Policy for early retirement under Decree 178/2024 in Vietnam

Policy for early retirement under Decree 178/2024 in Vietnam​ (Image from the internet)

Policy for early retirement under Decree 178/2024 in Vietnam

Subjects stipulated in Clause 1, Article 2 of Decree 178/2024/ND-CP who retire before the prescribed age are entitled to the following policies:

(1) Entitlement to a lump-sum pension allowance for early retirement:

- For individuals retiring within the first 12 months from the date of issuance of the organizational restructuring decision by the competent authority:

In cases where the age is five years or less from the retirement age as prescribed in Appendix I and Appendix II issued together with Decree 135/2020/ND-CP, an allowance equivalent to one month's current salary multiplied by the number of early months compared to the retirement time shall be provided.

In cases where the age is more than five years up to ten years from the retirement age as prescribed in Appendix I issued together with Decree 135/2020/ND-CP, an allowance equivalent to 0.9 times the current monthly salary multiplied by 60 months shall be provided.

- For individuals retiring from the 13th month onwards from the date of issuance of the organizational restructuring decision by the competent authority, an allowance equal to 0.5 times the allowance mentioned in Point a, Clause 1 of this Article shall be provided.

(2) Entitlement to early retirement policies based on work time with mandatory social insurance contributions and early retirement years as follows:

- In case of an age between two to five years from the retirement age as prescribed in Appendix I issued together with Decree 135/2020/ND-CP and having sufficient work time with mandatory social insurance contributions to receive a pension according to social insurance laws, in addition to receiving a pension as per social insurance laws, the following policies shall apply:

Not subject to a reduction in pension rate for early retirement.

Entitled to an allowance equal to five months of current salary for each year of early retirement compared to the retirement age specified in Appendix I issued together with Decree 135/2020/ND-CP.

Entitled to an allowance equal to five months of current salary for the first 20 years of work with mandatory social insurance contributions. From the 21st year onwards, for each year of work with mandatory social insurance contributions, an allowance equivalent to 0.5 months of current salary shall be provided.

- In case of age being over five years to ten years from the retirement age as prescribed in Appendix I issued together with Decree 135/2020/ND-CP and having sufficient mandatory social insurance contributions to receive a pension as per social insurance laws, in addition to receiving a pension as per social insurance laws, the following policies shall apply:

Not subject to a reduction in pension rate for early retirement.

Entitled to an allowance equal to four months of current salary for each year of early retirement compared to the retirement age specified in Appendix I issued together with Decree 135/2020/ND-CP.

Entitled to an allowance equal to five months of current salary for the first 20 years of work with mandatory social insurance contributions. From the 21st year onwards, for each year of work with mandatory social insurance contributions, an allowance equivalent to 0.5 months of current salary shall be provided.

- In the case where the age is two to five years from the retirement age as prescribed in Appendix II issued together with Decree 135/2020/ND-CP and having sufficient work time with mandatory social insurance contributions to be entitled to a pension as per social insurance laws, including sufficient 15 years or more of working in heavy, hazardous, dangerous, or particularly heavy, hazardous, dangerous jobs listed by the Ministry of Labor, War Invalids, and Social Affairs, or having sufficient 15 years or more of working in areas with particularly difficult socio-economic conditions as issued by the Ministry of Labor, War Invalids, and Social Affairs, including working time in areas with a regional allowance coefficient of 0.7 or higher before January 1, 2021, in addition to receiving a pension as per social insurance laws, the following policies shall apply:

Not subject to a reduction in pension rate for early retirement.

Entitled to an allowance equal to five months of current salary for each year of early retirement compared to the retirement age specified in Appendix II issued together with Decree 135/2020/ND-CP.

Entitled to an allowance equal to five months of current salary for the first 20 years of work with mandatory social insurance contributions. From the 21st year onwards, for each year of work with mandatory social insurance contributions, an allowance equivalent to 0.5 months of current salary shall be provided.

- In cases where the age is less than two years from the retirement age as specified in Appendix I issued together with Decree 135/2020/ND-CP and having sufficient work time with mandatory social insurance contributions to be entitled to a pension, the pension shall be paid as per social insurance laws and not subject to a reduction in pension rate for early retirement.

- In cases where the age is less than two years from the retirement age as specified in Appendix II issued together with Decree 135/2020/ND-CP and having sufficient work time with mandatory social insurance contributions, including sufficient 15 years or more of working in heavy, hazardous, dangerous, or particularly heavy, hazardous, dangerous jobs listed by the Ministry of Labor, War Invalids, and Social Affairs, or having sufficient 15 years or more of working in areas with particularly difficult socio-economic conditions or areas with a regional allowance coefficient of 0.7 or higher before January 1, 2021, the pension shall be paid as per social insurance laws and not subject to a reduction in pension rate for early retirement.

(3) Officials and public employees who retire early as stipulated in Clauses 1 and 2 of this Article and are eligible for commendation for service according to the Law on Emulation and Commendation and Decree 98/2023/ND-CP dated December 31, 2023, by the Government of Vietnam detailing the implementation of certain provisions of the Law on Emulation and Commendation, but lack service time to hold leadership positions at the time of retirement to be eligible for commendation for service contributions, are entitled to early retirement corresponding to the remaining term of election or appointment of the current position to consider commendation for service contributions according to the provisions of the Law on Emulation and Commendation and Decree 98/2023/ND-CP. For officials and public employees not eligible for service commendation, competent authorities will consider appropriate forms of commendation based on achievements.

(Article 7 of Decree 178/2024/ND-CP)

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