Method of calculating benefits under the policy for early retirement in Vietnam according to Circular 01/2025

Method of calculating benefits under the policy for early retirement in Vietnam according to Circular 01/2025 (Image from the Internet)

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

Method of calculating benefits under the policy for early retirement in Vietnam according to Circular 01/2025

Subjects defined in Article 2 of Circular 1/2025/TT-BNV who are eligible and approved by a competent authority to retire early compared to the retirement age stipulated in Appendix I or II issued with Decree 135/2020/ND-CP, will immediately receive a pension as per social insurance regulations without reduction due to early retirement. They will also receive a lump-sum retirement benefit as specified in Clause 1, Article 7 of Decree 178/2024/ND-CP; benefits based on the number of early retirement years and benefits based on the period of social insurance contribution as stipulated in Clause 2, Article 7 of Decree 178/2024/ND-CP. Specifically:

(1) For cases with 2 to 5 years remaining until the retirement age as stipulated in points a and c, Clause 2, Article 7 of Decree 178/2024/ND-CP, the following 3 benefits are provided:

- Lump-sum retirement benefit for early retirement months:

For those retiring within the first 12 months:

For those retiring from the 13th month onwards:

- Benefit for early retirement years: For each year of early retirement (full 12 months), 5 months of the current salary is given.

- Benefit based on the period of compulsory social insurance contribution:

For the first 20 years of compulsory social insurance contribution, 5 months of the current salary is given; for the remaining years (from the 21st year onwards), each year receives a benefit equivalent to 0.5 months of current salary.

(2) For cases with more than 5 to 10 years remaining until the retirement age as stipulated in point b, Clause 2, Article 7 of Decree 178/2024/ND-CP, the following 3 benefits are provided:

- lump-sum retirement benefit for early retirement months:

For those retiring within the first 12 months:

For those retiring from the 13th month onwards:

- Benefit for early retirement years: For each year of early retirement (full 12 months), 4 months of the current salary is given.

- Benefit based on the period of compulsory social insurance contribution:

For the first 20 years of compulsory social insurance contribution, 5 months of the current salary is given; for the remaining years (from the 21st year onwards), each year receives a benefit equivalent to 0.5 months of current salary.

(3) For cases with less than 2 years remaining until the retirement age as stipulated in points d and dd, Clause 2, Article 7 of Decree 178/2024/ND-CP, a lump-sum retirement benefit for early retirement months is provided calculated as the method for those retiring within the first 12 months stipulated in point a, Clause 1, Article 4 of Circular 1/2025/TT-BNV.

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