Severance Allowance Regime for Public Employees

Mr. Phat wants to ask if the Department of Education was correct in letting his mother go when she did not submit a resignation letter. Will his mother receive severance pay?

Regarding this matter, the Department of Home Affairs of An Giang Province has the following opinions:

Pursuant to Article 187 of the Labor Code concerning retirement age: “Employees who meet the requirements regarding the duration of social insurance contributions as prescribed by the Law on Social Insurance are entitled to retirement benefits when males reach the age of 60 and females reach the age of 55.” Mr. Huynh Tan Phat’s mother has reached the age of 55 (i.e., eligible for retirement as per the regulations), so the managing agency processing retirement procedures for his mother is in accordance with the regulations of the Labor Code and the Law on Public Employees 2010.

Point 1 of Official Dispatch No. 2806/BNV-CCVC dated June 29, 2015, from the Ministry of Home Affairs provides guidance on resolving professional matters as follows: “Public employees who have reached the retirement age as stipulated in Article 187 of the Labor Code are to retire and enjoy their pension according to Article 54 of the Law on Social Insurance or receive a one-time social insurance payment according to Article 60 of the Law on Social Insurance. Severance pay policies as per Decree No. 46/2010/ND-CP dated April 27, 2010, of the Government of Vietnam on resignation and retirement procedures for officials and Decree No. 29/2012/ND-CP dated April 12, 2012, of the Government of Vietnam on recruitment, utilization, and management of public employees do not apply.”

Therefore, the case of Mr. Huynh Tan Phat’s mother does not fall under the category for severance pay as per Decree 29/2012/ND-CP.

According to Chinhphu.vn

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