Early retirement policy for people subject to payroll downsizing in 2021 in Vietnam

Specifically, the following subjects in the cases of downsizing in 2021 are entitled to the early retirement policy without deduction of the retirement rate:

1. Male from full 50 years 03 months to full 53 years 03 months; female from full 45 years 04 months to full 48 years 04 months and have paid social insurance premiums for full 20 years or more, in which including full 15 years of doing heavy, hazardous, dangerous or particularly heavy, toxic or dangerous occupations or jobs on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health of Vietnam or having full 15 years of working in an area with extremely difficult socio-economic conditions, including working time in a place with a regional allowance coefficient of 0.7 or more, in addition to enjoying the retirement regime as prescribed by the law on social insurance, they are also entitled to the following regimes:

- No deduction of the pension rate due to early retirement;

- Receive 03 months of salary allowance for each year of retirement before the age of 55 years and 03 months for male, 50 years and 04 months for female;

- Receive a subsidy of 5 months' salary for the first twenty years of work, fully paying social insurance. From the twenty-first year onwards, for each working year with which social insurance premiums are paid, a subsidy of 1/2 (one-half) of the monthly salary.

2. Male from full 55 years 03 months to full 58 years 03 months; female from full 50 years 04 months to full 53 years 04 months and having paid social insurance premiums for full 20 years or more, are entitled to the retirement regime as prescribed by law on social insurance and the following regimes:

- No deduction of the pension rate due to early retirement;

- Receive 03 months of salary allowance for each year of retirement before the age of 60 years and 03 months for male, 55 years and 04 months for female;

- Receive a subsidy of 5 months' salary for the first twenty years of work, fully paying social insurance. From the twenty-first year onwards, for each working year with which social insurance premiums are paid, a subsidy of 1/2 (one-half) of the monthly salary.

3. Male from full 53 years 03 months to full 55 years 03 months; female from full 48 years 04 months to full 50 years 04 months and have paid social insurance premiums for full 20 years or more, in which including full 15 years of doing heavy, hazardous, dangerous or particularly heavy, toxic or dangerous occupations or jobs on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health of Vietnam or having full 15 years of working in an area with extremely difficult socio-economic conditions, including working time in a place with a regional allowance coefficient of 0.7 or more, they are entitled to the retirement regime as prescribed by the law on social insurance and are not deducted from the pension rate due to early retirement.

4. Male from over 58 years 03 months to under 60 years 03 months, female from over 53 years 04 months to under 55 years 04 months and have paid social insurance premiums for full 20 years or more, are entitled to the retirement regime as prescribed by the law on social insurance and not be deducted from the pension rate due to early retirement.

The above contents are specified in Clause 2 Article 1 of Decree No. 143/2020/NĐ-CP of Vietnam’s Government, amending and supplementing Article 8 of Decree No. 108/2014/NĐ-CP, effective from January 01, 2021. LAWNET always updates and analyzes the latest regulations on early retirement policies for employees, officials, public employees ect. To receive free news, readers can register HERE.

Hai Thanh

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