Decree No. 50/2022/ND-CP stipulates retirement at an older age for public employees in public non-business units. Accordingly, every year, based on the development orientation, the human resource situation of the organization and the requirements of the employment position, the public non-business unit shall base itself on the announcement of the policy and the need to extend the working time unit’s work. Refer to the article below of LuatsuX to learn about the most recent cases of extending the retirement age in Vietnam.
Cases in which the retirement age is extended
Decree 50/2022/ND-CP stipulates 4 cases of public employees with high professional and technical qualifications in public non-business units and public employees working in a number of specific non-business fields, including:
Officials with the rank of professor, associate professor;
Officials holding professional titles that require training qualifications are doctoral or specialized II;
Forensic examiners, forensic psychiatrists;
Professional and highly technical public employees in a number of specific non-business fields as prescribed by specialized laws.
Principles of implementing retirement at an older age
The principle of implementing retirement at an older age is to ensure objectivity, fairness, publicity and compliance with regulations. The retirement age for public employees shall not exceed 5 years (60 months), counting from the time the public employee reaches the retirement age according to Decree No. 135/2020/ND-CP of the Government on retirement age. .
During the period of retirement at an older age, public employees only perform professional tasks, do not hold leadership or management positions and are not entitled to reserve allowances for leadership positions.
During the implementation of retirement at an older age, if the public employee wishes to retire from work or the non-business unit no longer needs it, his/her retirement regime shall be settled in accordance with law.
How to extend retirement age?
Public employees who satisfy the prescribed conditions shall submit an application to extend their working time and send them to the competent authorities according to their management decentralization for a decision on extension at least 06 (six) months before the time of retirement.
Competent authorities according to the management decentralization consider and evaluate the conditions of public employees who wish to extend their working time and the policies and needs of public non-business units to consider and decide on their employment. extending the working time, the time being extended for each case of public employees.
The decision to extend the working time of public employees shall be sent to relevant organizations and individuals at least three months before the time of retirement.
Officials holding the title of lecturer of a public higher education institution or an employee holding a scientific or technological title at a public science and technology institution who has been granted a decision on the extension by a competent authority. working time according to current regulations will continue to perform.
Public employees who are entitled to an extension of retirement age enjoy a salary regime according to their current professional titles and other regimes and policies as prescribed.
Retirement benefits
In addition to the pension, employees also receive a lump-sum allowance upon retirement. Regarding the lump-sum allowance upon retirement, Clause 1, Clause 2, Article 58 of the Law on Social Insurance 2014 stipulates that employees who have paid social insurance premiums for a period of time higher than the number of years corresponding to the 75% pension rate, upon retirement, in addition to The pension is also entitled to a lump-sum allowance.
The one-time allowance calculated according to the number of years of payment of social insurance premiums is higher than the number of years corresponding to the pension enjoyment rate of 75%. For each year of payment of social insurance, it is calculated as 0.5 months of the average monthly salary on which social insurance premiums are based.
How to calculate pension when retiring before age?
Pursuant to Clause 2, Article 1 of Decree No. 143/2020/ND-CP and guidance in Official Dispatch No. 4126/BNV-TCBC, in order to receive a monthly pension right after resigning, cadres, civil servants and public employees subject to downsizing must belong to one of the following two groups of subjects:
Group 1: People who fully meet the following conditions:
– Having a maximum age of 5 years lower than the retirement age specified in Clause 2, Article 169 of the Labor Code (retirement age of employees working under normal conditions).
2022: To retire early due to downsizing:
- Female cadres, civil servants and public employees: Must be at least 50 years old and 8 months old.
- Male cadres, civil servants and public employees: Must be from 55 years old and 6 months old.
- Having paid social insurance premiums (social insurance) for full 20 years or more.
Group 2: People who fully meet the following conditions:
– Having a maximum age of 5 years younger than the minimum retirement age specified in Clause 3, Article 169 of the Labor Code (in case of being retired no more than 05 years before the retirement age of employees working in poor conditions). normal).
2022: To retire early due to downsizing:
- Female cadres, civil servants and public employees: Must be at least 45 years old and 8 months old.
- Male cadres, civil servants and public employees: Must be at least 50 years old and 6 months old.
- Having paid social insurance premiums for full 20 years or more, in which one of the following two conditions is added:
- Having full 15 years of working in occupations or jobs that are heavy, toxic, dangerous or particularly heavy, toxic or dangerous.
- Having full 15 years of working in an area with extremely difficult socio-economic conditions, including working time in a place with a regional allowance of 0.7 or more.
Pursuant to Clause 1, Article 2 of the Law on Social Insurance 2014, cadres, civil servants and public employees are determined to be subjects to participate in compulsory social insurance.
Accordingly, the pension benefits of these people will be implemented according to the guidance in Article 7 of Decree 115/2015/ND-CP. Specifically:
Monthly pension = Enjoyment rate x Average monthly salary on which social insurance premiums are based
In there:
- Retirement rate:
For female employees who have paid full 15 years of social insurance, the rate is equal to 45%. Then for each additional year, the benefit rate is calculated by 2%. The maximum benefit rate is 75%.
For male employees, who retire in 2021 and pay full 19 years of social insurance, the benefit rate will be 45%. Retirement from 2022 onwards will pay full 20 years of social insurance, the benefit rate will be calculated at 45%. After that, for every additional year, an additional 2% is charged. The maximum benefit rate is 75%.
Cadres, civil servants and public employees who retire early due to downsizing will not have their pension entitlement rate deducted. While in normal cases, for every year of early retirement, the benefit rate will be reduced by 2%.
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Frequently asked questions
Public employees may retire at an older age if they fully meet the following conditions: public non-business units in need; be in good health; is not in the process of being considered for disciplinary action, being investigated, prosecuted, tried or disciplined about the Party and administration and has an application for extension of working time.
Employees with reduced working capacity; doing particularly heavy, hazardous or dangerous occupations or jobs; doing heavy, hazardous or dangerous occupations or jobs; working in areas with extremely difficult socio-economic conditions may retire at a lower age but not exceeding 05 years of age as prescribed in Clause 2, Article 169 of the Labor Code 2019 at the time of retirement, except unless otherwise provided by law.
Employees with high professional and technical qualifications and in some special cases may retire at an age higher than 5 years old but not exceeding the age of 05 years compared to the provisions in Clause 2, Article 169 of the Labor Code 2019 at the time of their retirement. retirement point, unless otherwise provided for by law.
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