Vietnam: How to calculate pensions in 2023? What is the pension benefit in 2023? What is the 1-time pension for retirement in 2023?
How to calculate pension in 2023 with employees participating in compulsory social insurance in Vietnam?
Monthly pension benefits
According to the provisions of Article 7 of Decree 115/2015 / ND-CP, the monthly pension of employees participating in compulsory social insurance in 2023 is calculated as follows:
Monthly pension | = | Monthly pension rate (%) | X | Average monthly salary for social insurance contributions |
Where:
- For male employees: 45% of the average monthly salary for social insurance contribution corresponds to 20 years of social insurance contribution. Then each year the contribution adds 2%, up to a maximum of 75%.
- For female employees: 45% of the average monthly salary for social insurance contribution corresponds to 15 years of social insurance contribution. Then each year the contribution is calculated by 2%, the maximum is equal to 75%.
- For female employees working full-time or non-specialized in communes, wards and towns eligible for pensions calculated according to the number of years of social insurance contribution and the average monthly salary for social insurance contributions:
+ Full 15 years of social insurance contribution is equal to 45% of the average monthly salary for social insurance contribution.
+ From full 16 to 20 years of social insurance contribution, an additional 2% is charged per year.
For employees retiring before age
The monthly pension of a person who is eligible to retire before the age is calculated as a full-age retiree, then for every year of retirement before the specified age, it decreases by 2%.
The average monthly salary for social insurance contributions for calculating pensions is specified in Article 9 of Decree 115/2015/ND-CP as follows:
Article 9. Average monthly salary as the basis for social insurance payment for determination of pension or lump-sum benefit
Average monthly salary as the basis for social insurance payment for determination of pension and lump-sum benefit prescribed in Article 62 of the Vietnam Law on Social insurance (hereinafter referred to as average monthly salary) shall be determined as follows:
1. Each employee subject to the State-prescribed salary regime and having the entire period of social insurance payment under this salary regime, his/her payment period shall be determined as follows:
a) The last 5 years prior to retirement if he/she begins paying social insurance before January 1, 1995;
b) The last 6 years prior to retirement if he/she begins paying social insurance between January 1, 1995 and December 31, 2000;
c) The last 8 years prior to retirement if he/she begins paying social insurance between January 1, 2001 and December 31, 2006;
d) The last 10 years prior to retirement if he/she begins paying social insurance between January 1, 2007 and December 31, 2015;
dd) The last 15 years prior to retirement if he/she begins paying social insurance between January 1, 2016 and December 31, 2019;
e) The last 20 years prior to retirement if he/she begins paying social insurance between January 1, 2020 and December 31, 2024;
g) The entire payment period if he/she begins paying social insurance from January 1, 2025.
2. Each employee who has the entire payment period the employer-decided salary regime, the average monthly salary as the basis for social insurance payment of the entire period shall apply.
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Vietnam: How to calculate pensions in 2023? What is the pension benefit in 2023? What is the 1-time pension for retirement 2023?
How to calculate pension in 2023 when participating in voluntary social insurance in Vietnam?
The pension of voluntary social insurance participants starting to receive salary in 2023 is calculated as follows:
Monthly pension | = | Monthly pension rate (%) | X | Average monthly income for social insurance contribution |
Where:
The monthly pension rate (%) is determined as follows:
- For male employees:
+ Paying the full 20 years of social insurance is 45% (employees retiring in 2023, paying the full 20 years of social insurance is 45%)
+ After that, for every additional year of social insurance contribution, an additional 2% is charged.
- For female workers
+ Paying the full 15 years of social insurance is 45%.
+ After that, for every additional year of social insurance contribution, an additional 2% is charged.
Note: The maximum benefit is 75%.
The average monthly income for social insurance contribution is calculated as the average of the monthly income for social insurance contribution of the entire closing period.
What is the 1-time pension for retirement in 2023 in Vietnam?
According to Article 58 of the Vietnam Law on Social Insurance 2014:
- Employees who have paid social insurance premiums for a period exceeding the number of years corresponding to the 75% pension rate are entitled to not only pension but also a lump-sum allowance upon retirement.
- The lump-sum allowance level shall be calculated based on the number of years of social insurance premium payment in excess of the number of years corresponding to the 75% pension rate, with half of the average monthly salary on which social insurance premiums are based for each of these years.
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