When is the time for pension enjoyment for employees working under employment contracts in Vietnam?
- When is the time for pension enjoyment for employees working under employment contracts in Vietnam?
- What are the instructions to calculate pension for employees when participating in compulsory social insurance in Vietnam in 2023?
- Vietnam: May a person on pension who moves to another place of residence within the country receive social insurance allowance at the new place of residence?
When is the time for pension enjoyment for employees working under employment contracts in Vietnam?
Pursuant to Clause 1, Article 59 of the Law on Social Insurance 2014, regulations on time for pension enjoyment are as follows:
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.
...
Accordingly, 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.
When is the time for pension enjoyment for employees working under employment contracts in Vietnam? (Image from the Internet)
What are the instructions to calculate pension for employees when participating in compulsory social insurance in Vietnam in 2023?
According to the provisions of Article 56 of the Law on Social Insurance 2014, guided by Article 7 of Decree 115/2015/ND-CP, there are provisions as follows:
Monthly pension
The monthly pension prescribed in Article 56 of the Law on Social insurance as follows:
1. The monthly pension of an employee equals his monthly pension rate multiplied by (x) the average monthly salary as the basis for social insurance payment.
...
Thus, the 2023 monthly pension for employees participating in compulsory social insurance is calculated according to the following formula:
Monthly pension = Monthly pension rate x Average monthly salary as the basis for social insurance payment.
In there:
(1) The pension rate in 2023 is calculated as follows:
Female employees shall be entitled to a monthly pension rate of 45% equivalent to 15 years of social insurance payment, which shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%.
According to the provisions of Article 56 of the Law on Social Insurance 2014, the monthly pension of employees who shall be reduced by 2% for each year of early retirement. In case an employee’s age is short of up to 6 months compared to the retirement age, his/her pension shall be reduced by 1%; if his/her age is short of under 6 months, his/her pension shall not be reduced due to early retirement.
For example: Ms. A is 53 years old, works under normal conditions, has a 61% reduction in working capacity, has 27 years of social insurance contributions, and quits her job with pension from June 1, 2016. Ms. A's pension entitlement rate is calculated as follows:
- The first 15 years are calculated at 45%;
- From the 16th year to the 27th year is 12 years, add: 12 x 3% = 36%;
- The total of the above ratios is: 45% + 36%=81%
Maximum level 75%
- Ms. A retires 2 years before the prescribed age of 55, so the pension rate is calculated to decrease: 2 x 2% = 4%;
Thus, Ms. A's monthly pension entitlement rate is 75% - 4% = 71%.
Male employees: shall be entitled to a monthly pension rate of 45% equivalent to 15 years of social insurance payment, which shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%. The way to calculate the pension rate for male employees is similar to the way to calculate the pension rate for female employees.
(2) The average monthly salary used for calculating compulsory social insurance contributions for participants will depend on the monthly social insurance contribution of the worker and will be multiplied by the exchange rate coefficient (or the monthly social insurance salary adjustment coefficient) corresponding to each year.
The calculation of the average monthly salary for social insurance contributions is carried out according to the regulations in Article 62 of the Law on Social Insurance 2014, Article 9 of Decree 115/2015/ND-CP, and Article 20 of Circular 59/2015/TT-BLDTBXH.
Note: The minimum monthly pension of workers participating in compulsopry social insurance and meeting the conditions for receiving a pension is equal to the basic salary, except for cases where the worker is a non-specialized worker in a commune, ward, or town, or female workers who are specialized or non-specialized workers in a commune, ward, or town participating in social insurance and have contributed for at least 15 years but less than 20 years and have reached the age of 55.
Vietnam: May a person on pension who moves to another place of residence within the country receive social insurance allowance at the new place of residence?
In Article 115 of the Law on Social Insurance 2014, there are regulations on change of places for receiving pension or social insurance allowance as follows:
Change of places for receiving pension or social insurance allowance
When a person on pension or monthly social insurance allowance moves to another place of residence within the country and wishes to receive social insurance allowance at the new place of residence, he/she shall submit an application to the social insurance agency of the place where he/she currently receives the allowance.
Within 5 working days after receiving such application, the social insurance agency shall settle the receipt of pension or social insurance allowance by the employee at the new place of residence, or issue a written reply clearly stating the reason for its refusal to settle such receipt.
Thus, pensioners who move to another province are still eligible to receive social insurance in their new place of residence. The social insurance agency will be responsible for processing within 05 working days from the date of receipt of the application.
LawNet