Decree 178: What are policies and benefits for officials retiring before the prescribed age in Vietnam?

Decree 178: What are policies and benefits for officials retiring before the prescribed age in Vietnam?

On December 31, 2024, the Government of Vietnam promulgated Decree 178/2024/ND-CP regarding policies for officials, public employees, workers, and armed forces in the reorganization of the political system's apparatus, effective from January 1, 2025.

Under Article 7 of Decree 178/2024/ND-CP, specific policies for those retiring before the eligible age are stipulated as follows:

(1) Entitlement to a one-time retirement allowance for early retirement:

- For individuals retiring within the first 12 months from the issuance of the organizational restructuring decision by the competent authority:

In cases where the individual's age is five years or less to the retirement age specified in Appendix I and Appendix II issued with Decree 135/2020/ND-CP, they shall receive an allowance equivalent to one month's current salary multiplied by the number of early retirement months compared to the official retirement time.

For those within five to ten years of the retirement age specified in Appendix I issued with Decree 135/2020/ND-CP, the allowance is 0.9 of the current monthly salary multiplied by 60 months.

- For individuals retiring from the 13th month onwards since the execution of the restructuring decision, the allowance is 0.5 times the allowance at point a, clause 1 of this Article.

(2) Entitlement to policies for early retirement according to years of service with compulsory social insurance contributions and the number of early retirement years as follows:

- If an individual's age is from two to five years to the retirement age specified in Appendix I issued with Decree 135/2020/ND-CP and has sufficient service time with compulsory social insurance contributions to receive a pension according to the law, in addition to the pension under social insurance law, they are entitled to the following policies:

No pension rate reduction due to early retirement;

An allowance equivalent to five months of the current salary for each year of early retirement compared to the retirement age specified in Appendix I issued with Decree 135/2020/ND-CP;

An allowance equivalent to five months of the current salary for the first 20 working years with compulsory social insurance contributions. From the 21st year onward, each year with such contributions receives an allowance of 0.5 months of the current salary.

- For those with age over five to ten years to the retirement age specified in Appendix I issued with Decree 135/2020/ND-CP and sufficient compulsory social insurance contributions to receive a pension, in addition to the pension, they are entitled to:

No pension rate reduction due to early retirement;

An allowance of four months of the current salary for each year of early retirement as per Appendix I of Decree 135/2020/ND-CP;

An allowance of five months of the current salary for the first 20 working years with compulsory social insurance contributions. From the 21st year onward, each year receives an allowance of 0.5 months of the current salary.

- If an individual's age is from two to five years to the retirement age specified in Appendix II with necessary time of service for compulsory social insurance contributions, they qualify for a pension without reduction, and engage in jobs listed as heavy, hazardous, or special conditions mandated by the Ministry of Labor, Invalids and Social Affairs or work in regions with special socio-economic difficulties, they are entitled to:

No pension rate reduction for retiring early;

An allowance of five months' salary for each year of early retirement according to Appendix II of Decree 135;

An allowance for 20 years of service as previously stipulated.

- For individuals less than two years to the retirement age in Appendix I or II with enough service for a pension, without reduction for early retirement.

(3) Officials and public employees eligible for early retirement as per clauses 1 and 2 of Article 7 of Decree 178/2024/ND-CP fall under the category for commendation for contributions as per Law on Emulation and Commendation and Decree 98/2023/ND-CP, and the early retirement time period is recognized towards fulfilling the official's tenure for an award.

Officials not eligible for contributions awards may receive suitable awards for achievements.

Other article:

Conditions for early retirement policies of officials in Vietnam from 2025

Guidelines for determining the implementation date for policies under Decree 178 in Vietnam

According to clause 1, Article 3 of Circular 1/2025/TT-BNV, the methodology for determining the effective date of policies is specified as follows:

Article 3. Methodology for determining the date and monthly salary for policy calculation

1. The date of the organizational restructuring decision is the effective date of documents issued by competent authorities of the Communist Party, the State, or political-social organizations regarding organizational restructuring and administrative unit reorganization.

a) Within 12 months from the stated date, officials and employees authorized to retire (early retirement or resignation) are subject to policies effective within the first 12 months.

b) Beyond the time frame established in point a of this clause, policies are applied as stipulated from the 13th month onward.

...

Hence, the policy implementation date under Decree 178 is determined by the effective date of the issued organizational restructuring document by the competent authority. If officials and employees are authorized to retire within 12 months from this date, they are entitled to policies effective for the first 12 months. After this period, policies will be applied as regulated from the 13th month forward.

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