How much will the pension for retirees before July 1, 2024 increase when implementing salary reform in Vietnam?
How much will the pension for retirees before July 1, 2024 increase when implementing salary reform in Vietnam?
At the 31st session on the afternoon of March 15th, the Standing Committee of the National Assembly provided opinions on the explanation, absorption, and adjustment of the draft Law on Social Insurance (amended).
The Minister of Labor - Invalids and Social Affairs expressed the following viewpoint:
"Our viewpoint is that the adjustment of the pension rate should not be lower than 50% compared to the salary increase after the reform to ensure harmony, balance, and prevent retirees from being left behind or disadvantaged during the salary reform," emphasized the Minister.
Regarding the current issue of pension increase, the Minister of Labor - Invalids and Social Affairs reported that after considering the opinions of the Central Steering Committee on salary reform, the Ministry has developed a plan to adjust the pension, dividing it into 3 groups:
- The first group consists of ordinary retirees. For this group, the pension increase will be calculated reasonably based on the working area and ensure harmony between individuals in the same position before and after July 1, 2024.
- The second group consists of retirees before July 1, 2024. The state needs to apply compensation measures to reduce the salary gap between retirees before and after the policy reform.
- The third group consists of retirees before 1995. The Minister stated that there will be special policies to further increase their pension.
Therefore, starting from July 1, 2024 when implementing salary reform, it is expected that retirees before July 1, 2024 will receive an appropriate increase in pension to ensure it is not lower than 50% compared to the salary increase after the reform, in order to maintain harmony, balance, and prevent retirees from being left behind or disadvantaged during the salary reform.
The state will apply compensation measures to reduce the salary gap between retirees before and after the policy reform.
How much will the pension for retirees before July 1, 2024 increase when implementing salary reform in Vietnam?
Vietnam: Will the retirement age of employees increase in 2024?
Pursuant to Article 169 of the 2019 Labor Code, retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.
From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.
Thus, it can be seen that the implementation of the roadmap to increase the retirement age for employees in normal working conditions will apply until 2028 (when male employees reach 61 years old) and 2035 ( when female workers reach 60 years old).
Therefore, if nothing changes, in 2024, the retirement age of employees in normal working conditions will continue to increase.
What are the regulations on the conditions for receiving retirement pension in Vietnam?
Pursuant to Article 54 of the Law on Social Insurance 2014, amended by Point a, Clause 1, Article 219 of the 2019 Labor Code, it is stipulated as follows:
Conditions for receiving retirement pension
1. An employee mentioned in Points a, b, c, d, g, h and i Clause 1 Article 2 of this Law, except for the cases specified in Clause 3 of this, will receive retirement pension if he/she has paid social insurance for at least 20 years and:
a) He/she has reached the retirement age specified in Clause 2 Article 169 of the Labor Code;
b) He/she has reached the retirement age specified in Clause 3 Article 169 of the Labor Code and has at least 15 years’ doing the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs; or has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region factor of at least 0,7 before January 01, 2021;
c) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 10 years and he/she has worked in coal mines for at least 15 years; or
d) He/she contracted HIV due to an occupation accident during performance of his/her assigned duty.
2. An employee mentioned in Points dd and e Clause 1 Article 2 of this Law will receive retirement pension if he/she has paid social insurance for at least 20 years and:
a) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 05 years, unless otherwise prescribed by the Law on Military Officer of Vietnam’s Army, the Law of People’s Police, the Law on Cipher and the Law on professional servicemen and women, national defense workers and officials;
b) His/her age is younger than the retirement age specified in Clause 3 Article 169 of the Labor Code by up to 05 years and he/she has at least 15 years’ doing the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs; or has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region factor of at least 0,7 before January 01, 2021; or
c) He/she contracted HIV due to an occupation accident during performance of his/her assigned duty.
3. A female employee that is a commune official or a part-time worker at the commune authority and has paid social insurance for 15 to under 20 years and reaches the retirement age specified in Clause 2 Article 169 of the Labor Code will receive the retirement pension.
4. The Government shall provide for special cases of retirement age
Thus, the conditions for for receiving retirement pension are implemented according to the regulations mentioned above.
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