Early Retirement Benefits: 24-Month Salary Payout and Immediate Pension Eligibility for Employees Affected by Organizational Restructuring

Immediate Pension and One-Time Allowance Benefits

The government has issued a Resolution outlining policies and regimes for individuals affected by the reorganization of administrative apparatuses and units at all levels, as per Conclusion No. 183 of the Politburo and the Secretariat.

Effective from September 17, 2025, the Government’s Resolution addresses policies for five groups of employees who are immediately laid off due to the reorganization of administrative apparatuses and the implementation of the two-tier local government model.

Group 1 includes civil servants, public employees, workers, and military personnel who are immediately laid off due to the direct impact of administrative reorganization and the implementation of the two-tier local government model.

These individuals are entitled to immediate pension benefits and a one-time allowance based on their length of service. Those with 15 months or less of service receive a one-time allowance equivalent to 15 months of their current salary.

For those with more than 15 months of service, the allowance is calculated as 15 months of current salary for the first 15 months, plus 0.5 months of current salary for each additional month. The maximum allowance is capped at 24 months of current salary.

Group 2 comprises officials from commune-level positions and above who have reached retirement age or are already receiving pension, disability, or war veteran benefits, and are laid off due to administrative reorganization.

These individuals receive a one-time allowance based on their service duration from the time they reached retirement age or began receiving benefits until their layoff. The allowance is calculated similarly to Group 1, with a maximum cap of 24 months of current salary.

Policies for Contract Workers

Group 3 covers contract workers in public service units.

Those younger than retirement age may opt for early retirement under Article 7 or resignation under Article 10 of Decree No. 178/2024 (amended by Decree No. 67/2025).

Those who have reached retirement age receive the same benefits as Group 1.

Group 4 includes individuals working beyond the staffing quota in associations mandated by the Party and State at provincial or district levels before July 1, 2025.

These individuals receive a one-time allowance determined by local authorities, capped at 24 months of current salary or remuneration. They also retain their social insurance contributions and are eligible for unemployment benefits.

Group 5 covers full-time union officials employed under labor contracts, receiving salaries and allowances from union funds.

Those within 2 years of retirement age receive a one-time pension allowance of 0.8 months of current salary multiplied by the number of months until retirement.

Those within 2 to 5 years of retirement age receive the same allowance, while those within 5 to 10 years receive 0.7 months of current salary for 60 months.

Those ineligible for early retirement receive a one-time severance allowance of 0.6 months of current salary multiplied by the number of months of service. They also receive an additional 1.5 months of current salary for each year of mandatory social insurance contributions, retain their social insurance contributions, and are eligible for unemployment benefits.