Guidelines on determining the time and monthly salary for calculating benefits when organizing the restructuring of organizational apparatus in Vietnam

Guidelines on determining the time and monthly salary for calculating benefits when organizing the restructuring of organizational apparatus in Vietnam

The determination of the time and monthly salary for calculating benefits concerning officials, public employees, and employees during the restructuring of the political system's organizational apparatus in Vietnam is as follows:

- The timing of the decision for organizational restructuring by the competent authority is the effective time of the document issued by the authority of the Communist Party, the State, or socio-political organizations regarding organizational restructuring and administrative unit arrangement.

+ Within 12 months from the above-specified timing, officials, public employees, and employees who are decided by a competent authority to retire (early retirement or resignation) are entitled to policy benefits according to the provisions of the first 12 months.

+ After the period specified at point a, clause 1, Article 3 of Circular 1/2025/TT-BNV, policy benefits will be calculated according to the regulations from the 13th month onwards.

- The current monthly salary as specified in clause 6, Article 5 of Decree 178/2024/ND-CP for policy calculation upon resignation is as follows:

+ For individuals receiving salaries based on State-prescribed salary scales:

The  current  monthly  salary  includes:  The  salary  level  according  to  rank,  grade,  position,  title,  professional  title,  and  salary  allowances  (including:  leadership  position  allowance;  seniority  allowance  exceeding  the  framework;  professional  seniority  allowance;  professional  preferential  allowance;  professional  responsibility  allowance;  service  allowance;  party  and  socio-political  organization  working  allowance,  if  any). To be specific:

Current  monthly  salary  =  (Salary  coefficient  based  on  rank,  grade,  position,  title,  professional  title  x  Statutory  pay  rate)  +  (Leadership  position  allowance  coefficient  (if  any)  x  Statutory  pay  rate)  +  Amount  of  allowances  calculated  based  on  rank,  grade,  position,  title,  professional  title  salary  (if  any)

The  statutory  pay  rate  to  calculate  the  current  monthly  salary  mentioned  above  is  the  statutory  pay  rate  prescribed  by  the  Government  of  Vietnam  at  the  point  in  time  of  the  month  immediately  preceding  the  month  of  resignation.

+ For individuals receiving a monetary salary as agreed upon in the labor contract, the current monthly salary is the monthly salary stated in the labor contract.

- The number of months of early retirement is the number of months calculated from the time of retirement as decided by a competent authority compared to the retirement age prescribed in Appendix I or Appendix II issued together with Decree 135/2020/ND-CP.

- The number of years of early retirement is the number of years calculated from the time of retirement as decided by a competent authority compared to the retirement age prescribed in Appendix I or Appendix II issued together with Decree 135/2020/ND-CP as calculated according to the provision in clause 4, Article 5 of Decree 178/2024/ND-CP.

- The duration for calculating the allowance based on the number of years of service with mandatory social insurance contributions is calculated according to the provisions in clause 3, Article 5 of Decree 178/2024/ND-CP.

Circular 1/2025/TT-BNV takes effect from January 17, 2025. Policies provided for in Circular 1/2025/TT-BNV are applicable from January 1, 2025.

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