Who is eligible for early retirement when restructuring the organizational apparatus in Vietnam?
Who is eligible for early retirement when restructuring the organizational apparatus in Vietnam?
Based on Article 7 of Decree 178/2024/ND-CP on policies for individuals retiring before the stipulated age:
Article 7. Policies for those retiring before the stipulated age
Individuals specified in Clause 1, Article 2 of this Decree who retire before the stipulated age are entitled to the following policies:
- Eligible for a one-time retirement allowance for the early retirement period:
a) For individuals who retire within the first 12 months from the date of the organizational restructuring decision by the competent authority:
For those who are up to 5 years younger than the retirement age specified in Appendix I and Appendix II issued with Decree 135/2020/ND-CP, they shall receive an allowance equivalent to 1 month's current salary multiplied by the number of months of early retirement compared to the retirement age.
For those who are from over 5 years to 10 years younger than the retirement age specified in Appendix I issued with Decree 135/2020/ND-CP, they shall receive an allowance equivalent to 0.9 month's current salary multiplied by 60 months.
b) For individuals retiring from the 13th month onwards from the date of the organizational restructuring decision by the competent authority, they shall receive 0.5 times the allowance specified in point a, Clause 1 of this Article.
[...]
Thus, the entities eligible for early retirement during organizational restructuring include:
[1] Officials and public employees in leadership, management, and regular officials and public employees.
[2] Officials and employees at the commune level.
[3] Individuals working under labor contract policies as prescribed by labor law before January 15, 2019, and those working under labor contract policies applied as officials.
[4] Officers, professional military personnel, defense workers, and public employees in the Vietnam People's Army.
[5] Officers, non-commissioned officers with salary, police workers, and contractual workers receiving salaries from the state budget in the People's Public Security.
[6] Employees working in cryptographic organizations.
Who is eligible for early retirement when restructuring the organizational apparatus in Vietnam? (Image from the Internet)
Can an employee in Vietnam retire earlier than the specified age?
Based on Article 169 of the Labor Code 2019 stipulating the retirement age:
Article 169. Retirement age
- Employees meeting the conditions regarding the time of paying social insurance premiums as stipulated by the law on social insurance are entitled to pensions upon reaching the retirement age.
- The retirement age of employees in normal working conditions is adjusted according to the road map until reaching 62 years for male employees in 2028 and 60 years for female employees in 2035.
Starting from 2021, the retirement age of employees in normal working conditions is 60 years and 3 months for male employees and 55 years and 4 months for female employees; thereafter, it increases each year by 3 months for male employees and 4 months for female employees.
- Employees suffering from reduced working capacity; working in particularly arduous, hazardous, or dangerous jobs; working in arduous, hazardous, or dangerous jobs; working in areas with especially difficult socio-economic conditions may retire at a younger age but not more than 5 years earlier than the stipulated age in Clause 2 of this Article, except where otherwise provided by law.
[...]
According to the above regulations, starting from 2021, the retirement age of employees in normal working conditions is 60 years and 3 months for male employees and 55 years and 4 months for female employees; thereafter, each year increases by 3 months for male employees and 4 months for female employees.
The retirement age for employees in normal working conditions is adjusted according to the road map until it reaches 62 years for male employees in 2028 and 60 years for female employees in 2035.
At the same time, employees suffering from reduced working capacity; working in particularly arduous, hazardous, or dangerous jobs; working in arduous, hazardous, or dangerous jobs; working in areas with especially difficult socio-economic conditions may retire at a younger age but not more than 5 years earlier than stipulated.
Employees retiring in 2025 have the minimum retirement age of 56 years and 3 months for male employees and 51 years and 8 months for female employees (according to Article 5 of Decree 135/2020/ND-CP)
Vietnam: Is it necessary to notify the employee when an employee reaches retirement age and the labor contract is terminated?
Based on Clause 2, Article 36 of the Labor Code 2019 on the right to unilaterally terminate labor contracts by the employee:
Article 35. The right to unilaterally terminate labor contracts by the employee
[...]
An employee has the right to unilaterally terminate the labor contract without prior notice in the following cases:
a) Not being assigned to the agreed job or workplace or not being guaranteed the agreed working conditions, except for the cases stipulated in Article 29 of this Code;
b) Not being paid in full or not being paid on time, except for the cases stipulated in Clause 4, Article 97 of this Code;
c) Being mistreated, assaulted by the employer, or subject to words, acts that humiliate, affect health, dignity, honor; being forced into labor;
d) Being sexually harassed in the workplace;
dd) Pregnant female employees must take leave according to Clause 1, Article 138 of this Code;
e) Reaching the retirement age as stipulated in Article 169 of this Code, except where otherwise agreed by the parties;
g) The employer provides incorrect information as prescribed in Clause 1, Article 16 of this Code, affecting the performance of the labor contract.
According to the above regulations, employees who have reached the retirement age as stipulated have the right to unilaterally terminate the labor contract without prior notice, unless otherwise agreed by the parties.
