Uni 11-08-2014 - Guidance on severance allowance

According to official letter No. 2785/LĐTBXH-LĐTL:

• When labor contracts terminate ( except for enough conditions for retirement), employers are responsible for paying severance allowance to employees who have usually worked more 12 months, each year of working has allowance of half of a month’s salary.
• Working time to calculate severance allowance is the time that employees have actually worked for employers minus the time that employees have participated in unemployment insurance under regulations of Law on social insurance and the working time that employers have paid severance allowance.
• Salary to calculate severance allowance is the average salary stated in the contract of 6 continuous months before employers resign.