Instructions for calculating the age for early retirement according to downsizing in Vietnam

Instructions for calculating the age for early retirement according to downsizing in Vietnam (Internet image)

1. Subjects of downsizing that have retirement age under normal working conditions.

For cases eligible for downsizing with an age at least 5 years lower than the retirement age in the year of downsizing prescribed in Clause 2, Article 4 of Decree 135/2020/ND-CP and having paid social insurance for 20 years or more, depending on each case, they will enjoy the premature retirement policy as prescribed in Clause 2 or Clause 4, Article 8 of Decree 108/2014/ND-CP (now amended in Clause 2, Article 1 of Decree 143/2020/ND-CP).

Roadmap to increase retirement age under current normal working conditions:

Example 1:

***Mr. N was born in October 1964 and has been paying social insurance for 21 years. If payroll streamlining is implemented in August 2021, Mr. N will be 56 years and 10 months old, 3 years and 5 months lower than the 2021 retirement age specified in Clause 2, Article 4 of the Decree 135/2020/ND-CP. Therefore, Mr. N is entitled to the premature retirement policy as prescribed in Clause 2, Article 8 of Decree 108/2014/ND-CP (now amended and supplemented in Clause 2, Article 1 of Decree 143/2020/ND-CP).

***Mrs. M was born in May 1967 and has been paying social insurance for 20 years. If staff streamlining is implemented for Ms. M in January 2022, Ms. M at that time will be 54 years and 08 months old, 1 year lower than the retirement age in 2022 (stipulated in Clause 2, Article 4 of Decree 135/2020/ND-CP). Therefore, Ms. M is entitled to the premature retirement policy specified in Clause 4, Article 8 of Decree 108/2014/ND-CP (now amended and supplemented in Clause 2, Article 1 of Decree 143/2020/ND-CP).

2. Subjects of downsizing have a lower retirement age than the retirement age under normal working conditions.

In cases where the subjects of downsizing are people doing occupations or jobs that are heavy, hazardous, dangerous, or particularly heavy, toxic, or dangerous, or 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 before January 1, 2021), they will enjoy the early retirement policy when you meet the following conditions:

- Have a maximum age of 5 years lower than the retirement age in the year of downsizing.

- Have paid social insurance for 20 years or more.

- Have 15 years of working in a profession or job that is heavy, toxic, dangerous, or especially heavy, toxic, or dangerous on the list issued by the Ministry of Labor, War Invalids and Social Affairs; or have worked for 15 years in an area with extremely difficult socio-economic conditions.

Example 2:

***Mr. T was born in December 1967 and has 25 years of paying social insurance, including 16 years of doing heavy, toxic, and dangerous work according to the law. If payroll streamlining is carried out for Mr. T in February 2022, at that time, Mr. T's age is 54 years and 02 months, 1 year and 04 months lower than the retirement age of 2022 (stipulated in Clause 2, Article 5 of Decree 135/2020/ND-CP). Therefore, Mr. T will enjoy the premature retirement policy specified in Clause 3, Article 8 of Decree 108/2014/ND-CP (now amended and supplemented in Clause 2, Article 1 of Decree 143/2020/ND-CP).

***Mrs. B was born in November 1973 and has 20 years of social insurance payment, including 15 years of working in areas with extremely difficult socio-economic conditions according to the provisions of the law. If staff streamlining is implemented for Ms. B in November 2021, at that time Ms. B will be 48 years old, 2 years and 4 months lower than the retirement age of 2021 (stipulated in Clause 2, Article 5 of Decree 135/2020/ND-CP). Therefore, Ms. B will enjoy the premature retirement policy specified in Clause 1, Article 8 of Decree 108/2014/ND-CP (now amended and supplemented in Clause 2, Article 1 of Decree 143/2020/ND-CP).

Note: For cases that have been resolved by competent authorities for premature retirement according to the staff streamlining policy before the issuance of this Official Dispatch 4126/BNV-TCBC, there is no question of reconsideration.

Bao Ngoc

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