Youme Law Firm LLC replied: Cadres, civil servants, public employees (CBCCVC), and employees who retire early according to 178/2024 will receive both pensions and additional allowances. Below are 2 notes on early retirement benefits according to Decree 178.
How to calculate benefits when retiring early according to Decree 178
In case of remaining 2 - 5 years until retirement age, cadres, civil servants and employees will receive the following 3 allowances:
First: One-time pension for the number of months of early retirement
In case of retirement within the first 12 months:
Subsidy level = Current salary x 1.0 x Number of months of early retirement.
In case of retirement from the 13th month onwards:
Subsidy level = Current monthly salary x 0.5 x Number of months of early retirement
- Allowance for the number of years of early retirement
Subsidy level = Current salary x 5 x Number of months of early retirement.
Allowances according to the working period with compulsory social insurance contributions
In case of the first 20 years of work with compulsory social insurance contributions, a subsidy of 5 months of current salary will be granted. For the remaining years (from the 21st year onwards), each year will be subsidized with 0.5 months of current salary.
Specific formula:
Subsidy level = Current salary x 5 (for the first 20 years of work with compulsory social insurance contributions) + 0.5 x Number of years of work with remaining compulsory social insurance contributions from the 21st year onwards
Second: In case of retirement age of more than 5 years - 10 years
According to Point b, Clause 2, Article 7 of Decree 178/2024, cadres, civil servants and employees are entitled to the following 3 allowances:
One-time pension for months of early retirement. In which:
In case of retirement within the first 12 months:
Subsidy level = Current monthly salary x 0.9 x 60 months.
In case of retirement from the 13th month onwards:
Subsidy level = Current monthly salary x 0.45 x 60 months.
Allowance for the number of years of early retirement:
For each year of early retirement (12 months), they will receive 4 months of current salary.
Subsidy level = Current monthly salary x 4 x Number of years of early retirement
Allowances according to the working period with compulsory social insurance contributions:
In case the first 20 years of work have compulsory social insurance contributions, they will be subsidized with 5 months of current salary; for the remaining years (from the 21st year onwards), each year will be subsidized with 0.5 months of current salary.
Subsidy level = Current salary x 5 (for the first 20 years of work with compulsory social insurance contributions) + 0.5 x Number of years of work with remaining compulsory social insurance contributions from the 21st year onwards.
Third: In case of being under 2 years old until retirement age
Pursuant to Point d, Point d, Clause 2, Article 7 of Decree 178/2024, in cases where there is less than 2 years left until retirement age - a one-time pension allowance is enjoyed for the number of months of early retirement as calculated for retirees within the first 12 months as prescribed in Point a, Clause 1, Article 4 of Circular 1/2025 of the Ministry of Home Affairs.
Subsidy level = Current monthly salary x 1.0 x Number of months of early retirement
Maximum pension level for early retirement according to Decree 178
According to regulations, the maximum pension when retiring early for cadres, civil servants, public employees and workers according to Decree 178 is 75%.
For female workers: Monthly pension = 45% of average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
For male workers: Monthly pension = 45% of average salary used as the basis for social insurance contributions corresponding to 20 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
Thus, cadres, civil servants and employees are entitled to a maximum of 75% of the pension rate when retiring early according to Decree 178.
