Policy on early retirement for officials in streamlining the apparatus in Vietnam

Policy on early retirement for officials in streamlining the apparatus in Vietnam​ (Image from the Internet)

On December 31, 2024, the Government of Vietnam issued Decree 178/2024/ND-CP regarding policies for officials and public employees, employees, and armed forces in the restructuring of political system organizations.

Policy on early retirement for officials in streamlining the apparatus in Vietnam

Entities outlined in Clause 1, Article 2 of Decree 178/2024/ND-CP who retire early shall benefit from the following policies:

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

- For those retiring within the first 12 months from the effective date of the decision to restructure the organization by the competent authority:

If the age is up to 5 years younger than the retirement age stipulated in Appendix I and Appendix II enclosed with Decree 135/2020/ND-CP, they are entitled to an allowance of one month's current salary multiplied by the number of months retiring early before the retirement age.

If the age is more than 5 years and up to 10 years younger than the retirement age stipulated in Appendix I enclosed with Decree 135/2020/ND-CP, they are entitled to an allowance of 0.9 months' current salary multiplied by 60 months.

- For those retiring from the 13th month onward from the effective date of the decision to restructure the organization by the competent authority, they are entitled to 0.5 times the allowance level at point a, Clause 1, Article 7 of Decree 178/2024/ND-CP.

(2) Entitled to early retirement policies based on the duration of mandatory social insurance contributions and the number of years retiring early as follows:

- If the age is from 2 years to 5 years younger than the retirement age stipulated in Appendix I enclosed with Decree 135/2020/ND-CP and the individual has sufficient years of service with mandatory social insurance contributions to be entitled to a pension according to social insurance laws, in addition to receiving a pension according to social insurance laws, they are also entitled to the following policies:

+ No reduction in the pension rate due to early retirement;

+ Entitlement to an allowance equivalent to 5 months' current salary for each year of early retirement compared to the retirement age stipulated in Appendix I enclosed with Decree 135/2020/ND-CP;

+ Entitlement to an allowance equivalent to 5 months' current salary for the first 20 years of service with mandatory social insurance contributions. From the 21st year onward, for each year of service with mandatory social insurance contributions, an allowance of 0.5 months' current salary is granted.

+ If the age is between 5 years to 10 years younger than the retirement age stipulated in Appendix I enclosed with Decree 135/2020/ND-CP and the individual has sufficient years of mandatory social insurance contributions to be entitled to a pension according to social insurance laws, in addition to receiving a pension according to social insurance laws, they are also entitled to the following policies:

+ No reduction in the pension rate due to early retirement;

+ Entitlement to an allowance equivalent to 4 months' current salary for each year of early retirement compared to the retirement age stipulated in Appendix I enclosed with Decree 135/2020/ND-CP;

+ Entitlement to an allowance equivalent to 5 months' current salary for the first 20 years of service with mandatory social insurance contributions. From the 21st year onward, for each year of service with mandatory social insurance contributions, an allowance of 0.5 months' current salary is granted.

+ If the age is from 2 years to 5 years younger than the retirement age stipulated in Appendix II enclosed with Decree 135/2020/ND-CP and the individual has sufficient years of service with mandatory social insurance contributions to be entitled to a pension according to social insurance laws, with at least 15 years or more engaged in hard, hazardous, dangerous, or especially hard, hazardous, dangerous jobs as listed by the Ministry of Labor, War Invalids and Social Affairs or at least 15 years or more working in areas with extremely difficult socio-economic conditions as listed by the Ministry of Labor, War Invalids and Social Affairs, including time working in regions with a regional allowance coefficient of 0.7 or more before January 1, 2021, in addition to receiving a pension according to social insurance laws, they are entitled to the following policies:

+ No reduction in the pension rate due to early retirement;

+ Entitlement to an allowance equivalent to 5 months' current salary for each year of early retirement compared to the retirement age stipulated in Appendix II enclosed with Decree 135/2020/ND-CP;

+ Entitlement to an allowance equivalent to 5 months' current salary for the first 20 years of service with mandatory social insurance contributions. From the 21st year onward, for each year of service with mandatory social insurance contributions, an allowance of 0.5 months' current salary is granted.

+ If the age is less than 2 years younger than the retirement age stipulated in Appendix I enclosed with Decree 135/2020/ND-CP and the individual has sufficient years of service with mandatory social insurance contributions to be entitled to a pension according to social insurance laws, they are entitled to a pension according to social insurance laws and no reduction in the pension rate due to early retirement.

- If the age is less than 2 years younger than the retirement age stipulated in Appendix II enclosed with Decree 135/2020/ND-CP and the individual has sufficient years of service with mandatory social insurance contributions to be entitled to a pension according to social insurance laws, with at least 15 years or more engaged in hard, hazardous, dangerous, or especially hard, hazardous, dangerous jobs as listed by the Ministry of Labor, War Invalids and Social Affairs or at least 15 years or more working in areas with extremely difficult socio-economic conditions as listed by the Ministry of Labor, War Invalids and Social Affairs, including time working in regions with a regional allowance coefficient of 0.7 or more before January 1, 2021, they are entitled to a pension according to social insurance laws and no reduction in the pension rate due to early retirement.

(3) Officials and public employees entitled to early retirement as mentioned in (1) and (2) who are subject to commendation for their contributions according to the provisions of the Law on Emulation and Commendation and Decree 98/2023/ND-CP but lack the service time in their leadership positions at the time of retirement to be commended for their contributions, the early retirement period will be considered equivalent to the remaining term of the election or the appointment duration of the current position to be considered for commendation according to the provisions of the Law on Emulation and Commendation and Decree 98/2023/ND-CP.

For officials and public employees not subject to commendation for their contributions, competent authorities shall consider appropriate commendation forms for their achievements.

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

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE