Regulations on resignation policies in Vietnam

Regulations on resignation policies in Vietnam (Internet image)

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

1. Resignation policies in Vietnam

According to Article 7 of Decree 29/2023/ND-CP stipulating the policy of severance due to downsizing of staff as follows:

- Immediate resignation:

Displaced employees who are at least 2 years younger than the statutory retirement age as prescribed in Appendix I and II issued together with Decree 135/2020/ND-CP and ineligible for early resignation prescribed in Clause 2, Article 8 of Decree 29/2023/ND-CP, they shall receive the following allowances when they apply for immediate resignation:

+ The current 3 month's salary for job search purpose;

+ 1/5-month salary for each working year with full payment of compulsory social insurance premiums.

- Resignation after vocational training

Employees specified in Article hereof who are under 45 years old, disciplined, healthy, responsible and take charge of positions irrelevant to their qualifications wishing to resign their jobs, they are provided vocational training and receive the following allowances:

+ The full current monthly salary and still be paid social insurance, health insurance, and unemployment insurance premiums (if eligible for payment of unemployment insurance premiums) during the vocational training for maximum 06 months;

+ An allowance equal to 06-month salary;

+ 03 month salary after finishing their vocational training courses;

+ A half of monthly salary for the each working years with full social insurance premiums;

+ The vocation training duration is recognized as working period but it is not included in the seniority for annual advancement between steps.

- Employees specified in clauses 1 and 2 of Article 7 of Decree 29/2023/ND-CP have their duration of social insurance premium payment reserved and receive their social insurance benefits in once under laws on social insurance; and do not benefit from resignation policies for officials and public employees dated April 12, 2012 of the Government.

Thus, people who quit their jobs due to downsizing are entitled to reserve the time to pay social insurance premiums and issue a social insurance book or receive a lump-sum social insurance allowance as prescribed by law.

2. Average monthly salary on which social insurance premiums are based for calculation of pension and lump-sum allowance

- For employees subject to the State-prescribed salary benefits and having the entire period of social insurance premium payment under this salary benefits, the average monthly salary for the number of years of social insurance premium payment before retirement must be:

+ The average monthly salary on which social insurance premiums are based in the last 5 years prior to retirement, for employees paying social insurance premiums before January 1, 1995;

+ The average monthly salary on which social insurance premiums are based in the last 6 years prior to retirement, for employees paying social insurance premiums between January 1, 1995, and December 31, 2000;

+ The average monthly salary on which social insurance premiums are based in the last 8 years prior to retirement, for employees paying social insurance premiums between January 1, 2001, and December 31, 2006;

+ The average monthly salary on which social insurance premiums are based in the last 10 years prior to retirement, for employees paying social insurance premiums between January 1, 2007, and December 31, 2015;

+ The average monthly salary on which social insurance premiums are based in the last 15 years prior to retirement, for employees paying social insurance premiums between January 1, 2016, and December 31, 2019;

+ The average monthly salary on which social insurance premiums are based in the last 20 years prior to retirement, for employees paying social insurance premiums between January 1, 2020, and December 31, 2024;

+ The average monthly salary on which social insurance premiums are based in the entire period of social insurance premium payment, for employees paying social insurance premiums since January 1, 2025.

- For employees who have the entire period of social insurance premium payment under the employer-decided salary benefits, the average monthly salary on which social insurance premiums are based in the entire period of payment shall be used.

- For employees who have both a period of social insurance premium payment under the State-prescribed salary benefits and a period of social insurance premium payment under the employer-decided salary benefits,

The average monthly salary on which social insurance premiums are based in these periods shall be used, in which for the period of social insurance premium payment under the State-prescribed salary benefits, the average monthly salary on which social insurance premiums are based as specified in Clause 1 of Article 62 of Law on Social Insurance 2014 shall be used.

(Article 62 of Law on Social Insurance 2014)

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE