Guidelines on determining the time and monthly salary for calculating entitlements and policies in Vietnam according to Circular 01/2025

Guidelines on determining the time and monthly salary for calculating entitlements and policies in Vietnam according to Circular 01/2025​ (Image from the Internet)

The Minister of Home Affairs of Vietnam promulgates Circular 1/2025/TT-BNV dated January 17, 2024, guiding the implementation of policies for officials and public employees and employees in the reorganization of the political system structure.

Guidelines on determining the time and monthly salary for calculating entitlements and policies in Vietnam according to Circular 01/2025

Pursuant to Article 3 of Circular 1/2025/TT-BNV, the determination of the time and monthly salary for calculating eligibility for policies in Vietnam is stipulated as follows:

- The time for the decision to reorganize the structure of an authorized level is the effective date of the document issued by authorities of the Communist Party, State, political-socio organizations concerning the organizational structure and administrative unit reorganization.

+ Within 12 months from the specified time, officials and public employees and employees who are granted permission by competent authorities to retire (early retirement or resignation) are eligible for policies according to the provisions of the first 12 months.

+ After the period specified in point a of this section, policies are counted according to the provisions from the 13th month onwards.

- The current monthly salary stipulated in clause 6, Article 5 of Decree 178/2024/ND-CP is calculated for policy eligibility when leaving work, as follows:

+ For individuals receiving salaries based on the salary scale prescribed by the State, the current monthly salary includes: Salary level according to rank, step, position, title, professional title, and salary allowances (including: Leadership position allowance; seniority allowance over the frame; occupational seniority allowance; occupational preferential allowance; occupational responsibility allowance; public service allowance; allowance for party activities, social-political organizations, if any), specifically:

The statutory pay rate for calculating the current monthly salary as mentioned above is the statutory pay rate prescribed by the Government of Vietnam at the time of the month preceding the month of departure.

+ For individuals whose salary is negotiated in the labor contract, the current monthly salary is the monthly salary stated in the labor contract.

- The number of early retirement months is the number of months calculated from the retirement time as decided by the competent authority compared to the retirement age stipulated in Appendix I or Appendix II issued with Decree 135/2020/ND-CP specifying retirement age.

- The number of early retirement years is the number of years calculated from the retirement time as decided by the competent authority compared to the retirement age stipulated in Appendix I or Appendix II issued with Decree 135/2020/ND-CP and is calculated according to the provisions of clause 4, Article 5 of Decree 178/2024/ND-CP.

- The time used to calculate the allowance according to years of service with compulsory social insurance contributions is calculated according to the provisions of clause 3, Article 5 of Decree 178/2024/ND-CP.

Refer to more details in the Circular 1/2025/TT-BNV effective from the date of signing. Policies stipulated in this Circular are calculated from January 01, 2025.

Implementing the provisions of clause 2, Article 24 of Decree 178/2024/ND-CP, those who have received policies stipulated in Decree 29/2023/ND-CP dated June 3, 2023, of the Government of Vietnam on streamlining the organization prior to January 01, 2025, are not eligible for policies stipulated in this Circular.

Agencies, organizations, and units during the process of implementing organizational restructuring, streamlining personnel, restructuring, and enhancing the quality of officials and public employees shall implement the exit policy in a synchronized manner with policies for officials and public employees assigned to grassroots tasks; policies for recruiting individuals with outstanding qualities and capabilities (including amending the regulations on raising the salary grade ahead of time due to significant achievements in task performance of agencies, organizations, units, with the highest priority for individuals evaluated as having outstanding qualities and capabilities to be promoted before schedule) and policies on training and retraining officials and public employees after reorganization.

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