How to calculate severance pay according to Decree 178

Quỳnh Chi |

Reader Le Trung asked: How is the specific calculation of severance pay according to Decree 178?

Youme Law Firm LLC said that according to the provisions of Articles 5 and 6, Circular 1/2025/TT-BNV and Article 9, Article 10 of Decree 178/2024/ND-CP, amended and supplemented by Clause 9, 10, Article 1 of Decree 67/2025/ND-CP, in the process of implementing the organizational arrangement of the political system, civil servants, public employees and employees are allowed to quit their jobs by competent authorities, if they meet the conditions, they will receive 4 severance pay.

The method of calculating severance pay according to Decree 178 for each subject is as follows:

1. severance pay:

- Resignation for the first 12 months:

Subsidy level = Current monthly salary x 0.8 x Time to calculate severance pay

- Quitting work from the 13th month onwards:

Subsidy level = Current monthly salary x 0.4 x Time to calculate severance pay

2. Allowances for working time with compulsory social insurance contributions:

Subsidy level = Current monthly salary x 1.5 x Number of years of work with compulsory social insurance contributions

3. Job search allowance:

Only applicable to cadres, civil servants and people working at associations specified in Point a, Point b, Point g Clause 1 and Clause 3, Article 2 of Decree 178/2024/ND-CP, amended and supplemented by Article 1 of Decree 67/2025/ND-CP.

Subsidy level = Current monthly salary x 3

Quỳnh Chi
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