Sending a question to the Ministry of Finance, a reader had many questions related to the funding source to pay severance pay for civil servants.
Accordingly, the reader stated that Article 60 of Decree No. 170/2025/ND-CP of the Government on recruitment, management and use of civil servants stipulates: "Article 60. Funding for paying severance pay: The fund for paying severance pay is arranged in the regular operating expenditure estimate assigned annually by the competent authority".
But readers wonder how the above funding source is understood in the 03 following understandings:
a. The unit balances itself from the budget allocated autonomously at the beginning of the year (source 13); if there is funding, it will resolve the severance regime for civil servants; if there is no funding, it will not resolve the severance regime for civil servants.
b. The unit balances itself from regular expenditure funds according to the budget law (not development investment expenditure) allocated at the beginning of the year (including autonomy - source 13 and non- Sufference - source 12, 15, ....); if there is funding, it will resolve the severance pay for civil servants; if there is no funding, it will not resolve the severance pay for civil servants.
c. The unit shall prepare a budget for paying severance pay for civil servants of the entire unit arising during the year; send it to the same-level financial agency for synthesis and submission to the Provincial People's Committee and the Provincial People's Council for additional budget for non-autonomously implemented policies for the unit to pay to civil servants.
In addition, Point c, Clause 2, Article 57 of Decree No. 170/2025/ND-CP of the Government stipulates:
"c) Reasons for not settling the termination of employment for civil servants:
- Civil servants undergoing disciplinary action or criminal prosecution;
- Civil servants who have not served the recruitment agency or organization for the full time as committed; - Civil servants who have not completed the payment of money and assets under the responsibility of individuals to the agency or organization;
- Due to work requirements of the agency or organization or no replacement has been arranged. - Other reasons as prescribed by law, regulations of competent authorities".
Thus, is it in accordance with regulations that the agency uses the reason of not having funds to pay severance pay to not resolve the termination of employment for civil servants?
Next, if the unit does not have enough funds to pay severance pay for civil servants in the year, will it be allowed to resolve the termination of employment for civil servants who voluntarily resigned in the previous year; then make an estimate to be allocated to the budget for the following years to pay the regime to civil servants in the future?
If a civil servant voluntarily quits his job for reasons that prevent him from continuing his work as usual; but if the agency does not resolve the termination of employment for civil servants due to lack of funding, forcing civil servants to continue working, will it violate the legitimate rights and interests of civil servants?
If civil servants are forced to continue working for many reasons and lead to errors in the work process, who is responsible for these errors?
Responding to readers' questions, the Ministry of Finance said:
Regarding the funding source for paying severance pay:
- Article 60 of Decree No. 170/2025/ND-CP dated June 30, 2025 of the Government on recruitment, use and management of civil servants stipulates: "The funding source for paying severance pay is arranged in the regular operating expenditure estimate assigned annually by the competent authority".
- According to the provisions of Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014 of the Ministry of Finance, the Ministry of Home Affairs stipulates the autonomy and self-responsibility regime for the use of administrative management funds for State agencies:
+ Clause 1, Article 3 stipulates: Administrative management funds are assigned to agencies implementing the autonomous regime from the following sources: Provided by the state budget; fees and charges are retained according to the prescribed regime; other legal revenues according to the provisions of law.
+ Clause 5, Article 3 stipulates: The budget for implementing the autonomous regime includes other regular expenditures.
+ Clause 8, Article 4 stipulates the budget for allocation but not implementing autonomy, including funding for implementing other unusual contents.
Therefore, based on the above regulations, the cost of paying severance pay according to Decree No. 170/2025/ND-CP is only from the regular operating budget allocated annually by competent authorities (Funds allocated for autonomy: State budget; fees, charges left (if any) and other legal revenues) and are accounted for in the regular operating expenses of the agency.
In case the regular expenditure budget of the state agency is not enough to pay the termination allowance according to Decree No. 170/2025/ND-CP, the agency shall send 2 documents to the same-level financial agency to submit to the competent authority for consideration of supplementing the budget or arranging the budget for the following year to comply with the provisions of the law on the state budget.
Regarding the regime and policies for civil servants who voluntarily resign:
Decree No. 170/2025/ND-CP was submitted to the Government by the Ministry of Home Affairs; therefore, it is recommended that readers send questions to the Ministry of Home Affairs for answers.
