On May 22, the Government issued Decree 111/2025/ND-CP amending and supplementing a number of articles of Decree 60/2021/ND-CP of the Government regulating the financial autonomy mechanism of public service units.
Point d, Clause 2, Article 14 of Decree 60/2021/ND-CP amended by Point d, Clause 9, Article 1 of Decree 111/2025/ND-CP stipulates as follows:
Article 14. Distribution of financial results in the year
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2. Using Funds
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d) Welfare Fund: To build and repair the unit's welfare works; contribute a part of capital to invest in the construction of general welfare works in the industry or with other units under contracts; spend on collective welfare activities of employees in the unit; provide emergency allowances for employees, including those in retirement, disability, or difficult circumstances; spend more on employees to streamline the payroll; support social and charity activities, resolve regimes and policies when terminating labor contracts and other expenses as prescribed in the unit's internal spending regulations.
Currently, Point d, Clause 2, Article 14 of Decree 60/2021/ND-CP stipulates as follows:
Article 14. Distribution of financial results in the year
[...]
2. Using Funds
[...]
d) Welfare Fund: To build and repair the unit's welfare works; contribute a part of capital to invest in the construction of general welfare works in the industry or with other units under contracts; spend on collective welfare activities of employees in the unit; provide emergency allowances for employees, including retirement, disability leave, and difficult circumstances; spend more for employees to streamline the payroll; support social and charitable activities;
Thus, from July 7, the additional purpose of the welfare fund is to resolve the regime and policies when terminating the labor contract and other expenses as stipulated in the internal spending regulations of the unit.
