

Mr. A is entitled to the following allowances:

- Severance pay equivalent to three months' current salary is:

3 months x 1,350,000 VND = 4,050,000 VND

- Severance pay based on years of service is:

½ x 845,775 VND x 9 years = 3,805,988 VND

The total amount of severance pay when Mr. A transfers to a non-public entity is:

4,050,000 VND + 3,805,988 VND = 7,855,988 VND

3. Policy for those who immediately stop working

Individuals subject to staff reduction who immediately cease their employment are entitled to the following benefits:

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

b) They shall be granted 1.5 months' salary for each year of service with social insurance contributions (at least 12 months).

Example 6:Ms. Nguyen Thi E, aged 48, a typist subject to staff reduction, was terminated on September 1, 2007, with a current salary coefficient of 2.76 according to grade C2, level 8 from October 1, 2006, and 18 years and 2 months of social insurance contributions.

Ms. E's current monthly salary is: 2.76 x 450,000 VND = 1,242,000 VND

The monthly salary for calculating the severance pay based on years of service for Ms. E is calculated as the average monthly salary of the last five years (60 months), from September 1, 2002 to September 1, 2007.

The evolution of the salary coefficient according to grade and level and the minimum wage to calculate the monthly salary for Ms. E from September 1, 2002 to September 1, 2007 is as follows:

- From September 1, 2002 to September 30, 2002 (1 month), the salary coefficient for typist grade 5 is 1.71, and the general minimum wage is 210,000 VND

- From October 1, 2002 to December 31, 2002 (3 months), the salary coefficient for typist grade 6 is 1.80, and the general minimum wage is 210,000 VND

- From January 1, 2003 to September 30, 2004 (21 months), the salary coefficient for typist grade 6 is 1.80, and the general minimum wage is 290,000 VND

- From October 1, 2004 to September 30, 2005 (12 months), the salary coefficient for civil servant grade C2, level 7 is 2.58, and the general minimum wage is 290,000 VND

- From October 1, 2005 to September 30, 2006 (12 months), the salary coefficient for civil servant grade C2, level 7 is 2.58, and the general minimum wage is 350,000 VND

- From October 1, 2006 to September 1, 2007 (11 months), the salary coefficient for civil servant grade C2, level 8 is 2.76, and the general minimum wage is 450,000 VND

The average monthly salary of the last five years (60 months) before reduction is: [(1.71 x 210,000 VND x 1 month) + (1.80 x 210,000 VND x 3 months) + (1.80 x 290,000 VND x 21 months) + (2.58 x 290,000 VND x 12 months) + (2.58 x 350,000 VND x 12 months) + (2.76 x 450,000 VND x 11 months)] / 60 = 765,523 VND/month

The monthly salary for calculating the severance pay based on years of service for Ms. E is: 765,523 VND

The number of years of social insurance contributions for calculating the severance pay is rounded to 18 years.

Ms. E is entitled to the following allowances:

- Job search allowance: 3 x 1,242,000 VND = 3,726,000 VND

- Termination allowance: 1.5 x 765,523 VND x 18 years = 20,669,121 VND

The total amount Ms. E receives upon termination is:

3,726,000 VND + 20,669,121 VND = 24,395,121 VND

4. Policy for those who leave their jobs after attending training

Staff reduction subjects under 45 years old, in good health, with a sense of responsibility and organizational discipline, and willing to attend vocational training to find new jobs, are entitled to the following benefits:

a) They shall receive their full current monthly salary, with their employer continuing to contribute to social insurance and health insurance during the training period, up to six months;

b) They shall be granted a financial allowance (training fee) equal to the cost of the vocational training course, up to six months of current monthly salary, to be paid to the training institution;

c) After completing the training, they shall receive three months' current monthly salary at the time of training to find new jobs; they shall also receive half a month's salary for each year of service with social insurance contributions (at least 12 months);

d) The training period shall be counted as continuous service but shall not be counted towards annual salary increments.

Example 7:Mr. Tran Van D, aged 35, has a current salary coefficient of 3.00 according to grade 01.003, level 3 from January 1, 2006, with 8 years and 3 months of social insurance contributions. Mr. D is subject to staff reduction but wishes to attend vocational training for five months starting April 1, 2007, with a training fee of 4,500,000 VND. After completing the training on September 1, 2007, Mr. D was terminated.

The current monthly salary is: 3.00 x 450,000 VND = 1,350,000 VND

The monthly salary for calculating the severance pay based on years of service for Mr. D is similar to Mr. A in Example 1, which is 845,775 VND.

The number of years of social insurance contributions for calculating the allowance is 8 years 3 months + 5 months of vocational training = 8 years 8 months, rounded up to 9 years.

Mr. D is entitled to the following allowances:

- An allowance of 5 months of current salary during the time of vocational training:

5 x 1,350,000 VND = 6,750,000 VND

- An allowance of 4,500,000 VND to pay for vocational training fees to the training institution;

- After completing vocational training, Mr. D is entitled to the following:

+ 3 months of current salary to find employment:

3 months x 1,350,000 VND = 4,050,000 VND

+ Termination allowance according to years of service:

½ x 845,775 VND x 9 years = 3,805,988 VND

5. Policy for those who leave leadership positions due to organizational restructuring

Civil servants who cease to hold leadership positions due to organizational restructuring shall retain their position allowances until the end of the term of appointment or election. In cases where the term of holding the position is less than six months, they shall retain the allowance for six months. During the period of retaining the old position allowance to enjoy the new position allowance, it starts from the date the appointment or election document becomes effective.

Example 8:Mr. Le Van M, classified as rank 01.002, with a current grade coefficient of 5.08, was appointed as Deputy Director of the Industry Department (position allowance coefficient 0.7) on January 1, 2005. On January 1, 2009, due to the merger of the Industry Department with the Commerce Department, Mr. M ceased to hold the position of Deputy Director of the Department.

The term of appointment as Deputy Director of the Department was five years as stipulated in the Regulation on Appointment, Reappointment, Rotation, Resignation, and Removal of Leaders issued together with Decision No. 27/2003/QD-TTg dated February 19, 2003, by the Prime Minister. Therefore, Mr. M retains the position allowance of 0.7 until December 31, 2009. From January 1, 2010, if he is not reappointed to another position, he will no longer receive the position allowance of 0.7.

Example 9:Mr. Tran Van H, classified as rank 01.003, with a current grade coefficient of 3.33, was appointed as Head of Department (position allowance coefficient 0.4) on October 1, 2004. On March 1, 2007, due to organizational restructuring, Mr. H no longer held the position of Head of Department. On January 1, 2008, Mr. H was appointed as Deputy Head of Department (position allowance coefficient 0.25).

The term of appointment as Head of Department was five years as stipulated in the Regulation on Appointment, Reappointment, Rotation, Resignation, and Removal of Leaders issued together with Decision No. 27/2003/QD-TTg dated February 19, 2003, by the Prime Minister. Therefore, Mr. H retains the position allowance of Head of Department (0.4) from March 2007 to December 2007, and from January 2008, he receives the position allowance of Deputy Head of Department (coefficient 0.25).

IV. SOURCE OF FUNDS, ENFORCEMENT OF FUNDS AND DECISIONS

1. Funds for implementing the policy of streamlining the workforce

a) Funds for implementing the policy of streamlining the workforce for the subjects specified in point a, b, c of Clause 1, Section I of this Circular shall be provided by the state budget (except for the case specified in point b below) and shall be implemented as follows:

Agencies and units shall use funds allocated in the annual state budget estimate or retained funds from revenue sources under the current financial regulations (for units with revenue sources) to pay for the following benefits:

- A one-time allowance equal to three months of current salary for the subjects specified in Clause 2, 3, 4 of Section III of this Circular.

- Support for social insurance and health insurance premiums for those who have reached retirement age but have less than six months of social insurance contributions remaining as specified in point b of Clause 1, Section III of this Circular, and for those within the scope of workforce streamlining who wish to undergo vocational training before being laid off as specified in point a of Clause 4, Section III of this Circular.

- Continue to pay salaries during the period of vocational training but not exceeding six months and provide a vocational training allowance for those within the age range eligible for vocational training as specified in points a and b of Clause 4, Section III of this Circular.

The state budget shall supplement funds for agencies and units due to the implementation of benefit payments as stipulated herein (if insufficient) and to cover the remaining benefits according to the principle:

- For agencies and units under localities that self-balance their budgets, the supplementary funds for workforce streamlining shall be guaranteed by the local budget;

- For agencies and units under ministries, ministerial-level agencies, government agencies, and localities that cannot self-balance their budgets, the central budget shall supplement the shortfall in workforce streamlining funds.

b) Those recruited by public service organizations for the first time from October 29, 2003 onwards, and fall within the scope of workforce streamlining as specified in points c and d of Clause 1, Section I of this Circular, if recruited by the organization authorized to recruit, the funds for implementing the workforce streamlining policy for these individuals shall be sourced from the regular budget of the public service organization.

c) Funds for implementing the workforce streamlining policy for positions in state-owned enterprises as specified in point d of Clause 1, Section I of this Circular shall be allocated from the Enterprise Restructuring Support Fund according to the provisions of Decree No. 110/2007/NĐ-CP dated June 26, 2007, of the Government regarding policies for redundant workers due to enterprise restructuring.

2. Enforcement of funds

a) For localities that self-fund workforce streamlining, implement payments to streamlined personnel according to the regulations stipulated in Decree No. 132/2007/NĐ-CP and this Circular, and report the results of implementation according to Tables 3 and 4 attached to this Circular to the Ministry of Home Affairs and the Ministry of Finance for monitoring and consolidation.

b) For ministries, ministerial-level agencies, government agencies, and localities that cannot self-fund workforce streamlining, based on the provisions of Decree No. 132/2007/NĐ-CP and the guidance in this Circular, direct subordinate units to compile lists of streamlined personnel (accompanied by streamlining decisions), calculate the amount of benefits according to Tables 1a, 1b, 1c, 1d; simultaneously compile the total number of streamlined personnel and prepare a budget for benefit payments according to Table 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 will review and issue written comments to the Ministry of Finance to provide the basis for additional funding, specifically as follows:

- For additional funds to implement the reduction in staff establishment regime for Ministries, agencies at the ministerial level, and government agencies, the supplementary budget shall be provided to ensure funding sources;

- For additional funds to implement the reduction in staff establishment regime for localities, targeted supplementary funds from the central budget shall be provided to ensure implementation;

Agencies and units are responsible for finalizing the budget for implementing litigation cost payments in accordance with this Decree and consolidating it into the annual budget finalization report of the agency or unit in accordance with the laws on regular budget finalization, accounting laws, guiding documents, and other relevant laws.

Upon completion of the payment period, the agencies and units must report on the results of implementing the reduction in staff establishment and submit the final account report for the funds paid (in accordance with forms 1a, 1b, 1c, 1d, and 3 attached) to the superior management agency for consolidation and settlement with the financial authority according to the current decentralization regulations. In cases where the amount is less than the provisional allocation, additional funding will be provided. Funds used for purposes other than intended, incorrectly disbursed, or not fully utilized must be recovered and refunded to the Central Budget.

The collection and expenditure of funds to implement the reduction in staff establishment policy as mentioned above must be consolidated into the annual financial report of the agency or unit in accordance with Decision No. 19/2006/QD-BTC dated March 30, 2006, issued by the Minister of Finance regarding the accounting system for administrative and public service units.

V. IMPLEMENTATION

1. Ministers, Heads of agencies at the ministerial level, Heads of government agencies, and Chairpersons of provincial People's Committees directly under the Central Government are responsible for disseminating and implementing the reduction in staff establishment policy stipulated in Decree No. 132/2007/NĐ-CP dated August 8, 2007, of the Government and related guiding documents to cadres, civil servants, and public officials under their management; directing and guiding subordinate agencies and units to organize the implementation of the reduction in staff establishment.

2. The reduction in staff establishment must be implemented strictly in accordance with the principles and procedures for reducing staff establishment as prescribed in Article 3 and Article 4 of Decree No. 132/2007/NĐ-CP dated August 8, 2007, of the Government on the reduction in staff establishment policy.

3. The Personnel Department or Organizational and Cadre Affairs Bureau of Ministries, agencies at the ministerial level, and government agencies, and the Provincial Civil Service Departments of provinces directly under the Central Government shall serve as the permanent bodies, tasked with leading and coordinating with the same-level financial agencies (the Financial Department at the central level, the Financial Department at the local level), and social insurance organizations within their jurisdiction to guide agencies and units under their management to implement Decree No. 132/2007/NĐ-CP of the Government and this Circular; assist the Heads of Ministries, sectors, and provincial People's Committees in guiding and inspecting subordinate agencies and units to compile lists of personnel subject to reduction in staff establishment; bear responsibility before the Ministry, sector, or locality for reviewing the personnel subject to reduction in staff establishment; compile lists of personnel subject to reduction in staff establishment for their respective Ministries, sectors, or localities; organize inspections and audits of the implementation by agencies and units. In cases where there is a misjudgment of the personnel subject to the reduction in staff establishment policy, in addition to disciplinary action, they must also compensate for the funds disbursed for the reduction in staff establishment policy in accordance with the law.

VI. IMPLEMENTATION PROVISIONS

1. This Circular shall take effect 15 days after its publication in the Official Gazette and shall remain effective until December 31, 2011. The benefits and policies stipulated in this Circular shall be applicable from September 5, 2007 (the date when Decree No. 132/2007/NĐ-CP dated August 8, 2007, of the Government on the reduction in staff establishment policy took effect).

2. Ministers, Heads of agencies at the ministerial level, and government agencies, and Chairpersons of provincial People's Committees shall directly direct the reduction in staff establishment within their authority, promptly report and request the Prime Minister to resolve issues exceeding their authority.

Annually, Ministries, sectors, and localities must compile the results of implementing the reduction in staff establishment and assess the implementation situation, attaching forms 3 and 4 to be submitted to the Ministry of Home Affairs and the Ministry of Finance before December 15 each year for inspection, resolution according to their authority, and consolidation and reporting to the Prime Minister.

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