Methods for determining time and salary for policy benefits when streamlining the organizational structure for officials in Vietnam

Methods for determining time and salary for policy benefits when streamlining the organizational structure for officials in Vietnam​ (Image from the Internet)

On December 31, 2024, the Government of Vietnam promulgated Decree 178/2024/ND-CP concerning policies for officials, public employees, employees, and armed forces in restructuring the political system's organization.

Methods for determining time and salary for policy benefits when streamlining the organizational structure for officials in Vietnam

According to Article 5 of Decree 178/2024/ND-CP, the method for determining time and salary for calculating benefits for officials, public employees, employees, and armed forces in organizing the political system is as follows:

- The time for early retirement to calculate the number of months of retirement benefits is the period from the retirement date stated in the retirement decision to the retirement age specified in Appendix I and Appendix II of Decree 135/2020/ND-CP, with a maximum of 5 years (60 months).

- The period for calculating severance allowance is the working time with mandatory social insurance contributions in the organizations of the Communist Party, the State, socio-political organizations, and armed forces as specified in Article 1 of Decree 178/2024/ND-CP:

+ In cases where the working time with mandatory social insurance contributions is 5 years or more, the maximum period for severance allowance calculation is 5 years (60 months).

+ In cases where the working time with mandatory social insurance contributions is less than 5 years, the period for severance allowance calculation equals the working time with mandatory social insurance contributions.

- The period for calculating the allowance based on years of service with social insurance contributions as stipulated in point a, point b, and point c of Clause 2 Article 7, Clause 2 Article 9, and Clause 2 Article 10 of Decree 178/2024/ND-CP is the total working time with mandatory social insurance contributions (according to each person's social insurance book) but not yet receiving severance, job loss allowance, or social insurance benefits, or demobilization, discharge policies. If the total period for allowance calculation has an odd month, it is rounded according to the principle: from 01 month to 06 months is 0.5 years; from over 06 months to less than 12 months rounds to 01 year.

- The period for calculating the allowance based on pre-retirement years as prescribed in point a, point b, and point c of Clause 2 Article 7 of Decree 178/2024/ND-CP, if there are odd months, it is rounded according to the principle: from 01 month to 06 months is 0.5 years; from over 06 months to less than 12 months rounds to 01 year.

- The reference date to determine the age for policy benefits is the 01st day of the month following the birth month; if the birth date and month are not specified in the records, January 01 of the birth year is used.

- The current monthly salary is the salary of the month immediately preceding the month of job termination, including the salary according to rank, grade, rank of military rank, position, title, professional title, or the salary level as agreed in the labor contract and salary allowances (including: leadership position allowance; seniority allowance beyond the salary scale; professional seniority allowance; professional preferential allowance; professional responsibility allowance; public service allowance; allowance for political, social, and mass organizations work; specific allowances for the armed forces).

For more details, refer to Decree 178/2024/ND-CP effective from January 01, 2025.

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