Mr. Ho Tan T. (Hanoi) was born in 1970, is a civil servant, and has paid social insurance since May 2000. Currently, his salary coefficient is 5.08, responsibility allowance is 0.2.

According to the State's policy of streamlining the administrative apparatus, Mr. T. wishes to retire early.

Mr. T. wants to know how much early retirement allowance he will receive according to Decree 178/2024, when he will receive his pension and the expected pension level.

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Illustration: Thach Thao

Regarding Mr. T.'s concerns, the Ministry of Home Affairs said that to enjoy the early retirement policy, he must be subject to the provisions of Article 2 of Decree 178/2024:

Cadres, civil servants, public employees, and people working under labor contracts in agencies, organizations, units, and armed forces due to the reorganization of administrative apparatus and units at all levels (hereinafter referred to as the reorganization of apparatus) prescribed in Article 1 of this Decree, including:

Cadres, civil servants, leaders, managers and civil servants;

Commune-level officials and civil servants;

People working under labor contracts according to the provisions of labor law before January 15, 2019 and people working under labor contracts are subject to policies like civil servants (hereinafter referred to as employees);

Officers, professional soldiers, workers and defense officials of the Vietnam People's Army;

Officers, non-commissioned officers receiving salaries, police workers and contract workers receiving salaries from the state budget of the People's Public Security;

People working in key organizations.

Cadres who do not meet the age requirements for re-election or re-appointment to hold positions and titles according to their terms in agencies of the Communist Party of Vietnam, the State, socio-political organizations, and cadres who resign at will shall comply with the provisions of other decrees of the Government.

Regarding the calculation of early retirement benefits according to Decree 178/2024, the Ministry of Home Affairs has issued Circular No. 01/2025 guiding the implementation of policies and regimes for cadres, civil servants, public employees and workers in the implementation of organizational restructuring of the political system.

Regulations on how to calculate benefits for people retiring before age are as follows:

For those with a remaining life expectancy of more than 5 years but reaching 10 years of retirement age as prescribed in Point b, Clause 2, Article 7 of Decree 178/2024, they are entitled to the following 3 allowances:

One is a one-time retirement benefit for the number of months of early retirement:

For retirees within the first 12 months: One-time pension benefit = Current monthly salary as prescribed in Clause 2, Article 3 of this Circular x 0.9 x 60 months.

For retirees from the 13th month onwards: One-time pension benefit = Current monthly salary as prescribed in Clause 2, Article 3 of this Circular x 0.45 x 60 months.

Second, allowance for years of early retirement: For each year of early retirement (full 12 months), you will receive 4 months of current salary.

The allowance level for the number of years of early retirement = Current monthly salary as prescribed in Clause 2, Article 3 of this Circular x 4 x the number of years of early retirement as prescribed in Clause 4, Article 3 of this Circular.

Third, allowances based on working time with compulsory social insurance contributions:

For the first 20 years of work with mandatory social insurance contributions, a subsidy of 5 months of current salary will be provided; for the remaining years (from the 21st year onwards), each year a subsidy of 0.5 months of current salary will be provided.

The allowance level is calculated based on the working time with compulsory social insurance = Current monthly salary x 5 (for the first 20 years of working with compulsory social insurance) + 0.5 x the remaining number of working years with compulsory social insurance from the 21st year onwards.

Thus, Mr. T. can base on the above instructions to calculate the regime in case of early retirement according to the provisions of Decree 178/2024.