The compensation and severance payments for full-time contractual union officials will be completed by November 1 at the latest. — VNA/VNS Photo

HÀ NỘI — According to the Việt Nam General Confederation of Labour (VGCL), approximately 425 full-time union officials are set to retire as part of ongoing administrative restructuring, with compensation expected to exceed VNĐ400 billion (US$15.2 million).

In May this year, the Politburo issued Conclusion No 157-KL/TW, which set out to end trade union activities within state-funded administrative bodies, armed forces units and public service agencies, in line with upcoming amendments to the Constitution and the trade union law.

Government Resolution No 07/2025/NQ-CP stated that full-time contractual union officials, whose salary and allowance are paid by union funds, are among the five categories eligible for allowance or severance pay due to the restructuring.

The first category includes people with less than two years until retirement age. They will receive a one-time retirement allowance, calculated as 80 per cent of their current monthly salary multiplied by the number of months they retire early.

If they meet the required 15 years of service with mandatory social insurance contributions to qualify for a pension, they will receive retirement benefits according to the law without reduction due to early retirement. 

The second category comprises individuals between two and five years from retirement age. Their one-time retirement allowance is calculated in the same way as the first group. They are also not subject to early retirement reduction if they have met the requirements for social insurance contributions. 

This group also receives an allowance equivalent to four months’ pay for each year of early retirement, and three months’ pay for the first 15 working years with social insurance contributions. Counting from their 16th working year, they will receive half of their current monthly salary for every year that they contributed to the social insurance fund. 

The third category includes people between five and 10 years from retirement age, who will receive a one-time retirement calculated as 70 per cent of their current monthly salary multiplied by 60 months.

Early retirement reduction will also not be applicable if they have met the required 15 years of service with insurance. Additional allowances include three months’ pay for each year of early retirement, three months’ pay for the first 15 working years with mandatory social insurance contributions. They will also receive half a month’s pay for each subsequent year of service with insurance contributions, from the 16th year onward.

The fourth category is for cases not eligible for early retirement policies, who will be entitled to a severance package. This group can also retain their social insurance contribution period, or receive a one-time social insurance payment and unemployment insurance, as stipulated by law. 

The fifth category comprises individuals who have reached retirement age. They will receive the same benefits as cadres, civil servants, public employees, workers and armed forces personnel according to Government Decree No 135/2020/NĐ-CP.

At a recent press briefing of the VGCL, the confederation’s deputy head of the Policy and Labour Relations Department Hồ Thị Kim Ngân said that these compensation and severance payments will be completed by November 1 at the latest.

“As this concerns the rights of workers, the VGCL will soon issue an implementation guideline. After that, the confederation’s units will issue decisions on early retirement or resignation in October 2025,” said Ngân.

The funds for paying allowances, compensation or severance to full-time contractual union officials will come from the union budget. — VNS