Regulations to Note on Calculating Early Retirement Allowance

Salary Calculation for Benefits

The monthly salary stipulated in this Decree includes: Salary based on rank, grade, job title, or salary scale; position allowance, seniority allowance exceeding the scale, professional seniority allowance (if any), and the preserved differential (if any) as per the law.

In detail:

- The monthly salary for benefit calculation according to Article 8; Point b Clause 1 Article 9; Point b Clause 1, Point d Clause 2 Article 10 of Decree 108/2014/ND-CP is the average actual monthly salary of the last 5 years (60 months) before downsizing;- For cases with less than 5 years (less than 60 months) of service, the average actual monthly salary of the entire working period is taken.

Time for Benefit Calculation

This is the working time in the agencies of the Communist Party, the State, political-social organizations, public service providers, state-owned enterprises, and organizations eligible for social insurance calculation and compulsory social insurance contributions (according to each person's social insurance book), but have not yet received severance allowance or one-time social insurance benefits, or have not yet received demobilization, discharge policies.

Illustrative image (source: internet)

Time to Apply for Early Retirement Policy Calculation

The time starts from the first day of the month immediately following the birth month of the subject; if the subject's dossier does not specify the day or month of birth, the date is taken as January 01 of the subject's birth year.

If the benefit calculation period has odd months, it is rounded according to the principle: less than 3 months is not counted; from 3 months to less than 6 months is counted as 1/2 year; from more than 6 months to less than 12 months is rounded to 1 year.

Handling Cases of Improper Downsizing

In cases where downsizing is carried out improperly as per the law, the individual who received the downsizing policy and their direct managing agency, organization, or unit hold the following responsibilities:

- The individual who received the downsizing policy must return the amount received under the downsizing policies as per regulation. If the individual has passed away during the period of receiving social insurance benefits, repayment is not required; this amount shall be covered by the frequent expenditure of the direct managing agency, organization, or unit, without additional state budget funds;- The direct managing agency, organization, or unit must notify the social insurance agency to stop paying social insurance benefits to the affected individual who was downsized improperly; transfer the paid amount to the social insurance agency for the affected individual during the period of receiving social insurance benefits (pension, social insurance allowance, health insurance card purchase funds); pay the affected individual the differential between the policy they are entitled to under the law on officials and public employees and the policy received under social insurance law; settle relevant policies for officials and public employees as stipulated; and be responsible for recovering the granted downsizing policy funds from officials and public employees.

The above contents are based on the provisions of Decree 113/2018/ND-CP and Decree 108/2014/ND-CP.

- Duy Thinh -

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