Ho Chi Minh City is taking significant steps to support civil servants and workers affected by the upcoming government restructuring. On February 20, 2025, the city council passed Resolution No. 178/2024/NĐ-CP, which aims to provide additional financial assistance to these employees as they navigate the organizational changes within the political system.
The initiative, discussed during the 21st session of the city council, is part of broader efforts to streamline operations and increase efficiency among governmental units. According to the city's Department of Labor, Invalids and Social Affairs, "The resolution establishes additional support for civil servants and workers affected by the restructuring process, ensuring they have the necessary resources during this transition," as reported by SGGP.
This resolution is particularly aimed at civil servants, officials, and workers employed within Ho Chi Minh City's political system, as well as those engaged with State-owned enterprises directly impacted by these organizational changes. The decision recognizes the psychological distress and economic uncertainty faced by those transitioning from public service roles, enabling them to maintain stability as they seek new job opportunities.
Eligibility for support will depend on various circumstances, including years served and whether individuals retire early or lose their jobs due to the restructuring. The city government estimates around 7,159 people will qualify for this assistance, which amounts to nearly 17 trillion VND (approx. $740 million). Each eligible employee stands to receive benefits worth approximately 2.7 billion VND (approx. $114,000), comprising both early retirement compensation as outlined by the national decree and additional payments as stipulated by this local resolution.
Under the new measures, employees who retire before the statutory age will receive varying amounts of financial support: for those with less than two years left until retirement, there will be extra compensation equivalent to 12 months' salary, and for every year of service beyond 20 years, they will receive half of their monthly salary for each additional year served.
Those with five to ten years left before retirement can also expect similar support, receiving 12 months' salary, as well as differentiated stipends based upon their length of service. Specifically, managers of State-owned enterprises and party officials who undergo restructuring will benefit from three months of additional salary for every year worked within their roles.
The city is actively implementing these support mechanisms to not only fulfill legal obligations under the new restructuring policy but also to proactively address the unique challenges posed by its local workforce dynamics. Through the resolution, Ho Chi Minh City aims to facilitate smoother transitions for its workers, fostering resilience and adaptation during these necessary changes.
Resolution No. 178/2024/NĐ-CP is not just about financial assistance; it embodies the city's holistic approach to human resource management by ensuring its public servants feel secure and valued during times of organizational change. The resolution is set to take effect on February 20, 2025, and reflects the city's commitment to responsible governance.
While this government restructuring brings challenges, it is also seen as pivotal to enhancing operational efficiency and responsiveness to the needs of the community. By ensuring its workforce is supported, Ho Chi Minh City aims to pave the way for effective governance—one where the interests of its public servants remain at the forefront of policy decisions.
With the financial backing of this resolution, Ho Chi Minh City is positioning itself as not just another urban center but as a model of modern governance—one where the welfare of government employees is prioritized as part of broader restructuring efforts.