Vietnam issues Official Dispatch 1767 BTC TCCB of 2025 on principles for resolving policies on early retirement, termination of employment as per Decree 178?

Vietnam issues Official Dispatch 1767 BTC TCCB of 2025 on principles for resolving policies on early retirement, termination of employment as per Decree 178?

Based on Subsection 2, Section 1 of Official Dispatch 1767/BTC-TCCB of 2025, the principles for resolving policies are stipulated as follows:

- Priority in resolving policies for those whose remaining working time until retirement age is shorter.

- Policies are not considered for the subjects in Clause 1, Section 1 of Official Dispatch 1767/BTC-TCCB of 2025 under any of the following circumstances:

+ Females who are pregnant, on maternity leave, or raising children under 36 months of age, except in cases where the individual voluntarily leaves employment.

+ Individuals under disciplinary review, criminal prosecution, or inspection due to signs of violation.

- No policy resolution for those subjects in Clause 1 of this Section with a consecutive two-year rating of unsatisfactory performance.

- The decision-making point for organizational restructuring of the competent authority is the effective date of the document establishing, stipulating the name of the new unit, specifically:

+ For administrative organizations and public service providers under the Ministry’s organizational structure: Decree specifying the Ministry's functions, tasks, powers, and organizational structure;

+ For public service providers under the Ministry: Decision of the Prime Minister of the Government of Vietnam issuing the list of public service providers under the Ministry;

+ For public service providers under Departments of the Ministry: Decision of the Minister stipulating the functions, tasks, powers, and organizational structure of the Department.

Within 12 months from the above stipulation period, officials and public employees and workers decided by the competent authority to leave employment (early retirement or termination) will enjoy policies as per the regulations of the first 12 months.

After the stipulated period, policies follow regulations from the 13th month onwards.

- The time for considering benefits for early retirement or termination of employment is determined as the time to submit dossiers to the agency advising on personnel organization and the agency advising on finance according to Point a, Clause 5, Section 3 of Official Dispatch 1767/BTC-TCCB of 2025.

Vietnam issues Official Dispatch 1767 BTC TCCB of 2025 on principles for resolving policies on early retirement, termination of employment as per Decree 178? (Image from the Internet)

What are conditions and criteria for resolving policies on early retirement, termination of employment in Vietnam?

Based on Section 2 of Official Dispatch 1767/BTC-TCCB of 2025, conditions and criteria for resolving policies are stipulated as follows:

*Subjects required to leave employment:

The criteria for evaluating subjects required to leave employment are as follows:

- Do not meet requirements for evaluation criteria stipulated in Clauses 1, 2, 3 of Article 6 of Decree No. 178/2024/ND-CP.

(The Ministry of Finance will provide specific evaluation criteria in a separate document).

*Subjects voluntarily terminating employment:

Officials, public employees, and workers with voluntary requests for early retirement or termination of employment must meet one of the following conditions:

(1) Case of early retirement due to remaining working time of 10 years or less until retirement age stated in Appendix 1 issued with Decree 135/2020/ND-CP or 5 years or less until retirement age stated in Appendix 2 issued with Decree 135/2020/ND-CP and have sufficient social insurance contributions to receive a pension as per social insurance law.

(2) Case of voluntary termination when meeting one of the following conditions:

- Officials, public employees holding leadership positions at units exceeding the number of leaders as regulated by the Communist Party, the State, or officials and public employees holding leadership positions at units undergoing restructuring, holding lower leadership positions, or ceasing leadership roles post-restructuring.

- Officials, public employees, and workers rated satisfactory or lower in quality for 2 out of the last 3 years (except for cases with two consecutive years rated as unsatisfactory).

- Officials, public employees, and workers in the immediately preceding year or in the year of policy consideration for voluntary termination have illness-related leave days confirmed by the Social Insurance agency paying sick leave benefits according to current regulations equal to or exceeding the maximum sick leave days as per the Law on Social Insurance, or suffering from diseases listed for long-term treatment per Law on Social Insurance 2014.

- Cases where legal changes result in individuals not meeting the educational, professional training standards for their job positions, ranks of official, public employee rank, or leadership and management position requirements. They are arranged in other job positions but voluntarily terminate employment.

- Specific conditions due to unit characteristics (if any). Heads of units organized by a vertical system, the State Securities Commission, and public service providers under the Ministry of Finance are tasked to specifically guide the conditions based on their unit systems to identify subjects eligible for benefits.

In cases where all the above have been reviewed and arranged but are still insufficient to meet reduction requirements for officials and public employees, if other individuals have appropriate aspirations and reasons, meet the requirements per Communist Party, and State regulations, the direct management or employing organization will report to the competent authority to approve early retirement or voluntary termination as per decentralization for decision-making.

Are pension incomes subject to personal income tax in Vietnam?

According to Clause 10, Article 4 of The Personal Income Tax Law 2007 (supplemented by Clause 3, Article 2 of The Amended Law on Taxes 2014; amended by Clause 2, Article 1 of The Amended Personal Income Tax Law 2012), the income exempt from PIT is stipulated as follows:

Income exempt from tax

...

9. Income from working nights, overtime paid higher than daytime or regular working hours as stipulated by law.

10. Pension paid by the Social Insurance Fund; pension paid monthly by voluntary pension funds.

11. Income from scholarships, including:

a) Scholarships funded by the state budget;

b) Scholarships received from domestic and foreign organizations under the organizations' educational promotion programs.

...

Thus, according to the above regulations, pension income is exempt from personal income tax (PIT).