New subsidy level for Army Colonels retiring early

Lam Duy |

According to the draft of the 2nd Circular of the Ministry of National Defense, the Army Colonel can receive 2.422 billion VND when retiring early.

According to the Ministry of National Defense's Electronic Information Portal on March 26, after collecting opinions on the first draft, the Ministry of National Defense has just completed and is collecting opinions on the second draft of the Circular on policies and regimes when arranging and streamlining the organization and apparatus in the Army.

Compared to the first draft, the second draft has 18 articles, an increase of 6 articles. In which, Article 5 guides how to determine the time and age limit to calculate pension, demobilization, and one-time leave; how to calculate the number of months and years of early retirement; the time used as the basis for calculating the allowance; the age limit to calculate the allowance for subjects in the organizational arrangement according to the provisions of Article 5 of Decree No. 178/2024/ND-CP.

Articles 6, 7, and 8 guide how to calculate the one-time pension for early retirement; early retirement allowance according to the mandatory working period with social insurance (SI) for subjects in the restructuring of the apparatus; streamlining the payroll, restructuring, improving the quality of the team; not being old enough to be re-elected, reappointed or meeting the age requirements for re-election and reappointment as prescribed in Article 7 of Decree No. 178/2024/ND-CP; Point 6, Point 7, Point 8 of Decree No. 67/2025/ND-CP.

Accordingly, in the case of working at a unit directly affected by the apparatus arrangement, with 2 to 5 years left until the age limit, they will receive a one-time pension allowance for the number of months of early retirement; allowance for the number of years of early retirement and allowance according to the working period with compulsory social insurance contributions.

The draft Circular of the Ministry of National Defense cited that in this case, a Army Colonel born in May 1971, drafted in February 1990, will reach the age of 58, and by the end of May 2029, the highest age limit according to the rank of Colonel.

In March 2025, the unit will carry out the merger and this cadre will be decided by the competent authority to retire early from June 1, 2025 and receive an immediate pension, reaching the age of 54.

According to the provisions of the draft 2nd Circular, this Army Colonel is eligible for early retirement within the first 12 months from the effective date of the merger decision of the competent authority; the early retirement period is 4 years (48 months) and has 35 years and 4 months of service in the Army with compulsory social insurance contributions.

With the current salary before retirement (May 2025) of VND 30,000,000; in addition to receiving pension benefits according to the provisions of the law on social insurance, this Army Colonel also benefits the following benefits:

The one-time pension for the number of months of early retirement is: VND 30,000,000 x 1.0 month x 48 months of early retirement = VND 1,440,000,000.

The one-time allowance for the number of years of early retirement is: 30,000,000 VND x 5 months x 4 years of early retirement = 600,000,000 VND.

The one-time allowance for the number of years of work with compulsory social insurance contributions is: VND 30,000,000 x {05 months + (0.5 x 15.5 years)} = VND 382,500,000.

Accordingly, the total subsidy for the above-mentioned Army Colonel to receive when retiring early will be VND 2,422,500,000 (more than VND 2.422 billion).

Currently, the second draft of the Ministry of National Defense's Circular on policies and regimes for streamlining the organization of the Army is being widely consulted.

Lam Duy
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