Regime for village chiefs who are not yet old enough to retire must streamline the payroll

The Lao Dong Newspaper Legal Consulting Office replied:

Clause 6, Article 33 of Decree 33/2023/ND-CP stipulates: Part-time workers in villages and residential groups with no more than 03 positions (including Party Cell Secretary, Village Head or Residential Group Head, Head of the Front Working Committee) are entitled to monthly allowances. In case the Law has other provisions, it shall be implemented according to the provisions of that law.

Clause 5, Article 2 of Decree 154/2025/ND-CP (effective from June 16, 2025) stipulates the subjects implementing the staff streamlining policy as follows: Part-time workers in villages and residential groups who are redundant due to the arrangement of villages and residential groups will retire immediately from the date of the arrangement decision by the competent authority.

Clause 1, Article 10 of Decree 154/2025/ND-CP stipulates:

1. Non-professional workers in villages and residential groups who have not reached the retirement age prescribed in Appendix I and Appendix II issued with Decree No. 135/2020/ND-CP (excluding subjects specified in Clause 2 of this Article) are entitled to the following benefits:

a) For those who have worked for less than 05 years, they are entitled to the following benefits:

Receive a one-time allowance equal to 0.8 times the current monthly allowance multiplied by the number of months of work.

Receive a subsidy equal to 1.5 times the current monthly allowance for each year of work.

Receive a subsidy of 03 months of current monthly allowances to find a job.

Receive a period of compulsory social insurance payment or receive one-time social insurance according to the provisions of the law on social insurance.

b) For those who have worked for 05 years or more and have less than 05 years until retirement age, they are entitled to the following benefits:

Receive a one-time allowance equal to 0.8 times the current monthly allowance multiplied by the number of months of early retirement compared to retirement age.

Receive a subsidy equal to 1.5 times the current monthly allowance for each year of work.

Receive a subsidy of 03 months of current monthly allowances to find a job.

Receive a period of compulsory social insurance payment or receive one-time social insurance according to the provisions of the law on social insurance.

c) For those who have worked for 05 years or more and have reached the retirement age of 05 years or more, they are entitled to the following benefits:

Receive a one-time allowance equal to 0.8 times the current monthly allowance multiplied by 60 months.

Receive a subsidy equal to 1.5 times the current monthly allowance for each year of work.

Receive a subsidy of 03 months of current monthly allowances to find a job.

Receive a period of compulsory social insurance payment or receive one-time social insurance according to the provisions of the law on social insurance.

Thus, village heads who are not yet old enough to retire must streamline their staff according to Decree 154/2025/ND-CP to enjoy the above regimes.