What benefits are officials in Vietnam entitled to when they resign?

What benefits are officials in Vietnam entitled to when they resign? (Internet image)

1. Eligibility for lump-sum social insurance allowance if requested

According to Article 60 of the Law on Social Insurance, officials and employees are entitled to a lump-sum social insurance allowance upon their request when falling in one of the following cases:

• They have reached the retirement age (Being full 60 years old, for men, or full 55 years old, for women) but have paid social insurance premiums for under full 20 years, or the age of between full 50 years and full 55 years old and have paid social insurance premiums for at least full 20 years, including the full 15 years spent in coal mines, but have paid social insurance premiums for under full 15 years and do not continue paying voluntary social insurance premiums;

• They settle abroad;

• They get a fatal disease, such as cancer, poliomyelitis, dropsy cirrhosis, leprosy, serious tuberculosis, or HIV infection progressing into AIDS, or other diseases as prescribed by the Ministry of Health;

The lump-sum social insurance allowance shall be calculated based on the number of years of social insurance premium payment; for each year of payment it must equal:

• 1.5 times the average monthly salary on which social insurance premiums are based, for the years of payment prior to 2014;

• 2 times the average monthly salary on which social insurance premiums are based for the years of payment since 2014;

• For a period of social insurance premium payment of under 1 year, the social insurance allowance must equal the paid premium amount but not exceed 2 times the average monthly salary on which social insurance premiums are based.

Note: The lump-sum social insurance allowance specified above is exclusive of the State’s monetary support for payment of voluntary social insurance premiums. For a period of social insurance premium payment of under 1 year, the social insurance allowance must equal the paid premium amount but not exceed 2 times the average monthly salary on which social insurance premiums are based.

In addition, the time for enjoying the lump-sum social insurance allowance is the time stated in decisions of social insurance agencies.

2. Eligibility for job discontinuation allowance

According to the provisions of Article 59 of the Law on Officials, guided by Article 5 of Decree 46/2010/ND-CP of the Government on providing for job discontinuation and retirement procedures applicable to officials, officials who discontinue their jobs will be entitled to a job discontinuation allowance as follows: For every working year, the allowance is equal lo 1/2 (half) of their respective current monthly wages, including the wages paid according to salary ranks and grades, position allowance, extra-seniority allowance, professional seniority allowance and wage reservation difference coefficient (if any). The lowest allowance level is equal to their current I (one) month's wage.

 The working duration used for job discontinuation allowance calculation is the total number of years of social insurance payment or the cumulated number if such working duration is interrupted for which job discontinuation or demobilization allowance has not yet been paid, including:

• The duration of working in agencies, organizations or units of the Communist Party of Vietnam, the State or socio-political organizations:

• The duration of working in the People's Army and/or the People's Public Security;

• The duration of working in state companies under the Enterprise Law:

• The duration of working under payroll quotas assigned by competent agencies to socio-politico-professional organizations, social organizations or socio-professional organizations:

• The duration of training or retraining they attended under decisions of their respective agencies, organizations or units;

• The duration of paid leaves under the labor law;

• The duration of sickness, maternity, labor accident, occupational disease, health restoration and rehabilitation leaves as prescribed by the law on social insurance;

• The duration during which they were disciplined or examined for penal liability, which was concluded as unjust and wrong by competent agencies or organizations;

• The duration of suspension from working under Article 81 of the Law on Officials;

• The duration of working under suspended sentences or non-custody reform judgments or rulings of courts.

The working duration defined above, if having odd months, will be calculated as follows:

• Under 3 (three) months will not be counted;

• Between full 3 (three) months and full 6 (six) months will be counted as equal to 1/2 (half) of a working year;

• Between over 6 (six) months and 12 (twelve) months will be counted as equal to 1 (one) working year.

In particular, officials are not entitled to unemployment benefits when they quit their jobs like ordinary workers

According to Article 4 of the Law on Officials, amended by Law 52/2019/QH14, officials are Vietnamese citizens who are recruited and appointed to positions corresponding to their job positions in the organizations of the Communist Party of Vietnam, the State, and socio-political organizations at the central, provincial, and district levels; in units of the People's Army of Vietnam who are not officers, professional soldiers, or defense workers; in units of the People's Public Security who are not officers, non-commissioned officers serving under the professional regime, or police workers. These officials are part of the establishment and receive salaries from the state budget.

In addition, Article 43 of the Law on Employment stipulates that workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:

• Labor contracts or working contracts of indefinite time;

• Labor contracts or working contracts of definite time;

• Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.

Officials are not required to participate in unemployment insurance, so when they quit their jobs, officials will not receive unemployment benefits like ordinary workers.

Le Vy

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