Details of the roadmap to increase the retirement age for employees over the years in Vietnam

Details of the roadmap to increase the retirement age for employees over the years in Vietnam (Illustrative Image)

According to the provisions of Clause 2, Article 169 of the Labor Code 2019, the retirement age of employees under normal working conditions is adjusted according to a roadmap until reaching 62 years old for male employees in 2028 and 60 years old for female employees in 2035. From 2021, the retirement age for employees under normal working conditions will be 60 years and 03 months for male employees and 55 years and 04 months for female employees; subsequently, each year increases by 03 months for male employees and 04 months for female employees in Vietnam.

To specify this regulation, Clause 2, Article 4 of Decree 135/2020/ND-CP stipulates the roadmap for adjusting the retirement age of employees under normal working conditions as follows:

Note: View Appendix I issued together with Decree 135/2020/ND-CP to refer to the month and year of birth of the employees corresponding to the aforementioned retirement age.

In addition, employees can retire at an age lower or higher than the retirement age under normal working conditions. Decree 135/2020/ND-CP also provides detailed guidance on this case as follows:

** Retirement at an age lower than the retirement age under normal working conditions in Vietnam (Clause 3, Article 169 of the Labor Code 2019)

According to Article 5 of Decree 135/2020/ND-CP, employees may retire at an age lower but not more than 05 years compared to the retirement age under normal working conditions if they fall under the following cases:

Case 1: employees with 15 years or more of doing heavy, hazardous, dangerous work or especially heavy, hazardous, dangerous work on the list issued by the Ministry of Labor - Invalids and Social Affairs.

Case 2: employees with 15 years or more working in areas with particularly difficult socio-economic conditions, including the period of working in areas where the regional allowance coefficient is 0.7 or higher before January 01, 2021.

Case 3: employees whose working capacity is reduced by 61% or more.

Case 4: employees with a total time of doing work in Case 1 and working in areas in Case 2 of 15 years or more.

To be specific, the lowest retirement age of employees is implemented according to the table below:

Note: View Appendix II issued together with Decree 135/2020/ND-CP to refer to the month and year of birth of employees in the case of retirement at an age lower than the retirement age under normal working conditions.

** Retirement at an age higher than the retirement age under normal working conditions in Vietnam (Clause 4, Article 169 of the Labor Code 2019)

Article 6 of Decree 135/2020/ND-CP provides that employees may retire at an age higher when agreed with the employer to continue working after the retirement age under normal working conditions.

The termination of labor contracts and the settlement of social insurance benefits for employees retiring at an age higher than the retirement age under normal working conditions shall be carried out according to the provisions of Section 3, Chapter III of the Labor Code and the provisions of the law on social insurance.

The above is the entire guidance in Decree 135/2020/ND-CP of the Government of Vietnam on the roadmap for increasing the retirement age for employees, officially effective from January 01, 2021.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE