On July 22, 2015, the Government issued the Decree No. 63/2015/ND-CP dated July 22, 2015 of the Government providing the policies towards redundant employment in accordance with the restructuring of state-owned one member limited companies.
Accordingly, policies towards redundant employees that are recruited before April 21st, 1998 or before April 26th, 2002 by the time the competent agencies grant approval for the plans on labor arrangement or the Court begins the bankrupt procedures are such as male redundant employees from 55 years old to 59 years old and female redundant employees from 50 years old to 54 years old who have been paying social insurance for at least 20 years are eligible for retirement pension; retirement pension is not reduced due to premature retirement; a pension equivalent to 03-month salary shall be provided for every year of
retirement (regardless of odd months) and a pension equal to 01 month’s salary regulated by the Government shall be provided for every working year having social insurance.
If a employee is eligible for retirement but still has to pay the social insurance premiums for not more that 06 more months to be eligible for retirement pension, then the remaining amount shall be paid in lump sum by the State to the pension funds and death benefit funds to handle the retirement. The level of payment for the remaining amount shall be equivalent to the social insurance premium of the month before the resignation that is paid by the employee and employer multiplied the number of remaining months.
This Decree takes effect on September 15, 2015 and replaces the Decree No. 91/2010/ND-CP dated August 20th, 2010.
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