Today : Mar 04, 2025
U.S. News
04 March 2025

Vietnam Announces New Early Retirement Policy For Civil Servants

The Ministry of Finance outlines conditions for voluntary retirement and employment termination for public employees.

The Ministry of Finance has recently issued document 1767/BTC-TCCB on February 14, 2025, which provides new guidance on implementing early retirement policies for civil servants. This guidance falls under Decree No. 178/2024/NĐ-CP and outlines the conditions under which civil servants, public employees, and laborers can voluntarily apply for early retirement.

According to the ministry's document, eligible individuals for this voluntary retirement must meet specific conditions. For early retirement, one criterion states they should have remaining working time until their retirement age of ten years or less, as stipulated in Appendix I of Decree No. 135/2020/NĐ-CP. Alternatively, they may qualify if they have five years or less remaining until retirement age, as allowed by Appendix II of the same decree. Importantly, individuals must also have paid the requisite social insurance contributions to be eligible for any pension benefits.

Another important aspect of the new policy focuses on conditions for termination of employment. For example, those who hold leadership roles and are part of redundant positions within their unit, or who are placed in lower leadership posts after restructuring, can seek voluntary resignation. The policy also sets quality assessment benchmarks: any civil servants, public employees, or laborers who have received performance evaluations of 'completed tasks' or lower for two out of the last three years may qualify for early termination.

There are additional stipulations related to health and legal requirements. If individuals have taken sick leave due to certified illnesses covered by social insurance for many days—equal to or surpassing the maximum number allowed under the Law on Social Insurance—they can also apply for termination. A significant change to the legal framework could leave some individuals without the required professional qualifications for their current roles, prompting voluntary resignations even when they are offered alternative positions.

Heads of units will carry significant responsibility under this new policy, as they are required to issue specific guidance relevant to the characteristics of each organization. This directive aims to streamline operations and facilitate the orderly transition of human resources within the civil service.

While this reform is expected to impact many within the civil service, it raises concerns about workforce stability and the complexity of implementation. The Ministry of Finance aims to ease transitions for civil servants who might seek to retire early, ensuring they have clarity on their rights and benefits.

The government's move toward allowing earlier retirements and termination reflects broader changes within the labor market and administrative efficiency goals. Yet, this change has sparked diverse reactions among civil servants, some voicing support for the potential flexibility it affords, and others expressing concern about the pressure it may create, particularly among those nearing retirement age who now face increased scrutiny under the new quality assessment metrics.

Critics warn of the potential downsides of this early retirement initiative, particularly with regards to maintaining adequate manpower levels within important government functions. Proponents, on the other hand, suggest it may allow new talent to emerge, injecting fresh skills and energy within the civil service ranks.

Going forward, the ministry's newly published document is expected to guide the next phase of workforce planning and development. With the implementation of these guidelines, civil servants and public sectors remain vigilant as they navigate the shifts sparked by Decree No. 178/2024/NĐ-CP, anticipating how their professional environments may evolve under this new framework.

The Ministry of Finance's proactive stance is seen not only as necessary but as timely, reflecting broader societal needs. The successful handling of this transition will require careful management and clear communication from top levels down to individual civil servants and public employees, ensuring all parties understand the new criteria before they contribute to the overall workforce vision.