HCMC to spend US$6.7 mln to support staff affected by administrative streamline

Ho Chi Minh City will provide three months' salary for job searching and 1.5 months per year of service to district-level  Urban Order and Red Cross staff affected by administrative streamlining.

On the morning of July 24, at the 2nd session of the Ho Chi Minh City People's Council in its 10th tenure for the 2021-2026 term, the Ho Chi Minh City People's Committee submitted a proposal regarding support policies for collaborators of district-level Urban Order Management Teams and contracted employees under district-level Red Cross branches, who are being laid off owing to the implementation of the two-tier local government model.

According to the proposal, from July 1, 2025, district-level administrative bodies and organizations ceased operations. As a result, the Urban Order Management Teams under the Economic-Infrastructure Division of district-level People's Committees and district-level Red Cross branches terminated their operations.

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Deputies at the working session. (Photo: SGGP/ Viet Dung)

To ensure the benefits and recognize the contributions of the forces, the Municipal People’s Committee proposed to support them as following, one-time payment equivalent to three months of their current salary to support job searching. An additional payment of 1.5 months of their current salary for each year of service. The salary used for calculating the support will include the salary coefficient and social insurance-based allowances from the latest month of terminating their jobs due to the streamlining.

The eligible recipients shall be collaborators of the district-level Urban Order Management Teams under district-level People's Committees and contracted employees within the authorized staffing quota of district-level Red Cross branches.

According to the Ho Chi Minh City People's Committee, the total number of eligible recipients is 703 collaborators from the Urban Order Management Teams and 154 contracted employees from district-level Red Cross branches.

Based on an average salary coefficient of 2.26 and an average service time of 20 years, the city estimates that the total budget required for this support will exceed VND175.6 billion (US$6.7 million).

At the current time, the city has temporarily reassigned these workers to local wards, communes, and special zones to stabilize their livelihoods and facilitate future career transitions while awaiting the final settlement of their benefits.

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