Ho Chi Minh City estimates that 6,291 officials, civil servants, public employees, and workers will be affected by its administrative restructuring, with a total compensation budget of approximately 17 trillion VND ($680 million). Some individuals may receive up to 2.7 billion VND ($108,000) in support.

The city's People's Committee has submitted a proposal to the municipal People's Council outlining additional financial support for those impacted by the restructuring process.

Eligible recipients include officials, civil servants, and employees affected by organizational restructuring, party officials in state-owned enterprises (SOEs) whose roles are dissolved, and individuals who do not qualify for reappointment or reelection.

According to projections, the restructuring will affect:

6,291 government employees, including civil servants and public sector workers

418 surplus Party officials in SOEs

450 individuals who are ineligible for reelection or reappointment

The Ho Chi Minh City government has calculated the financial support based on current salaries. For an individual earning 15.1 million VND ($600) per month, early retirement compensation under the government's decree would amount to 1.57 billion VND ($63,000) per person.

Additional compensation under the city’s proposed resolution would provide another 1.1 billion VND ($44,000) per person.

With both policies combined, the highest total support package could exceed 2.68 billion VND ($108,000) per individual.

The total estimated budget to support 6,291 affected individuals is approximately 16.79 trillion VND ($670 million), of which 6.87 trillion VND ($270 million) will be covered by the city’s budget.

Compensation structure

The financial support will be calculated based on years of service and time remaining until retirement age.

Less than 2 years until retirement:

12 months' current salary

6 months' salary for the first 20 years of service with mandatory social insurance contributions

An additional 0.5 month’s salary for each year beyond 20 years of service

2 to 5 years until retirement:

12 months' current salary

6 months' salary for each year of early retirement

6 months' salary for the first 20 years of service

An additional 0.5 month’s salary for each year beyond 20 years of service

5 to 10 years until retirement:

12 months' current salary

5 months' salary for each year of early retirement

6 months' salary for the first 20 years of service

An additional 0.5 month’s salary for each year beyond 20 years of service

Additionally, executives of state-owned enterprises and Party officials in SOEs will receive three months of regional minimum wage for each year of service with mandatory social insurance contributions.

Tuan Kiet