Is the pension rate reduced if a teacher retires early due to downsizing in Vietnam?

Are teachers who retire early due to downsizing subject to pension rate deduction in Vietnam?

Based on Point a, Clause 1, Article 5 of Decree 29/2023/ND-CP regulations on early retirement policy as follows:

Early Retirement Policy

1. The affected people who are subject to downsizing have an age lower by a maximum of 05 years and a minimum of 02 years compared to the retirement age stipulated in Appendix II issued together with Decree No. 135/2020/ND-CP dated November 18, 2020, of the Government of Vietnam, which defines the retirement age (hereinafter referred to as Decree No. 135/2020/ND-CP), and have 20 years or more of mandatory social insurance contributions, of which they have had at least 15 years doing heavy, hazardous, dangerous, or especially heavy, hazardous, dangerous work or at least 15 years working in areas with particularly difficult socio-economic conditions issued by the Ministry of Labor, Invalids and Social Affairs, including the time working in areas with a regional allowance factor of 0.7 or higher before January 1, 2021. Besides receiving a pension according to the laws on social insurance, they are also entitled to the following policies:

a) No pension rate deduction due to early retirement

b) Granted an allowance equivalent to 03 months’ average salary for each year of early retirement compared to the stipulated retirement age in Appendix II issued together with Decree No. 135/2020/ND-CP;

c) Granted an allowance equivalent to 05 months’ average salary for the first twenty years of work with mandatory social insurance contributions. From the twenty-first year onwards, for each year of work with mandatory social insurance contributions, an allowance equivalent to half a month’s salary is granted.

...Thus, teachers who retire early due to downsizing will not face pension rate deductions if they satisfy the conditions:- Have an age lower by a maximum of 05 years and a minimum of 02 years compared to the retirement age.- Have 20 years or more of mandatory social insurance contributions, including at least 15 years working in areas with particularly difficult socio-economic conditions issued by the Ministry of Labor, Invalids and Social Affairs, including the time working in areas with a regional allowance factor of 0.7 or higher before January 1, 2021.

Are teachers who retire early due to downsizing subject to pension rate deduction? (Image from Internet)

When are teachers not subject to downsizing in Vietnam?

Based on Article 4 of Decree 29/2023/ND-CP regulation on subjects not yet subject to downsizing as follows:

Subjects Not Yet Subject to downsizing

1. Those who are pregnant, on maternity leave, or raising a child under 36 months old, except in cases of voluntary downsizing.

2. Those who are under disciplinary consideration or criminal investigation or inspection due to signs of violation.

Thus, the following cases are not subject to downsizing:

- Teachers who are pregnant, on maternity leave, or raising a child under 36 months old, except in cases of voluntary downsizing.- Teachers who are under disciplinary consideration or criminal investigation or inspection due to signs of violation.

What principles must be ensured in downsizing in Vietnam?

Based on Article 3 of Decree 29/2023/ND-CP, the following principles must be ensured in downsizing:

- Ensure the leadership of the Communist Party, promote the supervisory role of political - social organizations and the people during the downsizing process.

- Link downsizing with organizing the apparatus towards streamlining, effective and efficient operation, and restructuring, improving the quality of officials and public employees according to job positions, suitable with the self-management mechanism of agencies, organizations, and units.

- Ensure the principles of democratic centralism, objectivity, fairness, publicity, transparency, and according to the provisions of law.

- Ensure prompt and full payment of policies for downsizing according to legal regulations, ensure the effective use of the state budget.

- The head must be responsible for the results of downsizing in the agency, organization, or unit under their management according to authority.

- If a person subject to downsizing is elected or recruited again to agencies, organizations, or units receiving state budget salaries within 60 months from the date of downsizing, they must return the allowance received to the agency, organization, or unit that paid the allowance.