Vietnam: How many more years do you need to pay insurance to enjoy a maximum pension of 75% according to the law?
Conditions for enjoying a pension in accordance with Vietnamese law?
Pursuant to the provisions of Article 54 of the Law on Social Insurance 2014 of Vietnam (amended by Point a, Clause 1, Article 219 of the Labor Code 2019 of Vietnam) stipulating the conditions for enjoying pensions as follows:
- 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.
- 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.
- 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.
- The Government shall provide for special cases of retirement age.
In addition, pursuant to the provisions of Clause 2, Article 169 of the Labor Code 2019 of Vietnam:
Article 169. Retirement ages
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2. 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.
Vietnam: How many more years do you need to pay insurance to enjoy a maximum pension of 75% according to the law?
Time to receive a pension in accordance with Vietnamese laws?
Article 59 of the Law on Social Insurance 2014 of Vietnam stipulates the time of pension enjoyment as follows:
Article 59. Time for pension enjoyment
1. For employees who are paying compulsory social insurance premiums as defined at Points a, b, c, d, dd, e and i, Clause 1, Article 2 of this Law, the time for pension enjoyment is the time stated in work cessation decisions issued by employers when the employees have fully satisfied the law-prescribed conditions for pension enjoyment.
2. For employees who are paying compulsory social insurance premiums as defined at Point h, Clause 1, Article 2 of this Law, the time for pension enjoyment is the month following the month when they have fully satisfied the conditions for pension enjoyment and submitted written requests to social insurance agencies.
3. For employees defined at Point g, Clause 1, Article 2 of this Law and persons who have their period of social insurance premium payment reserved, the time for pension enjoyment is the time stated in the written requests of the employees who have fully satisfied the prescribed conditions for pension enjoyment.
4. The Minister of Labor, Invalids and Social Affairs shall stipulate in detail the time for pension enjoyment for employees defined in Clause 1, Article 2 of this Law.
How many more years I need to pay insurance, I am entitled to a maximum female pension of 75% as prescribed by Vietnamese laws?
Pursuant to the provisions of Clause 2, Article 56 of the Law on Social Insurance 2014 of Vietnam:
Article 56. Monthly pension
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2. Since January 1, 2018, the monthly pension of employees who fully satisfy the conditions specified in Article 54 of this Law will equal 45% of the average monthly salary on which social insurance premiums are based as prescribed in Article 62 of this Law, and correspond to the following period of social insurance premium payment:
a/ For male employees who retire in 2018, 2019, 2020 and 2021 and since 2022, it is 16 years, 17 years, 18 years, 19 years and 20 years, respectively;
b/ For female employees who retire since 2018, it is 15 years;
For employees defined at Points a and b of this Clause, the pension rate shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%.
According to the above regulations, from 2018 onwards, for female employees, paying 15 years of social insurance is calculated as 45%, then every additional year of social insurance contribution is calculated by 2%. Therefore, the number of years of social insurance contributions that female employees are entitled to the maximum pension is calculated as follows: Number of years = 15 + (75 – 45): 2 = 30 years.
Thus: She is a woman who has participated in social insurance for 24 years. According to the above provisions, if you are a female employee, you must have a contribution period of at least 30 years, you will be entitled to a maximum pension of 75% of the average salary and social insurance contributions. Therefore, in her case, she needs to participate in social insurance for at least 06 more years to enjoy the maximum pension.
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