Minimum Severance Allowance for Public Employees is Equal to One Month's Salary

The minimum severance pay for public employees is equivalent to 01 month's salary (Illustration)

According to Article 58 of Decree 115/2020/ND-CP, the severance pay for public employees who have worked from December 31, 2008, and earlier is calculated as follows:

- Each working year is calculated as half a month's current salary, including: Professional title-based salary, managerial position allowances, seniority allowances exceeding the frame, professional seniority allowances, and salary retention coefficient (if any);- The minimum allowance is equivalent to 01 month's current salary;- For public employees recruited before July 1, 2003, the working period considered for severance pay is the total working period (accumulated) from the time the public employee receives the recruitment decision to the end of December 31, 2008;- For public employees recruited from July 1, 2003, onwards, the working period considered for severance pay is the total working period according to the employment contract (accumulated) from the time the public employee receives the recruitment decision to the end of December 31, 2008.- For the working period of public employees from January 1, 2009, to present, it is implemented according to the regulations on unemployment allowance.

Additionally, regarding the payment funds for severance allowance, it is specified as follows:

- For public non-business units covering their own recurrent expenditures and investment expenditures, and public service providers self-ensuring recurrent expenditure: The funds for payment of severance allowance are taken from the unit's financial sources, including the period during which the public employee worked at other agencies, organizations, units within the political system.- For public non-business units partially covering their own recurrent costs and public service providers whose recurrent expenditure is ensured by the State budget: The payment funds are derived from the financial resources of the public service provider, including the period during which the public employee worked at other agencies, organizations, units within the political system. If the financial resources of the public service provider are not sufficient to cover the payment for the period the public employee previously worked at other entities within the political system, the State budget will provide support.

Public employees resigning will be entitled to severance pay with recognition of the period during which social insurance contributions were made according to the law.

For further details, refer to Decree 115/2020/ND-CP, effective from September 29, 2020.

Le Vy

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