What benefits do public employees and employees receive upon resignation under Decree 178?
What benefits do public employees and employees receive upon resignation in Vietnam under Decree 178?
According to Article 10 of Decree 178/2024/ND-CP, policies regarding resignation for public employees and employees in agencies, organizations, units, and armed forces due to restructuring are regulated as follows:
- Eligible public employees and employees for resignation policies:
Public employees and employees at least 2 years from retirement age as prescribed in Appendix I, Appendix II issued with Decree 135/2020/ND-CP and do not qualify for early retirement policies under the following two cases:
+ Public employee leaders, public employees working under labor contract policies in agencies, organizations, units, and armed forces due to restructuring;
+ Persons working under labor contract policies as per labor law before January 15, 2019, and persons working under labor contract policies applied as official policies (hereinafter referred to as employees) in agencies, organizations, units, and armed forces due to restructuring.
- Resignation policies for public employees and employees due to restructuring are as follows:
Public employees and employees mentioned above, if they resign, will receive the following benefits:
(1) Receive severance allowance:
- For those resigning within the first 12 months from the restructuring decision by competent authorities, a severance allowance of 0.8 months of the current salary multiplied by the number of months counted for severance allowance is granted.
- For those resigning from the 13th month onwards from the restructuring decision by competent authorities, an allowance of 0.4 months of the current salary multiplied by the number of months counted for severance allowance is granted.
(2) Receive an allowance of 1.5 months of current salary for each year of service with compulsory social insurance contribution.
(3) Retain social insurance contribution time or receive a one-time social insurance payout according to social insurance law.
(4) Receive unemployment insurance according to unemployment insurance law.
What benefits do public employees and employees receive upon resignation under Decree 178? (Image from the Internet)
What are criteria for evaluating public employees and employees to implement restructuring and resolve policies in Vietnam?
Based on Article 6 of Decree 178/2024/ND-CP, the guidelines for evaluating public employees and employees to implement restructuring and resolve policies are as follows:
Collective party committees, governments, and heads of each agency, organization, and unit must review and evaluate all officials and public employees, and employees within their management scope based on task performance results in the last 3 years according to the following criteria:
(1) Criteria for evaluating ethical quality, responsibility spirit, sense of discipline, discipline in carrying out tasks or missions of officials and public employees, and employees.
(2) Criteria for evaluating professional competence, skills; ability to meet the requirements for progress, time, quality in executing regular and sudden tasks or missions.
(3) Criteria for evaluating work results, products associated with the functions and tasks of the agency, organization, unit that officials and public employees, and employees have achieved.
(4) Regarding officials and public employees evaluated as having prominent qualities and capacities, they must meet the above three criteria, and at the same time, ensure criteria for innovation, creativity, daring to think, daring to do, daring to take responsibility for the common good, and have outstanding achievements that bring benefits to the agency, organization, unit.
Is the severance allowance of public employees and employees subject to personal income tax in Vietnam?
According to point b.6, clause 2, Article 2 of Circular 111/2013/TT-BTC, it is stipulated as follows:
Taxable income
As prescribed in Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:
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- Income from salaries and wages
Income from salaries and wages is the income that employees receive from employers, including:
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b) The following allowances, benefits are excluded:
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b.6) Unexpected difficulty allowance, labor accident allowance, occupational disease allowance, one-time allowance for childbirth or adoption, maternity policy levels, convalescence and health recovery post-maternity, reduced labor capacity allowance, one-time retirement allowance, monthly survivorship benefit, severance allowance, job loss allowance, unemployment benefits, and other allowances as prescribed by the Labor Code and Social Insurance Law.
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According to the above regulations, the severance allowance of public employees and employees is not counted in taxable personal income, thus the severance allowance is not subject to personal income tax.
