Vietnam: 03 subjects of downsizing are not entitled to support when they move to another place to work

Specifically, according to Clause 3 Article 1 of the Decree No. 143/2020/NĐ-CP of Vietnam’s Government, the policy of transferring to work at organizations without regular salary from the state budget is not applicable to those who are downsized as follows:

(1) Those who have worked at a public non-business unit when the unit is converted to a public non-business unit shall self-finance recurrent expenditures or a public non-business unit shall self-finance recurrent and investment expenditures or the enterprise or equitization is still kept working;

(2) Being subject to downsizing whose age is full 3 years lower than the minimum retirement age specified in Clause 3 Article 169 of the Labor Code 2019 of Vietnam (full 55 years 03 months for males and 50 years 04 months for females) and having full 20 years of paying social insurance premiums or more, of which:

- Having full 15 years of working in heavy, hazardous or dangerous occupations or jobs or particularly heavy, hazardous or dangerous jobs on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health of Vietnam;

- Or having full 15 years of working in an area with extremely difficult socio-economic conditions, including working time in a place with a regional allowance coefficient of 0.7 or more;

(3) Being subject to downsizing whose age is full 3 years lower than the retirement age specified in Clause 2 Article 169 of the Labor Code 2019 of Vietnam (full 60 years 03 months for males and 55 years 04 months for females) and having full 20 years of paying social insurance premiums or more.

Thus, the above are 03 subjects who will not be transferred by the policy to work at organizations without regular salary from the state budget when they are subject to downsizing. Concurrently, the period of enjoying the regime and policy of downsizing the payroll will be extended until the end of December 31, 2030 instead of the end of December 31, 2021.

View more details at the Decree No. 143/2020/NĐ-CP of Vietnam’s Government, effective from December 10, 2020.

Ty Na

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