How to determine the time to calculate the staff reduction allowance

Nam Dương |

A reader with email ourxxx@gmail.com asked: How to determine the time to calculate the staff reduction allowance?

The Lao Dong Newspaper Legal Consulting Office replied:

According to Clauses 4,5,6,7,8, Article 5 of Decree 154/2025/ND-CP (effective from June 16, 2025), it is stipulated that the time and salary to calculate the allowance for staff reduction are as follows:

4. The working time with compulsory social insurance payment of subjects specified in Article 2 to calculate the allowance specified in Articles 6, 7, 8, and 9, Article 10 of this Decree is the total working time with compulsory social insurance payment in agencies of the Party, State, the Vietnam Fatherland Front, socio-political organizations from central to commune level and armed forces but have not received severance pay or have not received one-time social insurance or have not received demobilization or discharge.

The working time with compulsory social insurance payment of subjects specified in Article 17 to calculate the allowance specified in Articles 6, 7, and 8 of this Decree is the total working time with compulsory social insurance payment but not yet receiving severance allowance or not yet receiving one-time social insurance or not yet receiving demobilization or discharge allowance.

5. The working time to calculate the allowance prescribed in Clause 1, Article 9 of this Decree is the total working time in the position of non-professional worker at the commune level and the working time with compulsory social insurance payment in other job positions.

6. The working time to calculate the allowance prescribed in Clause 1, Article 10 of this Decree is the total working time in the title of non-professional worker at the commune level, in villages and residential groups and the working time with compulsory social insurance payment in other job positions.

7. The period to calculate the allowance according to the number of working years prescribed in Articles 6, 7, 8, Clause 1, Article 9, Clause 1, Article 10 of this Decree, if there are odd months, will be rounded up according to the principle: from 01 month to full 06 months is counted as 0.5 years and will receive a subsidy equal to the subsidy of 0.5 years; from over 06 months to under 12 months is counted as 01 year.

8. The period of early retirement to calculate the allowance prescribed in Point b, Clause 1, Article 9 and Point b, Clause 1, Article 10 of this Decree is the period from the time of retirement to the retirement age prescribed in Appendix I, Appendix II issued with Decree No. 135/2020/ND-CP.

Thus, the determination of the time to calculate the staff reduction subsidy is regulated as above.

Legal advice

Call the legal advice hotline: 0979310518, 0961360559 to receive a quick, timely response or email us: tuvanphapluat@laodong.com.vn for a response.

Nam Dương
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