Increase the age to enjoy the policy of immediate severance for downsized officials and public employees in vietnam

10:25, 25/12/2020

From December 10, 2020, when the Decree No. 143/2020/NĐ-CP officially takes effect, the age eligible for policy of payroll downsizing is increased for downsized officials and public employees in Vietnam. In particular, increasing the age to enjoy the policy of immediate severance for these entities.

tinh giản biên chế, Nghị định 143/2020/NĐ-CP

Specifically, according to Clause 4 Article 1 of the Decree No. 143/2020/NĐ-CP of Vietnam’s Government, persons subject to downsizing as prescribed in Article 6 will enjoy the policy of severance as soon as:

- Having the maximum age 2 years lower than the minimum retirement age specified in Clause 3 Article 169 of the Labor Code 2019 of Vietnam (60 years 03 months for males and 55 years 04 months for females) and are not eligible for early retirement;

- Or are 2 years lower than the retirement age Clause 2 Article 169 of the Labor Code 2019 of Vietnam (60 years 03 months for males and 55 years 04 months for females) and are not eligible for early retirement.

Accordingly, if the above subjects quit immediately, they will be entitled to the following allowances:

- Receive a subsidy of 03 months of current salary to find a job;

- Receive a 1.5-month salary allowance for each working year with social insurance contributions.

In comparison with previous regulation, according to Article 10 of the Decree No. 108/2014/NĐ-CP of the Government of Vietnam, if employees are under 53 years (for men) or under 48 years old (for women) and ineligible for early retirement or under 58 years (for men) or under 53 years old (for women) and ineligible for early retirement voluntarily resign, they shall be eligible for immediate resignation.

Thus, it can be seen that the Decree No. 143/2020/NĐ-CP of Vietnam’s Government has increased the age for officials and public employees subject to downsizing in order to enjoy the policy of severance immediately compared to previous regulation. Concurrently, the period of enjoying the regime and policy of downsizing the payroll will be extended until the end of December 31, 2030 instead of the end of December 31, 2021.

View more details at the Decree No. 143/2020/NĐ-CP of Vietnam’s Government, effective from December 10, 2020.

Ty Na

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