To propose additional beneficiaries of early retirement policy in Vietnam

To propose additional beneficiaries of early retirement policy in Vietnam (Internet image)

The Ministry of Home Affairs of Vietnam is collecting comments on the draft Decree to replace Decree 108/2014/ND-CP, Decree 113/2018/ND-CP and Decree 143/2020/ND-CP on downsizing policy .

1. Proposing additional beneficiaries of early retirement policy in Vietnam

In the draft Decree, it was proposed to supplement the policy of early retirement for female cadres and civil servants at commune level subject to downsizing as prescribed in Article 4 of the draft Decree with at least 05 years and at least full 02 years younger than the retirement age specified in Appendix I issued together with Decree 135/2020/ND-CP and have full 15 years to under 20 years of paying social insurance premiums. In addition to enjoying the retirement regime as prescribed by the law on social insurance, they are also entitled to the following regimes:

- No deduction of the pension rate due to early retirement;

- Receiving a subsidy of 03 months' salary for each year of retirement before the retirement age specified in Appendix I issued together with Decree 135/2020/ND-CP;

- Receiving a subsidy of 5 months' salary for the working period with payments from 15 years to less than 20 years of paying social insurance premiums.

2. Proposal on removing 03 subjects from downsizing in Vietnam

According to Article 2 of Decree 108/2014/ND-CP, the subjects of downsizing include:

- Cadres and civil servants from central to commune level;

- Officials in public non-business units;

- Persons working under the regime of labor contracts with an indefinite term specified in Decree 111/2022/ND-CP
on the performance of the contract regime for a number of jobs in state administrative agencies, non-business units, and in accordance with other provisions of law.

- Company presidents, members of the Members' Council, General Director, Deputy General Directors, directors, deputy general directors, chief accountants, and controllers in state-owned, one-member limited liability companies or owned by a political organization or socio-political organization (excluding the General Director, Deputy General Director, Chief Accountant working under the labor contract regime).

- Persons who are cadres and civil servants who are appointed by competent agencies to act as authorized representatives for the state capital portion in state-owned enterprises.

- People working on the payroll assigned by competent state agencies at associations.

In the draft Decree of the Ministry of Home Affairs, it is proposed to remove 3 subjects of downsizing the staff as follows:

- Contract labor;

- Company presidents, members of the Members' Council, general director, deputy general director, director, deputy director, chief accountant, controller in state-owned one-member limited liability companies or owned by a political organization or socio-political organization (excluding the general director, deputy general director, chief accountant working under the labor contract regime);

- People working on the payroll assigned by competent state agencies at associations.

3. Cases that have not been considered for downsizing under the new proposal in Vietnam

According to Article 5 of the Draft Decree, cases where staff reduction has not been considered include:

- Persons who are in illness, certified by a competent health agency, except for individuals who voluntarily downsize their payroll.

- Cadres, civil servants, and public employees who are pregnant, on maternity leave, or raising children under 36 months old, except for the case of individuals voluntarily downsizing their payroll.

- Those who are in the process of disciplinary review or criminal prosecution.

More details can be found in Draft Decree on downsizing.

Vo Van Hieu

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