Regulation on early retirement for officials retiring at their own request in Vietnam from January 1, 2025

Regulation on early retirement for officials retiring at their own request in Vietnam from January 1, 2025 (Image from the Internet)

Conditions for enjoying early retirement policies from January 1, 2025 in Vietnam

According to Clause 1 of Article 3, Decree 177/2024/ND-CP, the conditions for enjoying early retirement policies in Vietnam are stipulated as follows:

- The subjects stipulated in Clause 1, Clause 2, Clause 3 Article 2 of Decree 177/2024/ND-CP do not meet the conditions for re-election or re-appointment age according to regulations of competent authority or still have enough age for re-election or re-appointment but fall into the cases stipulated in Clause 4 Article 2 or belong to the subjects stipulated in Clause 5 Article 2 of Decree 177/2024/ND-CP;

- By the retirement date, they must have sufficient working time with mandatory social insurance contribution (including the period of apprenticeship, probation) to enjoy pension according to social insurance laws at the time of enjoying the policies.

The retirement age is determined according to the labor law in force at the time of resignation or retirement;

- Have a voluntary application for early retirement and receive approval from the competent authority.

Early retirement policies for officials retiring upon request in Vietnam

Clause 2 of Article 3, Decree 177/2024/ND-CP stipulates early retirement policies for officials retiring upon request as follows:

- To receive pension, other policies as stipulated by social insurance laws and not to be subject to a percentage reduction in pension due to early retirement for a period of up to 5 years (60 months).

- To receive a 5-month salary allowance for each year of early retirement at the time of retirement.

- To receive a 5-month salary allowance for the first 20 years of work with mandatory social insurance contribution; from the 21st year onward, for each year of work with mandatory social insurance contribution, to receive an allowance of 0.5 months of the current salary.

In case of having 15 years of work or more with mandatory social insurance contribution and being eligible for pension as per social insurance laws at the time of resignation or retirement, to receive a 5-month salary allowance for the first 15 years of work; from the 16th year onward, for each year of work with mandatory social insurance contribution, to receive an allowance of 0.5 months of the current salary.

- For cases with positional salary, if positioned at level 1 of the current role for 48 months or more, they will be positioned to level 2 of the current role for retirement.

- For cases with professional and operational salary enjoying a leadership position allowance, if not positioned at the final salary step of the current grade and still need from 1 to 12 months to be regularly raised a salary step as per regulations, they will be promoted to a salary step ahead of time.

- To be able to combine the early retirement period with the working period for consideration of award for contribution if belonging to subjects eligible for contribution award according to the laws on emulation and reward.

- To be considered for military rank or salary step elevation according to the laws.

- For commune-level officials working in areas with particularly difficult socio-economic conditions (including periods of work in places with a regional allowance coefficient of 0.7 or higher before January 1, 2021) according to the laws; commune-level officials with military, police service and awarded medals, badges, and needing less than 2.5 years (30 months) of mandatory social insurance contribution to reach the requisite number of years for pension policy enjoyment, to be assisted with a one-time social insurance payment for the lacking period to enact pension.

For periods exceeding 30 months, a one-time voluntary social insurance payment for the excess period; the payment method, amount, benefit level, and other related matters are conducted according to the social insurance laws.

- Not to be subject to a percentage reduction in pension due to early retirement for excess years over 5 years (if any) if a one-time voluntary social insurance payment for the excess time is made; the payment method, amount, benefit level, and other related matters are conducted according to the social insurance laws.

- To preserve the social insurance contribution period and receive a one-time allowance for each year of work with mandatory social insurance contribution, calculated as 0.5 months of current salary.

- To receive a one-time social insurance benefit according to social insurance laws.

More details can be found in Decree 177/2024/ND-CP which takes effect from January 1, 2025.

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