Regulations on conditions and policies for early retirement in Vietnam from January 1, 2025
What are the conditions for early retirement policies in Vietnam?
Based on Clause 1, Article 3 of Decree 177/2024/ND-CP regulating pre-age retirement policies:
Article 3. Pre-age retirement regime
- Conditions for receiving pre-age retirement policies
a) The individuals specified in Clauses 1, 2, and 3, Article 2 of this Decree do not meet the conditions regarding age for re-election or re-appointment as per the provisions of the competent authority, or they meet the age conditions but fall under the provisions of Clause 4, Article 2, or are subjects stipulated in Clause 5, Article 2 of this Decree;
b) By the retirement date, have sufficient working time with mandatory social insurance contributions (including probation and internship) to receive a pension as prescribed by social insurance law at the time of policy enjoyment. Retirement age is determined according to labor law at the time of resignation or retirement;
c) Submit a voluntary application for early retirement and receive approval from the competent authority.
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The conditions for receiving pre-age retirement policies are as follows:
[1] Applicable to the following subjects:
- Officials holding specialized positions elected for terms in agencies of the Communist Party of Vietnam, State, Vietnam Fatherland Front, political-social organizations at the central, provincial, district, and commune levels, but not meeting age conditions for re-election, re-appointment at the same level:
+ Officials who are Vietnamese citizens, elected, approved, or appointed to hold positions according to tenure in agencies of the Communist Party of Vietnam, State, political-social organizations at the central level, in provinces and cities under central authority (collectively referred to as provincial level), in districts, urban districts, district-level towns, cities under provincial authority (collectively referred to as district level), within payroll and receiving salary from the state budget.
+ Commune-level officials, who are Vietnamese citizens, elected to hold positions according to terms in the Standing Committee of People's Councils, People's Committees, Secretary, Deputy Secretary of the Communist Party, heads of political-social organizations; commune-level employees are Vietnamese citizens recruited to hold professional positions in commune-level People's Committees, within payroll and receiving salary from the state budget.
- Officers, professional soldiers, national defense public employees, people working in encryption entitled to military pay in agencies, units under the People's Army and People's Public Security holding positions in the structure to participate in Party committees, special deputy committees at the same level but do not meet the age conditions for re-election at the same level.
- Civil servants holding time-limited appointive positions in the structure to participate in Party committees at the same level but do not meet the age conditions for re-election to the Party committee (including positions such as Chairman, Vice Chairman of district-level People's Committees, district-level towns, wards where urban governance is implemented; Commanders of commune-level military command).
[2] Not meeting the age conditions for re-election or re-appointment as per the provisions of the competent authority or having sufficient age for re-election, re-appointment but falling into the following cases:
- Are subjects stipulated in [1] with sufficient age conditions for re-election, re-appointment at the same level but have working time from the start of the congress organization from 30 to 60 months to reach retirement age, or due to the arrangement of Party committee personnel, personally wish to retire and have approval from the competent authority.
- Officials within the jurisdiction of the Politburo, Secretariat management permitted by the competent authority for work cessation, retirement according to Notice Conclusion No. 20-TB/KL dated September 8, 2022, of the Politburo.
[3] By the retirement date, having sufficient working time with mandatory social insurance contributions (including probation and internship) to receive a pension as per social insurance law at the time of policy enjoyment. Retirement age is determined according to labor law at the time of resignation or retirement;
[4] Submit a voluntary application for early retirement and receive approval from the competent authority.
Regulations on conditions and policies for early retirement in Vietnam from January 1, 2025 (Image from the Internet)
What policies are for early retirement from January 1, 2025 in Vietnam?
Based on Clause 2, Article 3 of Decree 177/2024/ND-CP, the policies afforded when retiring before the eligible age are as follows:
- Entitled to a pension and other policies according to social insurance law and not subject to a reduction in the pension percentage for retiring early for up to 5 years (60 months).
- Receive a gratuity equivalent to 5 months' current salary at the retirement time for each year of early retirement.
- Receive a gratuity equivalent to 5 months' current salary for the first 20 years of working with mandatory social insurance contributions; from the 21st year onward, for each additional year of work with mandatory social insurance contributions, receive a gratuity equivalent to 0.5 months' current salary.
In cases where there are 15 years or more of work with mandatory social insurance contributions and the subject is eligible for pension according to social insurance law at resignation, they are entitled to a gratuity equivalent to 5 months' current salary for the first 15 years of work.
From the 16th year onward, for each year of work with mandatory social insurance contributions, receive a gratuity equivalent to 0.5 months' current salary.
- For cases with position salary, if rank 1 of the current position has been held for 48 months or more, move up to rank 2 of the current position to retire.
- For cases with professional and administrative pay and leadership position allowance, if not yet reaching the final salary grade in the current rank and lacking 1 to 12 months to qualify for regular salary raises, an early grade raise shall be granted.
- The pre-age retirement period may be considered as working time towards awards for contributions if the subject is eligible for contribution awards as per competition and commendation law.
- Eligible for rank promotion, salary raise as per legal provisions.
- For commune-level officials working in areas with particularly difficult socio-economic conditions (including periods in areas with regional allowance coefficients of 0.7 or higher before January 1, 2021) according to legal provisions; commune-level officials with military or police service and recognized by the State with decorations, when lacking up to 2.5 years (30 months) of mandatory social insurance contributions to qualify for retirement policies, one-time social insurance premium support shall be provided for the missing period.
For periods exceeding 30 months, voluntary social insurance contributions for the excess period shall be permitted; payment methods, rates, benefits, and associated details shall comply with social insurance law.
- Not subject to a reduction in the pension percentage due to early retirement for the exceeding period of more than 5 years (if any) if one-time voluntary social insurance contributions are made for the exceeding time; payment methods, rates, benefits, and associated details shall comply with social insurance law.
- Preservation of social insurance contribution time and receiving a one-time gratuity for each year of work with mandatory social insurance contributions calculated as 0.5 months' current salary.
- Eligible for one-time social insurance benefits as per social insurance law.
Can employees, upon reaching retirement age, unilaterally terminate employment contracts in Vietnam?
Based on Clause 2, Article 35 of the Labor Code 2019 specifying the right of employees to unilaterally terminate employment contracts:
Article 35. Right of employee to unilaterally terminate the employment contract
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- employees have the right to unilaterally terminate the employment contract without prior notice in the following cases:
a) Not being assigned tasks according to agreed job, workplace, or not provided with working conditions as agreed, except as stipulated in Article 29 of this Code;
b) Wages not fully paid or paid late, except as stipulated in Clause 4, Article 97 of this Code;
c) Subjected to maltreatment, physical abuse, or verbal abuse, actions affecting health, dignity, or honor; forced labor;
d) Sexual harassment in the workplace;
e) Female laborers having to stop working due to pregnancy as per Clause 1, Article 138 of this Code;
f) Reached retirement age as defined in Article 169 of this Code, unless otherwise agreed by the parties;
g) The employer provides dishonest information as per Clause 1, Article 16 of this Code, affecting the performance of the employment contract.
Employees who reach retirement age have the right to unilaterally terminate the employment contract without prior notice.
