“Downsizing" means a process of evaluating, classifying and making those failing to satisfy job requirements redundant, and settle severance packages to laid-off employees. Thus, what policies and regimes are officials subject to downsizing entitled to according to Vietnam’s regulations?
Article table of contents
According to the Decree No. 108/2014/NĐ-CP of Vietnam’s Government guided by Joint Circular No. 01/2015/TTLT-BNV-BTC (expires from January 01, 2022), officials subject to downsizing are entitled to the following policies and regimes:
First: Early retirement
- Displaced employees 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:
+ Be entitled to pension policies under laws on social insurance of Vietnam and do not have pensions deducted;
+ Receive 03-month salary for each early retirement year;
+ Receive 05-month salary for the first 20 working years with full social insurance premiums;
+ From the 21st working year onwards, each working year with social insurance premiums paid shall be granted a half of 01-month salary.
- Displaced employees 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:
+ Get their pensions under laws on health insurance and do not have pensions deducted;
+ Receive 05-month salary for the first 20 working years with full social insurance premiums;
+ From the 21st working year onwards, each working year with social insurance premiums paid shall be granted a half of 01-month salary;
+ Be granted 03-month salary for each early retirement year.
- Displaced employees 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 shall be granted pensions under laws on social insurance and shall not have pensions deducted.
- Displaced employees 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 shall be granted pensions under laws on social insurance and shall not have pensions deducted.
Second: Labor transfer to organizations unfunded by the State budget
Displaced employees 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 each working year with full social insurance premiums.
Third: Immediate resignation
Regarding employees who are subject to downsizing and are under 53 years old (for men) or under 48 years old (for women) and ineligible for early retirement as prescribed voluntarily resign, they shall receive the following allowances when they apply for immediate resignation:
- 3 month's salary;
- 1,5 month's salary for each working year with full payment of social insurance premiums.
Concurrently, employees who are subject to downsizing and are under 58 years old (for men) or under 53 years old (for women) and ineligible for early resignation as prescribed voluntarily resign, they shall receive the above-mentioned allowances.
Fourth: Resignation after vocational training
Employees who are under 45 years old, disciplined, healthy, responsible and take charge of positions irrelevant to their qualifications wishing to resign their jobs, they are provided vocational training and receive the following allowances:
- The full current monthly salary and still be paid social insurance and health insurance premiums during the vocational training for maximum 06 months;
- An allowance equal to 06-month salary;
- 03 month salary after finishing their vocational training courses;
- A half of monthly salary for the each working years with full social insurance premiums;
- The vocation training duration is recognized as working period but it is not included in the seniority.
Fifth: Benefits to former directors or those transferred to lower-ranks with lower allowances
Officials or public employees 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 whose remaining term of the newly appointed posts is under 06 months shall have their higher allowance reserved for 06 months.
Ty Na
- Key word:
- Downsizing
- officials
