The Vietnamese government is set to revamp its labor policies with the introduction of Decree No. 67/2025/NĐ-CP, which aims to address retirement and employment procedures for public officials and employees. This decree encompasses various modifications, broadening the scope of regulation and implementing new benefits for those retiring early.
Under the new decree, there are significant changes to several key areas. For starters, the scope of the decree has been expanded to encompass organizations allied with the Communist Party of Vietnam and the state, including the Vietnam Fatherland Front, along with various socio-political organizations across central, provincial, and district levels. This regulation marks the government's commitment to reorganizing its political institutions and improving the efficiency of its workforce. The decree also specifies criteria for appraising officials, public employees, and workers involved in these organizational adjustments.
One of the significant adjustments within the decree involves the formulation of what is termed as the "salary preservation disparity coefficient." This new provision intends to safeguard the rights of officials and public employees at the time of resignation by ensuring they do not suffer disproportionate disparities during their retirement process.
Another important element of the decree is the modification of retirement conditions. Officials wishing to retire before the stipulated age will now be able to do so under certain criteria. Notably, those with 2 to 5 years remaining until the legal retirement age— as specified under Decree No. 135/2020/NĐ-CP— can retire without facing deductions to their pension for early resignation, provided they have met their social insurance contribution obligations. Alongside their pension, they will receive financial support amounting to five months of their current salary for each year they retire early.
Further, those officials who have worked for 20 years or more will also receive additional compensation of five months' pay. The support continues from the 21st year of service, where these retirees will be granted half of their monthly salary for every year served. These adjustments are likely aimed at encouraging capable personnel to transition smoothly out of the workforce, facilitating organizational structuring at multiple government levels.
According to the Ministry of Home Affairs, the revisions came after consulting widely received feedback from various government agencies and departments about the operative details of Decree No. 178/2024/NĐ-CP. Consequently, the Politburo, moving swiftly to align these changes with national objectives, approved the proposed broadening of the decree’s scope and its application to various levels of public service and armed forces. This swift action demonstrates the urgency of addressing the efficacy of the country’s public service workforce.
They plan to streamline the management processes of organizations involved and tackle issues prevalent within local management, ensuring compliance and efficiency across public service sectors.
Returning to the supplementary definitions under Decree No. 67/2025, more transparency is advocated about the financial resources necessary for implementing these policies. The Ministry highlighted several issues, including inconsistencies across regional support policies, which can drastically differ from one local area to another. Proposed amendments will limit additional local support to 30% to promote fairness and prevent disparities across different provinces.
To facilitate these changes, the government plans to correct and amend the existing financial mechanisms to adequately support public units assured of their fiscal resources. This strategy ensures compliance with long-term operational viability.
Overall, the adjustments signify significant progress as they not only refine existing norms surrounding employment and retiree benefits but also set clear pathways for streamlining public service organizations. With Decree No. 67/2025/NĐ-CP set to take effect from March 15, 2025, the Vietnamese government aims to empower its workforce by providing them with structured paths for retirement and appreciating their contributions via supplemental financial incentives.
