Policies on early retirement due to downsizing are regulated at the Decree No. 143/2020/NĐ-CP amending Decree No. 108/2014/NĐ-CP and Decree No. 113/2018/NĐ-CP on downsizing policies in Vietnam.
Article table of contents
Decree No. 143/2020/NĐ-CP of Vietnam’s Government amending and supplementing Article 8 of the Decree No. 108/2014/NĐ-CP as follows on early retirement policies as follows:
- Displaced employees having at least 5 years old and at least 2 years younger than the minimum retirement age specified in Clause 3 Article 169 of the Labor Code of Vietnam, 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 due to early retirement;
+ Receive 03-month salary for each early retirement year compared to provisions on the minimum age requirement of Clause 3 Article 169 of the Labor Code of Vietnam;
+ Receive 05-month salary for the first 20 working years with full social insurance premiums. From the 21st working years onwards, each working year with social insurance premiums paid shall be granted a half of 01-month salary;
- Displaced employees having at least 5 years old and at least 2 years younger than the retirement age specified in Clause 2 Article 169 of the Labor Code of Vietnam, paying social insurance premiums for at least 20 years, are entitled to the retirement regime as prescribed by the law on social insurance and the regimes specified at Points a and c Clause 1 of this Article, and a subsidy of 03-month salary for each early retirement year as specified in Clause 2 Article 169 of the Labor Code of Vietnam.
- Displaced employees having at least 2 years younger than the minimum retirement age specified in Clause 3 Article 169 of the Labor Code of Vietnam, 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 entitled to the retirement regime in accordance with the law on social insurance and shall not be deducted the pension rate due to premature retirement.
- Displaced employees having at least 5 years old and at least 2 years younger than the retirement age specified in Clause 2 Article 169 of the Labor Code of Vietnam, paying social insurance premiums for at least 20 years shall be entitled to the retirement regime in accordance with the law on social insurance and shall not be deducted the pension rate due to premature retirement.
Decree No. 143/2020/NĐ-CP has changed the age regulation in the regulations on downsizing to match the new retirement age that is about to take effect in the Labor Code 2019 of Vietnam.
The Decree No. 143/2020/NĐ-CP of Vietnam’s Government takes effect from December 10, 2020, but regulations on early retirement will be effective from January 01, 2021, which is consistent with the effect of the Labor Code 2019 of Vietnam.
Le Hai
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- Decree No. 143/2020/NĐ-CP
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