What is Decree 178 on early retirement policies applicable to teachers in Vietnam about?

What is Decree 178 on early retirement policies applicable to teachers in Vietnam about?

Under the provisions in Clause 1, Article 2 of Decree 178/2024/ND-CP:

Regulated entities

1. Officials and public employees, individuals working under employment contracts in agencies, organizations, units, and armed forces due to organizational restructuring or administrative division reorganization at all levels (hereinafter referred to as organizational restructuring) as stipulated in Article 1 of this Decree, including:

a) Leading and managerial officials and public employees; officials and public employees;

…

Thus, public employees are one of the regulated entities of Decree 178 on early retirement policies.

Therefore, teachers who are public employees working in public schools are also entitled to the policies according to Decree 178/2024/ND-CP.

However, those who have already benefited from the policies prescribed in Decree 29/2023/ND-CP on downsizing before January 1, 2025, shall not benefit from the policies prescribed in Decree 178/2024/ND-CP.

What is Decree 178 on early retirement policies applicable to teachers in Vietnam about? (Image from the Internet)

What are early retirement policies applicable to teachers in Vietnam under Decree 178?

Under Article 7 of Decree 178/2024/ND-CP, regulations on early retirement policies for teachers are as follows:

(1) Teachers entitled to a lump-sum retirement allowance for early departure:

- Teachers who retire within the first 12 months from the decision to reorganize by competent authorities:

In cases of employees who are up to 5 years away from the retirement age as stipulated in Appendix I and Appendix II of Decree 135/2020/ND-CP, they shall receive an allowance equal to their current monthly salary for each month of early retirement compared to the retirement age.

In cases of employees who are more than 5 years to up to 10 years away from the retirement age as stipulated in Appendix I of Decree 135/2020/ND-CP, they shall receive an allowance equal to 0.9 of their current monthly salary multiplied by 60 months.

- Teachers who retire from the 13th month onwards from the decision to reorganize by competent authorities shall receive 0.5 times the allowance for teachers retiring within the first 12 months.

(2) Teachers entitled to early retirement policies based on the period of compulsory social insurance premium payment and the number of early retirement years:

- For teachers who are between 2 to 5 years away from the retirement age as stipulated in Appendix I of Decree 135/2020/ND-CP and have sufficient time to participate in compulsory social insurance to receive a pension as stipulated by social insurance law, in addition to receiving a pension as per social insurance law, they shall also receive the following policies:

+ Not being deducted from the pension ratio due to early retirement;

+ Receiving an allowance of 5 months' current salary for each year of early retirement compared to the retirement age stipulated in Appendix I of Decree 135/2020/ND-CP;

+ Receiving an allowance of 5 months' current salary for the first 20 years of working with compulsory social insurance. From the 21st year onwards, for each year of working with compulsory social insurance, an additional 0.5 month's salary is granted.

- For teachers who are between 5 to 10 years away from the retirement age as stipulated in Appendix I of Decree 135/2020/ND-CP and have sufficient time of compulsory social insurance premium payment to receive a pension as stipulated by social insurance law, in addition to receiving a pension as per social insurance law, they shall receive the following policies:

+ Not being deducted from the pension ratio due to early retirement;

+ Receiving an allowance of 4 months' current salary for each year of early retirement compared to the retirement age stipulated in Appendix I of Decree 135/2020/ND-CP;

+ Receiving an allowance of 5 months' current salary for the first 20 years of working with compulsory social insurance. From the 21st year onwards, for each year of working with compulsory social insurance, an additional 0.5 month's salary is granted.

- For teachers who are between 2 to 5 years away from the retirement age as stipulated in Appendix II of Decree 135/2020/ND-CP and have sufficient compulsory social insurance premium payment time to receive a pension as per social insurance law, with at least 15 years or more working in heavy, hazardous, dangerous, or particularly heavy, hazardous, dangerous occupations listed by the Ministry of Labor, Invalids and Social Affairs or having at least 15 years or more working in areas with special socio-economic difficulties listed by the Ministry of Labor, Invalids and Social Affairs including time working in areas with a regional allowance coefficient of 0.7 or more before January 1, 2021, they shall receive a pension as stipulated by social insurance law and not be deducted from their pension ratio for early retirement.

(3) Officials and public employees entitled to early retirement under Clauses 1 and 2, Article 7 of Decree 178/2024/ND-CP fall within the scope of commendations for their contributions as prescribed in the Law on Emulation and Commendation 2022 and Decree 98/2023/ND-CP. If they lack the required time for service in leadership positions at their retirement to be commended for their service, their early retirement tenure will count towards fulfilling the remainder of their electoral term or current appointment position to qualify for recognition of service according to the Law on Emulation and Commendation and Decree 98/2023/ND-CP.

For officials and public employees not eligible for contribution commendation, the competent authority will consider appropriate forms of commendation corresponding to their achievements.

What are the funding sources for implementing early retirement policies applicable to teachers in Vietnam under Decree 178?

According to Clause 2, Article 16 of Decree 178/2024/ND-CP, the funding sources for implementing early retirement policies applicable to teachers in Vietnam under Decree 178 are as follows:

- For public service providers self-financing regular and investment expenditures; public service providers self-financing regular expenditures: Funding for implementing policies shall come from the unit's service operation revenue and other lawful revenue sources.

- For public service providers with partial funding from the state budget for regular expenditures: Funding for implementing policies shall come from the unit's service operation revenue, the state budget, and other lawful revenue sources. The state budget will allocate funds to implement policies based on the number of employees receiving salaries from the state budget as authorized.

- For public service providers with regular expenditures fully funded by the state budget: Funding for implementing policies shall be provided by the state budget.