Vietnam proposes amendment to limit civil servant compensation liability

The Vietnamese government presented a draft amendment to the State Compensation Law at the first extraordinary session of the 16th National Assembly. Justice Minister Hoàng Thanh Tùng, acting on behalf of the Prime Minister, introduced changes that would modify 35 articles and repeal two existing provisions.

Key provisions include: public officials who intentionally cause damage but are not criminally prosecuted may be required to repay an amount equivalent to 30‑50 months of their salary, capped at 50 % of the state’s compensation. The draft also exempts officials from repayment in specific circumstances such as achieving a major public accomplishment, suffering a serious illness, or enduring prolonged severe economic hardship caused by natural disasters, fires or accidents. Additional measures aim to simplify administrative procedures, digitise claim processing, and allocate compensation funding to the appropriate budgetary level.

The proposal seeks to resolve inconsistencies in the current legal framework and align compensation responsibilities with practical realities.