Retirement leave regime according to Decree 177/2024

Regarding policies for cadres when streamlining the apparatus, the Government has issued Decree No. 177/2024/ND-CP stipulating regimes and policies for cases of non-re-election, reappointment and cadres who resign or retire at will. The Decree takes effect from January 1, 2025.

This Decree stipulates the regime and policies for cases of non-re-election or re-appointment to positions and titles according to the term of the Party Committee, government, Vietnam Fatherland Front and socio-political organizations; and cadres who quit their jobs or retire at their will.

Notably, in Article 4, Decree 177 clearly stipulates the conditions and regime for taking leave from work until reaching retirement age.

Conditions for enjoying retirement leave benefits:Subjects specified in Clause 1, Clause 2, Clause 3, Article 2 of this Decree; have less than 24 months of work remaining until retirement age as prescribed; have a voluntary application to resign from work until reaching retirement age and have been approved by competent authority.

Retirement leave

Decree 177 clearly stipulates that the above subjects will receive the full salary or salary according to the rank, level, position allowance, seniority allowance exceeding the framework, seniority allowance, salary reserve difference, responsibility allowance for members at all levels (if any) until reaching retirement age.

The employee who retires and reaches retirement age and the workplace continues to pay social insurance and health insurance according to the provisions of law.

No salary increase or grade increase will be made during the period of leave of absence pending retirement age. Other benefits such as service allowance, telephone allowance (if any), and other allowances will cease to be enjoyed from the month following the month of the decision to leave of absence pending retirement age. Other benefits and policies (if any) will be implemented according to the internal rules and regulations of the agency, organization, or unit as for retired people.

In case a person who is on leave waiting for retirement age while working is eligible for regular car use, the agency is responsible for arranging a shuttle bus if requested to attend meetings, conferences or go to medical examination and treatment; if unable to arrange, payment will be made according to regulations.

In case after the waiting period for retirement age ends but the number of years of compulsory social insurance contributions is still insufficient to receive pension, the one-time social insurance contribution support for the remaining period (but not more than 30 months) will be provided to the pension and death fund according to the social insurance contribution salary in the month of retirement age to implement the pension regime.