What are the policies on early retirement due to downsizing?

What are the policies on early retirement due to downsizing? (Internet image) 

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

1. What are the policies on early retirement due to downsizing?

Pursuant to the provisions of Article 5 of Decree 29/2023/ND-CP, the policies on early retirement due to downsizing is as follows:

- Displaced employees who are 2 to 5 years younger than the statutory retirement age as prescribed in Appendix II issued together with Decree 135/2020/ND-CP and have paid social insurance premiums for at least 20 years, and have worked in heavy, dangerous or hazardous industries on the list released by the Ministry of Labor, War Invalids and Social Affairs for full 15 years; or have worked for in severely disadvantaged areas for at least 15 years, on the list released by the Ministry of Labor, War Invalids and Social Affairs, including the working time in areas with region-based allowances of at least 0.7 before January 1, 2021, may benefit from the following welfares, besides pension policies under laws on social insurance:

+ Do not have pensions deducted because of early retirement;

+ Receive 03-month average salary for each early retirement year compared to the statutory retirement age stated in Appendix II issued together with Decree 135/2020/ND-CP;

+ Receive 05-month average salary for the first 20 working years with full payment of compulsory social insurance premiums. From the 21st working years onwards, each working year with social insurance premiums paid shall be granted a half of 01-month salary.

- Displaced employees who are 2 to 5 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree 135/2020/ND-CP, and have paid at least 20 years of compulsory social insurance premiums, may receive pensions as prescribed in Article 54 of the Law on Social Insurance 2014 (amended in 2019), and receive the following welfares:

+ Receive 03-month average salary for each early retirement year compared to the statutory retirement age stated in Appendix II issued together with Decree 135/2020/ND-CP;

+ Receive the welfares as prescribed in point a, point c clause 1 of Article 5 of Decree 29/2023/ND-CP.

- Displaced employees who are at least 2 years younger than the statutory retirement age as prescribed in Appendix II issued together with Decree 135/2020/ND-CP, and have worked in heavy, dangerous or hazardous industries on the list released by the Ministry of Labor, War Invalids and Social Affairs for full 15 years; or have worked for in severely disadvantaged areas for at least 15 years, on the list released by the Ministry of Labor, War Invalids and Social Affairs, including the working time in areas with region-based allowances of at least 0.7 before January 1, 2021, shall benefit from pension policies under laws on social insurance and do not have pensions deducted because of early retirement.

- Displaced employees who are at least 2 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree 135/2020/ND-CP, and have paid at least 20 years of compulsory social insurance premiums (or have paid at least 20 years of compulsory social insurance premiums as for female officials of communes) shall benefit from pension policies under laws on social insurance and do not have pensions deducted because of early retirement.

- Displaced employees who are female officials of communes and 2 to 5 years younger than the statutory retirement age as prescribed in Appendix I issued together with Decree 135/2020/ND-CP, and have paid full 15 years to under 20 years of compulsory social insurance premiums, may benefit from the following welfares, besides pension policies under laws on social insurance:

+ Do not have pensions deducted because of early retirement;

+ Receive 05-month average salary and welfares specified in point a clause 2 of this Article.

2. Rules for downsizing in Vietnam

According to Article 3 of Decree 29/2023/ND-CP, rules for downsizing in Vietnam are as follows:

- Ensure the administration of the Communist Party and the management of the State; uphold the supervisory role of socio-political organizations and citizens during the downsizing.

- Downsizing and reorganizing the organizational apparatus should be linked to improve the efficiency and effectiveness of organizations, as well as to improve the quality of officials and public employees according to their positions, while maintaining the autonomy of organizations.

- Commit that the downsizing is conducted democratically, objectively, openly, and transparently and in accordance with applicable laws.

- Sufficiently and promptly settle all severance packages to displaced employees under applicable laws, effectively use the State budget.

- The Heads of organizations shall be responsible for the downsizing within their jurisdiction.

- If displaced employees are elected or re-recruited to organizations on State payrolls within 60 months after the date of downsizing, they must refund the severance packages they received before.

Nguyen Ngoc Que Anh

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