Circular No. 07/2025/TT-BTC guides the determination of funding sources and the preparation of budgets, management, use, and settlement of funds for implementing policies stipulated in Government Decree No. 178/2024/NĐ-CP dated December 31, 2024, concerning policies and regulations for civil servants, public officials, employees, workers, and armed forces personnel in the process of restructuring organizational structures within the political system.

CIRCULAR

Circular guiding the determination of funding sources and the preparation of budget estimates, management, utilization, and settlement of funds for implementing the policies stipulated in

Decree No. 178/2024/NĐ-CP dated December 31, 2024 of the Government on policies and regulations for cadres, civil servants, public officials, workers, and armed forces in the process of organizational restructuring of the political system.

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Securities Law, Accounting Law, Independent Auditing Law, State Budget Law, Management and Use of Public Assets Law, Tax Administration Law, Personal Income Tax Law, National Deduction Law, Administrative Violation Handling Law dated November 29, 2024;

Pursuant to Decree No. 178/2024/NĐ-CP dated December 31, 2024 of the Government on policies and regulations for cadres, civil servants, public officials, workers, and armed forces in the process of organizational restructuring of the political system;

At the proposal of the Director of the Department of Administrative and Public Finance,

The Minister of Finance promulgates this Circular guiding the determination of funding sources and the preparation of budget estimates, management, utilization, and settlement of funds for implementing the policies stipulated in Decree No. 178/2024/NĐ-CP dated December 31, 2024 of the Government on policies and regulations for cadres, civil servants, public officials, workers, and armed forces in the process of organizational restructuring of the political system.

This Circular provides for the determination of funding sources and the preparation of budget estimates, management, utilization, and settlement of funds for implementing the policies stipulated in Decree No. 178/2024/NĐ-CP dated December 31, 2024 of the Government on policies and regulations for cadres, civil servants, public officials, workers, and armed forces in the process of organizational restructuring of the political system (hereinafter referred to as Decree No. 178/2024/NĐ-CP).

Pursuant to Decree No. 14/2023/NĐ-CP dated April 20, 2023, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

a) Cadres, civil servants, public officials, and workers under labor contracts in agencies, organizations, units, and armed forces due to organizational restructuring at various levels (hereinafter referred to as organizational restructuring) as provided for in Clause 1, Article 2 of Decree No. 178/2024/NĐ-CP;

b) Agencies, organizations, units, and individuals related to the determination of funding sources, preparation of budget estimates, management, utilization, and settlement of funds for implementing the policies stipulated in Decree No. 178/2024/NĐ-CP.

3. In cases where agencies and units have operating funds based on Resolutions, Decisions, and other documents of competent authorities: Funding sources for implementing policies as stipulated in such Resolutions, Decisions, and other documents of competent authorities (if applicable).

2. Applicability:

4. For cadres who do not meet the age criteria for re-election or reappointment to positions or ranks during their term in Party of Vietnam, State, and political-social organizations, and cadres who resign from work according to their wishes: Implementation shall be in accordance with Decree No. 177/2024/NĐ-CP dated December 31, 2024 of the Government on regulations and policies for cases of non-re-election, non-reappointment, and cadres who resign from work or retire according to their wishes.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Officials, civil servants, public employees, and workers under labor contracts in agencies, organizations, units, and armed forces due to organizational restructuring at all levels (hereinafter referred to as organizational restructuring) as stipulated in Clause 1 of Article 2 of Decree No. 178/2024/NĐ-CP;

b) Agencies, organizations, units, and individuals related to determining the source of funds, preparing budgets, managing, using, and settling accounts for funds implementing the policies prescribed in Decree No. 178/2024/NĐ-CP.

3. In cases where agencies and units have operating funds based on Resolutions, Decisions, and other documents of competent authorities: The source of funds for implementing policies as prescribed in such Resolutions, Decisions, and other documents (if any).

4. For officials who do not meet the age criteria for reappointment or reappointment to positions or titles within terms in agencies of the Communist Party of Vietnam, the State, political-social organizations, and officials who retire from work according to their wishes: Implement in accordance with the provisions of Decree No. 177/2024/NĐ-CP dated December 31, 2024 of the Government regarding the system and policies for non-reappointment, reappointment cases, and officials retiring from work according to their wishes.

Article 2. Sources of funds to implement policies and benefits for officials and civil servants; village-level officials; armed forces personnel and workers (excluding workers in public service units)

1. Agencies and units using annual regular budget estimates shall allocate funds for the following benefits:

b) Continuing to pay the current salary (including all salary allowances) according to the previous job position before being assigned to work at the grassroots level as provided in point a, Clause 1 and point a, Clause 2 of Article 12 of Decree No. 178/2024/NĐ-CP;

c) The promotion policy as prescribed in point d, Clause 1, point d, Clause 2 of Article 12 and Clause 1 of Article 13 of Decree No. 178/2024/NĐ-CP;

d) Paying bonuses to eligible recipients as prescribed in Clause 3 of Article 7, point d, Clause 1, point d, Clause 2 of Article 12; Clause 2 of Article 13 of Decree No. 178/2024/NĐ-CP.

a) For officials, civil servants, workers, and armed forces personnel under the management of ministries, ministerial-level agencies, government agencies, and other central agencies (hereinafter referred to as central agencies), the central budget will cover the costs;

b) For officials, civil servants, village-level officials, and workers under the management of local authorities: The cost of implementing benefits and policies will be included in the local wage reform needs.

3. For agencies, organizations, and units that have merged or consolidated and are responsible for training and enhancing professional skills suitable to their job positions for officials and civil servants: Implementation shall follow the provisions of Clause 3 of Article 16 of Decree No. 178/2024/NĐ-CP. For the cost of implementing these policies in local areas, it will be included in the local wage reform needs.

2. For public service units that partially self-finance regular expenses: The cost of implementing policies and benefits shall be as prescribed in point b, Clause 2 of Article 16 of Decree No. 178/2024/NĐ-CP, noting the following:

a) The total number of employees receiving salaries from the state budget to determine the state budget funding needs for implementing Decree No. 178/2024/NĐ-CP is the number of people expected to benefit from policies and benefits within the number of employees receiving salaries from the state budget allocated by the competent authority;

b) For those outside the quota of employees receiving salaries from the state budget allocated by the competent authority and employees working under labor contracts: Agencies and units shall arrange from the annual state budget estimate, revenue from business activities, and other legitimate sources to pay the beneficiaries.

3. For public service units fully funded by the state budget for regular expenses: The cost of implementing policies and benefits shall be from the state budget as prescribed in point c, Clause 2 of Article 16 of Decree No. 178/2024/NĐ-CP.

a) Units using annual state budget support for regular expenses shall allocate funds for the benefits prescribed in Clause 1 of Article 2 of this Circular.

b) The state budget will allocate funds to implement remaining policies and benefits (excluding those mentioned in point a of this clause) as specified in Articles 7, 8, 10, 12, and 15 of Decree No. 178/2024/NĐ-CP as follows:

- For civil servants and workers in public service units under the management of ministries, ministerial-level agencies, government agencies, and other central agencies and the armed forces (hereinafter referred to as central agencies), the central budget will cover the costs;

- For civil servants and workers in public service units managed by local authorities: The cost of implementing benefits and policies will be included in the local wage reform needs.

5. For public service units that have merged or consolidated and classified as partially self-financing public service units, public service units fully funded by the state budget for regular expenses, responsible for training and enhancing professional skills suitable to their job positions for civil servants: Implementation shall follow the provisions of Clause 3 of Article 16 of Decree No. 178/2024/NĐ-CP. For the cost of implementing these policies in local areas, it will be included in the local wage reform needs.

Article 4. Method for transferring state budget funds to ensure an equivalent amount of social insurance contributions into the retirement and survivorship fund as stipulated in Clause 4, Article 16 of Decree No. 178/2024/NĐ-CP.

Based on the retirement before age file for social insurance benefits according to the decision of the competent authority, the social insurance agency calculates annually the state budget funds to ensure an equivalent amount of annual social insurance contributions into the retirement and survivorship fund for the period from five years to the statutory retirement age during which civil servants, public officials, employees, and members of the armed forces retire early without reducing their pension rate, periodically every three months, six months, or twelve months, sent to the financial agency no later than November 15 each year to transfer funds into the social insurance fund as follows:

The preparation, management, utilization, and settlement of state budget funds for implementing policies and benefits for civil servants, public officials, employees, and members of the armed forces in organizational restructuring shall be carried out in accordance with the State Budget Law; Accounting Law, and guiding documents. This Circular supplements some provisions as follows:

1. Preparing budgets

a) For ministries and central agencies:

Based on the provisions of Article 18 of Decree No. 178/2024/NĐ-CP, the guidance provided in this Circular, the situation of policy and benefit implementation (including the number of beneficiaries and the amount of subsidies paid by the state budget), and the anticipated plan for the next year, ministries and central agencies will prepare the budget for implementing policies and benefits to be included in the annual state budget draft submitted to the Ministry of Finance for approval by the competent authority to allocate and assign the budget for policy implementation in the annual budget of ministries and central agencies.

b) For social insurance agencies:

Based on the list of beneficiaries of policies approved by the competent authority, the agencies and units managing civil servants, public officials, employees, and members of the armed forces will calculate the equivalent amount of social insurance contributions into the retirement and survivorship fund, and submit it to the same-level financial agency and the social insurance agency.

Based on the retirement before age file for social insurance benefits according to the decision of the competent authority, the social insurance agency will prepare the annual state budget funds to ensure an equivalent amount of annual social insurance contributions into the retirement and survivorship fund for the period from five years to the statutory retirement age during which civil servants, public officials, employees, and members of the armed forces retire early without reducing their pension rate, and submit it to the financial agency as the basis for allocating the annual budget of the social insurance agency.

c) For localities:

Based on the provisions of Article 19 of Decree No. 178/2024/NĐ-CP, the guidance provided in this Circular, the situation of policy and benefit implementation (including the number of beneficiaries and the amount of subsidies paid by the state budget), and the anticipated plan for the next year, the agencies and units will prepare the budget for implementing policies and benefits to be included in the local salary reform needs in the next year's state budget draft. In cases where the local salary reform resources have been fully utilized but still cannot meet the needs, the central budget will support the shortfall for the locality.

d) Specifically for the year 2025, the agencies and units will base on the number of beneficiaries receiving policies and benefits paid by the state budget, the subsidy standards stipulated in Decree No. 178/2024/NĐ-CP, and the guidance on funding sources provided in this Circular to prepare the budget for implementing policies and benefits, and submit it to the same-level financial agency for consolidation and submission to the competent authority to supplement the shortfall in accordance with the State Budget Law.

During the waiting period for the competent authority to supplement the funds, the agencies and units will proactively use the allocated budget to promptly pay policies and benefits to the beneficiaries.

2. Management and utilization of funds

a) For ministries and central agencies:

The state budget funds allocated to implement policies and benefits for civil servants, public officials, employees, and members of the armed forces in organizational restructuring as stipulated in Clause 2, Article 2 and Point b, Clause 4, Article 3 of this Circular will be allocated to the non-autonomous budget sources of budget-using units.

Based on the list of beneficiaries of policies approved by the competent authority, ministries and central agencies will implement the payment of policies and benefits as prescribed.

b) For localities:

Based on the list of beneficiaries and the funds for implementing policies and benefits for civil servants, public officials, employees, and members of the armed forces in organizational restructuring approved by the competent authority, local agencies will implement the payment of policies and benefits to the beneficiaries as prescribed.

3. The settlement of funds for implementing policies and regulations for cadres, civil servants, public officials, workers, and armed forces in organizational restructuring shall be consolidated into the annual financial report and settlement report of the agency or unit in accordance with the State Budget Law, the Accounting Law, and related guiding documents.

Article 5. Effective Date

1. This Circular takes effect from January 24, 2025.

2. In case of difficulties during implementation, agencies and units are requested to reflect them to the Ministry of Finance for study and resolution./.