The increase in the retirement age would lead to changes in companies' internal policies, for example, regulations on elderly employees and pension regimes. Therefore, companies should review Decree No. 135 to timely update their relevant internal policies as well as to ensure the compliance with new regulations under this decree.
We will keep you updated on any relevant future developments. In the meantime, if you have any questions or concerns, please do not hesitate to contact us.
In more detail
Decree No. 135 provides specific schedules for the increase of the retirement age as provided in the 2019 Labor Code, particularly as follows:
- For employees working in normal conditions, from 1 January 2021, the retirement age is 60 years and 3 months for males and 55 years and 4 months for females. For males, each subsequent year the retirement age will increase by three months up to a retirement age of 62 in 2028. For females, each subsequent year the retirement age will increase by four months up to a retirement age of 60 in 2035.
- The retirement age can be up to a maximum of five years lower than the retirement age of employees working in normal conditions, if the employee falls into one of the categories below:
(i) the employee has completed 15 years or more of performing heavy, hazardous or dangerous work, or extremely heavy, hazardous or dangerous work
(ii) the employee has worked for 15 years or more in areas with extreme socio-economic difficulties, including working periods in areas with a region-based allowance coefficient of 0.7 or higher before 1 January 2021
(iii) the employee suffers a working capacity decrease of 61% or more
(iv) the employee has completed 15 years of service or more comprising the period of performing the job as described in both items (i) and (ii) above
In addition, employees performing mining jobs in coal pits can retire a maximum of 10 years earlier than employees working in normal conditions. Decree No. 135 also provides the relevant list of mining jobs in coal pits.