Vietnam Issues New Benefits for Village Leaders Affected by Mergers

Vietnam's Government Decree 185/2025 introduces new benefits for village and neighborhood leaders who lose their positions due to organizational restructuring. The decree ensures these individuals receive compensation and support aligned with government policies on streamlining personnel. The regulations apply to key positions such as village chiefs, neighborhood heads, Party cell secretaries, and heads of the Fatherland Front committees. Severance pay will be calculated based on their current monthly allowances prior to their departure, with specific formulas for those with less than five years of service and those with five or more years. For individuals with less than five years of service, the severance package includes a one-time payment calculated at 0.8 times their monthly allowance multiplied by their months of service, plus 1.5 times their monthly allowance for each year worked. They will also receive three months' allowance to aid in their job search and have their social insurance contributions preserved or receive a lump sum payout. Those with five or more years of service who are within five years of retirement age will receive a one-time payment based on 0.8 times their monthly allowance multiplied by the number of months they retire early. They also receive 1.5 times their monthly allowance for each year of service, three months' allowance for job seeking, and their social insurance contributions are handled similarly. The decree aims to provide a clear framework for supporting these officials during a period of administrative change.