04 policies that officials subject to downsizing in Vietnam are entitled to

04 policies that officials subject to downsizing in Vietnam are entitled to (Internet image)

1. Early retirement policies

According to the provisions of Article 8 of Decree 108/2014/ND-CP of the Government on downsizing policies in Vietnam, displaced employees stipulated in Article 6 hereof being 50 years old to 53 years old (for men) and 45 years old to 48 years old (for women), paying social insurance premiums for at least 20 years and working in heavy, dangerous or hazardous industries on the list jointly released by the Ministry of Labor, War Invalids and Social Affairs and Ministry of Health for at least 15 years; or working for in areas having region-based allowances of at least 0.7 for at least 15 years shall benefit from the following welfares, besides pension policies under laws on social insurance:

• Do not have pensions deducted;

• Receive 03-month salary for each early retirement year for individuals being between full fifty five years and full sixty years old for men or between full fifty years and full fifty five years old for women and having performed heavy, hazardous or dangerous occupations or jobs on the list of those promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Health Ministry for full fifteen years, or having worked in regions with regional allowance coefficient of 0.7 or more for full fifteen years. 

• Receive 05-month salary for the first 02 working years with full social insurance premiums. From the 21st working years onwards, each working years with social insurance premiums paid shall be granted a half of 01-month salary.

Officials and public employees subject to downsizing being from 55 years old to 58 years old (for men) and 50 years old to 53 years old (for women), paying social insurance premiums for at least 20 years shall get their pensions under laws on health insurance and welfares prescribed as follows:

• Do not have pensions deducted;

• Receive 05-month salary for the first 02 working years with full social insurance premiums. From the 21st working years onwards, each working years with social insurance premiums paid shall be granted a half of 01-month salary.

• 03-month salary for each early retirement years compared to the provisions in Point a, Clause 1, Article 54 of the Law on Social Insurance.

Officials and public employees subject to downsizing, they shall be granted pensions under laws on social insurance and shall not have pensions deducted if they fall into the following cases:

• Being from 53 years to 55 years old (for men) and 48 years old to 50 years old (for women), and paying social insurance premiums for at least 20 years and working in heavy, dangerous or hazardous industries on the list jointly released by the Ministry of Labor, War Invalids and Social Affairs and Ministry of Health for at least 15 years; or working for in areas having region-based allowances of at least 0.7 for at least 15 years

• Being from 58 years to 60 years old (for men) and 53 years old to 55 years old (for women), paying social insurance premiums for at least 20 years

2. Policies for cases of labor transfer to organizations unfunded by the State budget in Vietnam

According to the provisions of Article 9 of Decree 108/2014/ND-CP, officials and public employees subject to downsizing working for organizations that are not funded by the State budget shall receive the following allowances:

• The current 03-month salary;

• 1/2-month salary for the each working years with full social insurance premiums

The policy specified above shall not apply to the following cases:

• Employees who are retained as the public service providers converts into enterprises or privatization;

• Displaced employees who are 57 years old or older (for men) and 52 years or older (for women) paying their social insurance premiums for at least 20 years;

• Displaced employees who are 52 years old or older (for men) and 47 years or older (for women) paying their social insurance premiums for at least 20 year and working in heavy, dangerous and hazardous industries on the list jointly released by the Ministry of Labor, War Invalids and Social Affairs and Ministry of Health for at least 15 years; or those working for in areas having region-based allowances of at least 0.7 or higher .

3. Resignation policies

Article 10 of Decree 108/2014/ND-CP stipulates 02 resignation policies for officials, and public employees subject to downsizing as follows:

Note: Employees specified in clauses 1 and 2 of this Article have their duration of social insurance premium payment reserved and receive their social insurance benefits in once under laws on social insurance ; and do not benefit from resignation policies under the Decree 46/2010/ND-CP on resignation and procedures for retirement of officials dated April 27, 2010 of the Government and the Decree 29/2012/ND-CP on recruitment, employment and management of public employees dated April 12, 2012 of the Government.

4. Policy for those who cease to hold leadership positions or are appointed or elected to other positions with lower new leadership allowances due to organizational reorganization

According to the provisions of Article 11 of Decree 108/2014/ND-CP, officials or public employees subject to downsizing who are no longer directors or transferred to lower-ranks with lower allowances shall receive the higher allowances to the end of the term for such appointed position.

Those their remaining term of the newly appointed posts is under 06 months shall have their higher allowance reserved for 06 months.

Le Vy

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