Determination of working duration used for job discontinuation allowance calculation in Vietnam

Determination of working duration used for job discontinuation allowance calculation in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Who are civil servants?

According to Clause 2, Article 4 of the Law on Cadres and Civil Servants 2008 (amended in 2019), civil servants are Vietnamese citizens who are recruited and appointed to ranks, posts or titles in agencies of the Communist Party of Vietnam, the State, socio-political organizations at the central, provincial and district levels;

In People’s Army agencies and units, other than officers, professional military personnel and defense workers; in People’s Police offices and units other than officers and professional non-commissioned officers serving under the professional regime, public security workers, on the payroll and receiving salaries from the state budget.

2. Latest regulations on job discontinuation allowance for civil servants in Vietnam

Job discontinuation allowance for civil servants according to Article 5 of Decree 46/2010/ND-CP is as follows:

Civil servants 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.

3. Funding sources for payment of job discontinuation allowances in Vietnam

Funding sources for payment of job discontinuation allowances according to Article 7 of Decree 46/2010/ND-CP are as follows:

- For civil servants working in agencies of the Communist Party of Vietnam, the State, socio polical organizations at central level, in provinces, centrally run cities, rural districts, urban districts, towns or provincial cities:

In agencies or units of the People's Army or the People's Public Security, funding sources for job discontinuation allowance payment will be included in estimates of expenditures for regular operation, assigned annually by competent bodies.

- For civil servants within leadership or managerial apparatuses of public non-business units, funding sources for job discontinuation allowance payment will be as follows:

+ For public non-business units having their regular operation expenditures fully or partially covered by state budget funds, funding sources for job discontinuation allowance payment will be channeled from respective regular operation funds assigned annually by competent authorities and from their non-business operation revenues under law;

+ For public non-business fully financing their regular expenditures, funding sources for job discontinuation allowance payment will come from their non-business operation revenues under law.

4. Working duration used for job discontinuation allowance calculation in Vietnam

Working duration used for job discontinuation allowance calculation according to Article 6 of Decree 46/2010/ND-CP as follows:

(1) 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 organizations:

- 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 Enterprise Law:

- 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 Cadres and Civil Servants:

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

(2) The working duration defined in (1), if having odd months, 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.

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