How to calculate allowance Village head born in 1965 resigned due to village merger

Reader asks: I am male, born on January 2, 1965, worked as Village Head from January 7, 2008 to June 30, 2026, then quit my job due to village merger, the allowance received is 5,850,000 VND. So how much allowance do I receive according to Decree 154/2025/ND-CP on streamlining staff?

YouMe Law Company Limited answers:

Readers who are Village Heads are subject to non-specialized activities in the village (according to the provisions of Clause 1, Article 14 of Decree No. 185/2026/ND-CP). Readers are redundant and immediately quit their jobs due to village arrangement and merger (according to Clause 5, Article 2 of Decree No. 154/2025/ND-CP).

Regarding retirement age and early retirement time: Reader is male, born January 2, 1965. Based on the provisions of Appendix I of Decree 135/2020/ND-CP, your retirement age in normal working conditions is 61 years and 6 months.

People born on January 2, 1965 will reach 61 years and 6 months old on July 2, 2026.

The retirement time of readers according to the law is the end of the last day of the month of reaching retirement age (end of July 2026), so the expected retirement benefit period is from August 1, 2026.

Meanwhile, readers take leave from June 30, 2026 (starting from July 1, 2026), so the time readers take leave before the prescribed retirement age is 01 month.

Regarding working time: According to Clause 7, Article 5 of Decree 154/2025/ND-CP, the time to calculate allowances based on the number of years of service, if there are odd months, is rounded according to the principle: from 01 month to full 06 months is calculated as 0.5 years; from over 06 months to under 12 months is calculated as 01 year. Because the working time of the reader is 18 years 5 months 23 days, it is converted to 18.5 years to calculate allowances.

Thus, the reader is a non-specialized worker in the village who is under 5 years old to retire and has more than 5 years of service, so he falls into the case of applying the policy specified in Point b Clause 1 Article 10 of Decree 154/2025/ND-CP.

With the information provided by readers including the current monthly allowance of 5,850,000 VND, working time converted to 18.5 years, and retirement one month early, the specific allowance for readers is calculated as follows:

Job seeking allowance

Equal to 03 months of monthly allowance currently enjoyed to find a job.

3 × 5. 850. 000 = 17. 550. 000 VND

Allowances by number of years of service

1.5 times the current monthly allowance for each year of work (the odd time from 1 to 6 months is calculated as 0.5 years).

18.5 × 1.5 × 5,850,000 = 162,337,500 VND.

Allowances due to retirement before retirement age regulations

Equal to 0.8 times the current monthly allowance multiplied by the number of months of early retirement compared to the retirement age.

0.8 × 5. 850. 000 × 1 = 4. 680. 000 VND

Total one-time allowance received: 184,567,500 VND.

The total amount of one-time payroll streamlining allowance readers expect to receive is 184,567,500 VND.

In addition, readers are entitled to preserve the time of compulsory social insurance contribution or enjoying one-time social insurance benefits according to the provisions of the law on social insurance (if they participate).

Note that this is a reference calculation level based on the information provided by readers. When resolving the regime, the competent authority will accurately determine the number of months of early retirement, and the working time to be calculated for benefits.

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