On January 17, the Minister of Home Affairs issued Circular No. 1/2025/TT-BNV, providing detailed guidance on implementing policies and regimes for officials, public employees, and workers during organizational restructuring within the political system. These regulations will take effect from January 1, 2025, bringing significant changes to how severance benefits are calculated.
Illustration of severance policy calculation for public employees and workers
Detailed Guidance on Severance Policies Under the New Circular
1. Scope of Application
Circular No. 1/2025/TT-BNV applies to all public employees and workers under state payroll, including:
- Public employees working in public service units.
- Contracted workers regulated by labor laws.
This policy ensures labor rights when organizational or personnel changes occur due to administrative reforms or restructuring.
2. Eligibility for Severance Benefits
To qualify for severance-related benefits, public employees and workers must meet the following conditions:
- Completion of procedures for terminating employment contracts or resignation decisions as per regulations.
- No disciplinary violations warranting forced resignation during their service.
- A minimum of 12 months of service.
These conditions ensure fairness and transparency in policy implementation.
3. Calculation of Severance Benefits
According to Article 6 of the Circular, severance benefits include the following components:
a. Severance Allowance
Severance allowance is calculated based on the basic salary and actual years of service. Specifically:
- Each year of service grants an allowance equivalent to 0.5 months’ salary.
- Service periods of less than one year are prorated based on the number of months worked.
Example: A public employee with 10 years of service and a basic salary of 10 million VND/month will receive:
10 years x 0.5 months' salary x 10 million = 50 million VND.b. Social and Health Insurance
Workers will also be compensated for any outstanding social insurance (SI) and health insurance (HI) contributions or unused benefits. This is crucial for ensuring social security after leaving their jobs.
c. Additional Benefits
In addition to basic allowances, public employees and workers are entitled to other benefits, such as:
- Vocational training support if they wish to switch careers.
- Free job counseling through public service centers.
4. Significance of the Circular for Workers
The issuance of Circular No. 1/2025/TT-BNV not only enhances transparency in human resource management but also safeguards the legal rights of workers. Particularly amid strong administrative reforms and organizational streamlining, these policies play a vital role in maintaining social stability.
Conclusion
Circular No. 1/2025/TT-BNV marks a significant step forward in establishing a more comprehensive legal framework for Vietnam’s political system. The new regulations not only protect the rights of public employees and workers but also contribute to the sustainable development of the national administration. Be sure to thoroughly review these provisions to fully understand your entitlements.
Source: dantri.com.vn
