According to current regulations, employees in Vietnam will be entitled to a pension after having contributed to social insurance for 20 years or more and being 60 years or older for men, and 55 years or older for women. However, in the following cases, employees will be allowed to retire early and receive a reduced pension:
Recently, Lawnet has received numerous inquiries from Customers and Members regarding early retirement in Vietnam, such as cases in which early retirement is permitted, the applicable policies, benefits, and notes on early retirement, etc. Lawnet will provide detailed answers to these issues in the article below.
The Draft Decree on regulations for retirement age and pension eligibility conditions is currently open for public comments online and is expected to take effect from January 01, 2021. In addition to stipulating the roadmap for adjusting the retirement age for employees in ordinary working conditions, this Draft also details the roadmap for amendments to the early retirement from 2021.
According to the provisions of Article 55 of the 2014 Law on Social Insurance, starting from 2020, in cases of reduced working capacity, employees in Vietnam with a minimum of 20 years of Social Insurance contributions may be eligible for retirement benefits if they simultaneously meet the conditions regarding the degree of working capacity reduction and the age requirement according to gender.
On the basis of the Labor Code 2019, the Government of Vietnam promulgated Decree 135/2020/ND-CP regulating retirement age, which will officially take effect from January 01, 2021.
To provide guidance on the regulations adjusting the retirement age for employees under the Labor Code, Hanoi has issued Decree 135/2020/ND-CP, which will officially take effect in Vietnam from January 01, 2021.
On December 10, 2020, the Government issued Decree 143/2020/ND-CP amending and supplementing Decree 108/2014/ND-CPon downsizing.In particular, there are regulations to change the way to calculate the age to enjoy the premature retirement policy when implementing payroll streamlining in accordance with the 2019 Labor Code that has just taken effect. Determining the age to enjoy this early retirement policy has recently been specifically guided by the Ministry of Home Affairs at Official Dispatch 4126/BNV -TCBC.
On November 12, 2020, the Ministry of Labor, War Invalids and Social Affairs issued Circular 11/2020/TT-BLDTBXH promulgating the list of arduous, hazardous and dangerous occupations and works, and extremely arduous, hazardous and dangerous occupations and works in Vietnam.
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