The Ministry of Home Affairs has affirmed that the cost of compensating officials who opt for early retirement as part of the government’s workforce restructuring plan is lower than keeping them on the payroll for five years.

This statement was made in response to public concerns about financial sustainability and fairness in the downsizing process.

Government restructuring and financial planning

At a government press briefing on February 5, journalists raised questions about the expected number of officials and civil servants affected by the restructuring process and how financial compensation would be handled.

In response, Vu Dang Minh, Chief of Office at the Ministry of Home Affairs, explained that the government had issued Decree 178, outlining policies for officials, civil servants, and military personnel affected by organizational restructuring. The Ministry has also issued Circular 01, providing detailed guidance on implementing the decree.

Minh emphasized that each ministry and local government has been given clear criteria and evaluation guidelines to identify which employees will be retained and which will be subject to downsizing.

The key principle in restructuring is ensuring clear job roles, measurable work output, and operational efficiency in the new streamlined government model.

"Positions must be justified with clear responsibilities and measurable productivity," Minh stated. "If a role cannot be justified, it must be restructured."

Ensuring financial sustainability

Addressing concerns about whether the government has sufficient funds for early retirement compensation, Minh reassured that the financial impact had been carefully assessed.

"When drafting Decree 178, the Ministry of Home Affairs consulted with the Central Steering Committee and even sought direct input from General Secretary Nguyen Phu Trong. The assessment showed that the cost of compensating those who opt for early retirement is actually lower than keeping them employed for another five years," Minh explained.

Thus, the government remains confident in its ability to cover compensation costs without exceeding budget constraints.

Minh clarified that not all affected employees will receive the same compensation. The amount depends on: Current salary level, Number of months left until retirement, Whether they leave within the first 12 months or later

A government-issued formula will be used to calculate compensation for each individual, ensuring transparency and fairness.

The Ministry of Home Affairs is currently working with the Ministry of Finance to finalize detailed financial regulations for restructuring. The process will include budget planning, allocation of funds, and implementation procedures.

All necessary documents and reports have already been prepared and submitted to the National Assembly, awaiting approval for implementation.

Quang Phong