Ministry of Home Affairs guides salary policy for early retirement

Document sent to ministries, ministerial-level agencies, government agencies; National Financial Supervision Committee; Hanoi National University; Ho Chi Minh City National University; People's Committees of provinces and centrally run cities.

Accordingly,Home Officegive some opinions on determining the age to enjoy early retirement policy for cases subject to staff streamlining.

Specifically, regarding the subject of streamlining the payroll, there areretirement ageUnder normal working conditions, cases of staff reduction with an age lower than the maximum retirement age of the year of staff reduction and having paid social insurance for 20 years or more, depending on each specific case, are entitled to early retirement policy according to regulations.

Retirement age under normal working conditions is prescribed in Article 4 of Decree No. 135/2020 of the Government:

From January 1, 2021, the retirement age of employees under normal working conditions is 60 years and 3 months for male employees and 55 years and 4 months for female employees.

After that, it will increase by 3 months each year for male workers until reaching 62 years of age in 2028 and by 4 months each year for female workers until reaching 60 years of age in 2035.

The Ministry of Home Affairs cited that a male born in October 1964 has 21 years of social insurance contributions. If the payroll is reduced in August 2021 (with an age of 56 years and 10 months), 3 years and 5 months lower than the retirement age of 2021 (60 years and 3 months as prescribed in Clause 2, Article 4 of Decree No. 135/2020), he will be entitled to early retirement policy.

Or the case of a female born in May 1967, with 20 years of social insurance contributions. If the staffing level is reduced in January 2022 (with an age of 54 years and 8 months), 1 year lower than the retirement age of 2022, she will enjoy the early retirement policy according to regulations.

Cases of staff streamlining with an age lower than the maximum retirement age of the year of staff streamlining and having paid social insurance for 20 years or more, including 15 years of working in arduous, toxic, dangerous or especially arduous, toxic, dangerous jobs on the list issued by the Ministry of Labor - Invalids and Social Affairs or having worked for 15 years in areas with particularly difficult socio-economic conditions, including working time in places with regional allowance coefficient of 0.7 or higher before January 1, 2021, depending on each specific case, are entitled to early retirement policy according to regulations.

The Ministry of Home Affairs cited that a female born in November 1973 has 20 years of social insurance contributions, including 15 years of working in areas with particularly difficult socio-economic conditions as prescribed by law. If the staff reduction in November 2021 (age 48 years) is 2 years and 4 months lower than the retirement age of 2021 (50 years and 4 months prescribed in Clause 2, Article 5 of Decree No. 135/2020), she will be entitled to early retirement policy.

Or in the case of a man born in December 1967, who has paid social insurance for 25 years, of which 16 years were spent doing heavy, toxic, and dangerous work as prescribed by law. If the staff reduction in February 2022 (age 54 years and 2 months) is 1 year and 4 months lower than the retirement age of 2022 (55 years and 6 months according to regulations), he will be entitled to early retirement policy.

For cases that have been resolved by competent authorities for early retirement according to the staff streamlining policy before the issuance of this document, there is no need for reconsideration.

Some early retirement policies are stipulated in Clause 2, Article 1 of Decree No. 143/2020:
- No deduction of pension rate due to early retirement;
- Receive a 3-month salary allowance for each year of early retirement compared to the minimum age prescribed in Clause 3, Article 169 of the Labor Code;
- Subsidized 5 months salary for the first twenty years of work, with full social insurance payment. From the twenty-first year onwards, for each year of work with social insurance payment, subsidized 1/2 month salary.
- Enjoy retirement benefits according to the provisions of the law on social insurance and not have the pension rate deducted due to early retirement.