In a significant move aimed at supporting non-specialized staff in Ho Chi Minh City (TPHCM), the local government has proposed a one-time retirement allowance exceeding 500 million VND for those with 20 years of service who are affected by upcoming administrative restructuring. This proposal, outlined in Conclusion No. 137 dated March 28, 2025, by the Politburo and the Secretariat, comes as the city prepares to implement a new two-level local government organization model, which will phase out non-specialized staff at the commune level.
The Department of Home Affairs of Ho Chi Minh City has initiated discussions with localities to establish two support regimes for non-specialized staff at the commune level, as well as in villages and residential groups. The first regime is designed for non-specialized staff at the commune level, who will receive a retirement allowance policy comprising three components:
First, those with five or more years of service compared to the prescribed retirement age will receive a subsidy of 60 months at their current allowance level. For individuals with less than five years of service remaining until retirement, the subsidy will be calculated based on the number of months left multiplied by the current allowance.
Second, a subsidy of 12 months at the current allowance level will be provided to assist with job searching.
Third, an additional subsidy of 1.5 months at the current allowance level will be granted for each year of service as a non-specialized worker who has made compulsory social insurance contributions but has not yet received a one-time allowance.
For non-specialized staff in villages and residential groups, the city proposes a one-time support regime based on their length of service. Those with five years or less will receive an additional five months of their current title allowance, while those with five or more years will receive an additional 12 months.
According to Resolution No. 02/2024/NQ-HĐND from the Ho Chi Minh City People's Council, non-specialized staff holding a university degree currently receive a monthly allowance equivalent to 2.34 times the base salary. This means that a non-specialized worker with a university degree and 20 years of seniority could potentially receive a one-time retirement allowance totaling up to 558,511,200 VND.
The breakdown of this substantial amount includes 60 months of the current allowance level, which equates to 328,536,000 VND; a job search support amount of 65,707,200 VND for 12 months; and an additional 164,268,000 VND for 30 months of support based on 20 years of service.
Furthermore, the city is considering additional training and career transition support for retiring non-specialized workers. Those without professional qualifications will be eligible for training and transition assistance under the provisions of Decree 29/2023/ND-CP. The city also aims to facilitate the reassignment of non-specialized staff to positions where there is a shortage of personnel, based on their preferences.
On another front, the National Assembly convened on May 7, 2025, to discuss various opinions regarding the draft Law on Employment (amended). Delegate Ha Sy Dong from the Quang Tri Delegation emphasized the need for a comprehensive chapter on state employment policy rather than a single article.
Mr. Dong highlighted the importance of this issue in the context of advancing three breakthroughs, particularly in human resource development. He advocated for policies supporting officials and civil servants leaving public service due to staff reductions and the application of digital technology in public service.
Additionally, Mr. Dong called for the inclusion of officials, civil servants, and public employees in unemployment insurance policies, asserting that they too are workers who may need to change jobs.
Delegate Nguyen Hoang Bao Tran from Binh Duong expressed concerns regarding the current draft, which excludes workers eligible for pensions from unemployment insurance benefits. She pointed out that many workers meet the required social insurance contributions for pensions but may not be of retirement age and could be forced to quit for various reasons, including health issues.
Ms. Tran suggested that these individuals should be allowed to receive unemployment benefits to support them financially while they await their pensions. She also raised the issue of job search notification responsibilities during the unemployment benefit period, advocating for more flexible reporting methods that reflect the realities of today's labor market.
According to Ms. Tran, the requirement for monthly declarations to public employment services can be burdensome, particularly for those in remote areas or those temporarily residing elsewhere after losing their jobs. She proposed allowing notifications via online portals, emails, or mobile applications to streamline the process.
Furthermore, she mentioned the need to connect reputable recruitment platforms with insurance agencies to facilitate automatic updates on job search activities.
In light of the potential removal of the “lifetime employment” regulation, Ms. Tran warned that many officials and public employees could face job loss if they do not fulfill their duties. She urged the expansion of unemployment insurance policies to cover a broader range of workers, ensuring fairness in access to social security and encouraging officials to remain diligent in their roles.
As these discussions unfold, the city of Ho Chi Minh and the National Assembly are taking significant steps to address the needs of non-specialized staff and public employees, ensuring that they receive the support necessary during these transitional periods.
