Decree No. 135/2020/ND-CP on retirement ages

DECREE

Prescribing retirement ages^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 20, 2019 Labor Code;

Pursuant to the November 20, 2014 Law on Social Insurance;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

The Government promulgates the Decree prescribing retirement ages.

Article 1. Scope of regulation

This Decree details Article 169 of the Labor Code regarding retirement ages.

Article 2. Subjects of application

1. Employees and employers specified in Clauses 1, 2 and 3, Article 2 of the Labor Code.

2. Agencies, organizations and individuals involved in social insurance.

Article 3. Time of retirement and time of enjoyment of the retirement regime

1. The time of retirement is the last day of the month in which an employee reaches the prescribed retirement age.

In case an employee continues working after he/she reaches the prescribed retirement age, the time of retirement is the time of termination of his/her labor contract.

2. The time of enjoyment of the retirement regime is the first day of the month following the time of retirement.

3. In case it is impossible to identify the day and month of an employee’s birth but it is possible to identify only the year of the employee’s birth based on his/her dossier, January 1 of the year of his/her birth shall be used as a basis for determining the time of retirement and the time of enjoyment of the retirement regime.

Article 4. Retirement ages for employees working under normal working conditions

Retirement ages of employees working under normal working conditions specified in Clause 2, Article 169 of the Labor Code are stipulated in detail as follows:

1. From January 1, 2021, the retirement age of employees working under normal working conditions is full 60 years and 3 months, for male employees, or full 55 years and 4 months, for female employees; then it shall increase by 3 months every year for male employees until the retirement age reaches full 62 in 2028, or by 4 months every year for female employees until the retirement age reaches full 60 in 2035.

2. The roadmap for adjustment of retirement ages of employees specified in Clause 1 of this Article is provided in the table below:

The determination of the retirement age of an employee based on the month and year of his/her birth specified in this Clause shall be based on Appendix I to this Decree.

Article 5. Retirement earlier than the prescribed retirement ages for employees working under normal working conditions

Retirement earlier than the prescribed retirement ages for employees working under normal working conditions specified in Clause 3, Article 169 of the Labor Code is provided as follows:

1. An employee falling into one of the following cases may retire no more than 5 years earlier than the retirement age specified in Article 4 of this Decree at the time of retirement, unless otherwise prescribed by law:

a/ Having full 15 years or more doing heavy, hazardous or dangerous occupations or jobs or extremely heavy, hazardous or dangerous occupations or jobs on the list promulgated by the Ministry of Labor, Invalids and Social Affairs.

b/ Having full 15 years or more working in localities with extremely difficult socio-economic conditions, including the period of working in localities where a region-based allowance coefficient of 0.7 or higher is applied prior to January 1, 2021.

The Minister of Labor, Invalids and Social Affairs shall promulgate the list of localities with extremely difficult socio-economic conditions.

c/ Suffering a working capacity decrease of 61% or more.

d/ Having the total period of full 15 years or more doing the occupations or jobs specified at Point a and the period of working in the localities specified at Point b of this Clause.

2. The lowest retirement ages of employees specified in Clause 1 of this Article are provided in the table below:

The determination of the retirement age of an employee based on the month and year of his/her birth specified in this Clause shall be based on Appendix II to this Decree.

Article 6. Retirement later than the prescribed retirement ages for employees working under normal working conditions

Retirement later than the prescribed retirement ages for employees working under normal working conditions specified in Clause 4, Article 169 of the Labor Code is provided as follows:

1. An employee may retire later than the prescribed retirement age in case he/she reaches an agreement with the employer to continue working after the retirement age specified in Article 4 of this Decree.

2. The termination of labor contracts and settlement of social insurance regimes for employees specified in Clause 1 of this Article must comply with Section 3, Chapter III of the Labor Code and the law on social insurance.

Article 7. Transitional provisions

1. From January 1, 2021, the retirement regime bound by the age-related conditions for pension enjoyment specified in Articles 54 and 55, and Clause 1, Article 73, of the Law on Social Insurance shall be settled based on the retirement age and age-related conditions for pension enjoyment specified in Article 169 and Clause 1, Article 219 of the Labor Code, and this Decree.

2. For male employees born in December 1960 and female employees born in December 1965 who work under normal working conditions, the time of their retirement is December 31, 2020, and the time of pension enjoyment is January 1, 2021.

3. The standard age for determining the number of years of early retirement as a basis for calculating the reduced rate of pension enjoyment specified in Clause 3, Article 56 of the Law on Social Insurance is provided as follows:

a/ For employees specified at Points a, b, c, d, g, h and i, and Clause 1, Article 2 of the Law on Social Insurance

For employees working under normal working conditions, the standard age specified at Point a, Clause 1, Article 54 of the Law on Social Insurance, which was amended and supplemented at Point a, Clause 1, Article 219 of the Labor Code and in Article 4 of this Decree shall apply.

For employees doing heavy, hazardous or dangerous occupations or jobs or extremely heavy, hazardous or dangerous occupations or jobs, or working in localities with extremely difficult socio-economic conditions, including the period of working in localities where a region-based allowance coefficient of 0.7 or higher is applied prior to January 1, 2021, the standard age specified at Point b, Clause 1, Article 54 of the Law on Social Insurance, which was amended and supplemented at Point a, Clause 1, Article 219 of the Labor Code and in Article 5 of this Decree shall apply.

For employees working in coal mines provided in Appendix III to this Decree, the standard age is 10 years lower than the age specified at Point a, Clause 1, Article 54 of the Law on Social Insurance, which was amended and supplemented at Point a, Clause 1, Article 219 of the Labor Code and in Article 4 of this Decree shall apply.

b/ For employees specified at Points dd and e, Clause 1, Article 2 of the Law on Social Insurance

For employees working under normal working conditions, the standard age specified at Point a, Clause 2, Article 54 of the Law on Social Insurance, which was amended and supplemented at Point a, Clause 1, Article 219 of the Labor Code and in Article 4 of this Decree shall apply.

For employees doing heavy, hazardous or dangerous occupations or jobs or extremely heavy, hazardous or dangerous occupations or jobs, or working in localities with extremely difficult socio-economic conditions, including the period of working in localities where a region-based allowance coefficient of 0.7 or higher is applied prior to January 1, 2021, the standard age specified at Point b, Clause 2, Article 54 of the Law on Social Insurance, which was amended and supplemented at Point a, Clause 1, Article 219 of the Labor Code and in Article 5 of this Decree shall apply.

Article 8. Effect

1. This Decree takes effect on January 1, 2021.

2. From the effective date of this Decree, previous regulations which are contrary to this Decree and the following provisions cease to be effective:

a/ Article 6; Clause 3, Article 7 and Clause 2, Article 11, of the Government’s Decree No. 115/2015/ND-CP of November 11, 2015, detailing a number of articles of the Law on Social Insurance regarding compulsory social insurance.

b/ Point a, Clause 2, Article 5 of the Government’s Decree No. 134/2015/ND-CP of December 29, 2015, detailing a number of articles of the Law on Social Insurance regarding voluntary social insurance.

c/ Points a and b, Clause 1, Article 8; Clause 3, Article 9; and Clause 2, Article 12, of the Government’s Decree No. 33/2016/ND-CP of May 10, 2016, detailing and guiding a number of articles of the Law on Social Insurance regarding compulsory social insurance for army men, persons working in the people’s public security forces and persons engaged in cipher work and enjoying salaries like army men.

Article 9. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendices to this Decree are not translated.