Vietnam: Employees working in highly disadvantaged areas shall be entitled to early retirement from 2021

According to Clause 3 Article 169 of the Labor Code 2019 of Vietnam, the retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than the retirement ages, unless otherwise prescribed by law.

Thus, according to Article 5 of the Decree No. 135/2020/NĐ-CP of Vietnam’s Government, an employee, in any of the following circumstances, may retire at the age earlier but not exceeding 5 years before the statutory retirement age (60 years 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year), determined until the retirement date, unless otherwise prescribed by law:

- He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs;

- He/she has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region-based allowance of at least 0.7 (allowance for those working in disadvantaged areas) before January 01, 2021; (Note: the Minister of Labor, War Invalids and Social Affairs issues the List of highly disadvantaged areas)

- His/her work capacity reduction is at least 61%;

- He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs, including the period he/she works in areas with the region-based allowance of at least 0.7 before January 01, 2021.

Currently, according to Clause 2 Article 187 of the Labor Code 2012 of Vietnam, an employee whose working ability has been declined; who performs a specially heavy, hazardous or dangerous job or a heavy, hazardous or dangerous job; works in a mountain, deep-lying, remote, border or island area in the list issued by the Government may retire before reaching the retirement age in normal working conditions.

Thus, according to the above provisions, from 2021, employee who has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs, (including the period he/she works in areas with the region-based allowance of at least 0.7 before January 01, 2021 for at least 15 years) is entitled to early retirement compared to employees working in normal working conditions. However, the retirement ages of these employees may be younger by up to 05 years than the retirement ages which are 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

The Ministry of Labor, War Invalids and Social Affairs of Vietnam has proposed in the Draft Circular on the List of extremely disadvantaged areas in some districts and communes in 23 provinces in extremely difficult areas by 2021, including: Ha Giang, Cao Bang, Bac Kan, Lao Cai, Dien Bien, Lai Chau, Son La, Yen Bai, Lang Son, Thanh Hoa, Nghe An, Quang Binh, Quang Tri, Thua Thien - Hue, Quang Nam, Kon Tum, Gia Lai, Dak Lak, Dak Nong, Lam Dong, Binh Phuoc, Kien Giang. Details of the list of 23 provinces in extremely disadvantaged areas that employees will be entitled to early retirement. Customers and Members can download here:

DOWNLOAD: Excel file listing 23 provinces in extremely disadvantaged areas that employees will be entitled to early retirement

Ty Na

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