Vietnam: Working duration used for job discontinuation allowance calculation for officials

How are Vietnam’s regulations on the working duration used for job discontinuation allowance calculation for officials? This is a question that LawNet has recently received quite a lot from Customers and Members. LawNet would like to answer this question as follows:

According to current regulations of Decree No. 46/2010/NĐ-CP of Vietnam’s Government, officials who discontinue their jobs will be entitled to a job discontinuation allowance as follows: For every working year, the allowance is equal lo 1/2 (half) of their respective current monthly wages, including the wages paid according to salary ranks and grades, position allowance, extra-seniority allowance, professional seniority allowance and wage reservation difference coefficient (if any). The lowest allowance level is equal to their current I (one) month's wage.

The working duration used for job discontinuation allowance calculation is the total number of years of social insurance payment or the cumulated number if such working duration is interrupted for which job discontinuation or demobilization allowance has not yet been paid, including:

- The duration of working in agencies, organizations or units of the Communist Party of Vietnam, the State or socio-political organization;

- The duration of working in the People's Army and/or the People's Public Security;

- The duration of working in state companies under the Law on Enterprises of Vietnam;

- The duration of working under payroll quotas assigned by competent agencies to socio-politico-professional organizations, social organizations or socio-professional organizations;

- The duration of training or retraining they attended under decisions of their respective agencies, organizations or units;

- The duration of paid leaves under the labor law;

- The duration of sickness, maternity, labor accident, occupational disease, health restoration and rehabilitation leaves as prescribed by the law on social insurance;

- The duration during which they were disciplined or examined for penal liability, which was concluded as unjust and wrong by competent agencies or organizations;

- The duration of suspension from working under Article 81 of the Law on Officials of Vietnam;

- The duration of working under suspended sentences or non-custody reform judgments or rulings of courts.

Notably, if having odd months, the working duration will be calculated as follows:

- Under 3 (three) months will not be counted;

- Between full 3 (three) months and full 6 (six) months will be counted as equal to 1/2 (half) of a working year;

- Between over 6 (six) months and 12 (twelve) months will be counted as equal to 1 (one) working year.

Nguyen Trinh

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