Why is the payment of monthly pensions and social insurance benefits in Hanoi made twice starting in April 2023?

Main Content

• Why is the payment of monthly pensions and social insurance benefits in Hanoi made twice starting in April 2023?
• In 2023, what is the monthly pension for employees participating in compulsory social insurance in Vietnam?
• What is the monthly pension for employees who take early retirement in Vietnam?

Why is the payment of monthly pensions and social insurance benefits in Hanoi made twice starting in April 2023?

On March 31, 2023, according to information from the Hanoi Social Insurance Agency, in the spirit of improving service quality and also in order to make the full and safe payment of pensions and allowances in accordance with regulations, from April 2023, Hanoi City Social Insurance will make the payment of monthly pensions and social insurance benefits twice:

- Phase 01: pay on the 28th of every month.

- Phase 02: from the 28th to the end of office hours on the last working day of the month for cases where there is a new decision on benefits, received from other provinces or from the police or military branches.

The reason for making the payment twice is to help newcomers receive a decision, and immediately enjoy the regime that month without having to wait until the next month. In addition, the payment twice also helps the social insurance agency coordinate with the City Post Office to have time to review and verify beneficiary information, and promptly report the reduction of cases where beneficiaries have died to avoid payment, and then have to make the withdrawal.

Thus, the district social insurance agencies in Hanoi should coordinate with the Post Office to fully finalize the paid amount and the amount of late receipts to update the data on the payment list next month.

In 2023, what is the monthly pension for employees participating in compulsory social insurance in Vietnam?

In Article 7 of Decree 115/2015/ND-CP, the monthly pension of employees participating in compulsory social insurance in 2023 is calculated according to the following formula:

Where:

- From January 1, 2016 until January 1, 2018, each retired employee 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 male employees, or 3%, for female employees, for each additional year of social insurance payment provided that the maximum rate is 75%.

- From January 1, 2018, each retired female employee 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 payment provided that the maximum rate is 75%;

- From January 1, 2018, each retired male employee shall be entitled to a monthly pension rate of 45% equivalent to the number of years of social insurance payment in the below table, which shall be added with 2% for each additional year of social insurance payment provided that the maximum rate is 75%.

What is the monthly pension for employees who take early retirement in Vietnam?

- The monthly pension of a person who takes early retirement in Vietnam is calculated as a full-age retiree. For each year of early retirement, it is reduced by 2%.

- The average monthly salary as the basis for social insurance payment for pension calculation is specified in Article 9 of Decree 115/2015/ND-CP as follows:

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 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.

...

Accordingly, the monthly pension of an employee who takes early retirement in Vietnam is calculated as a full-age retiree. For each year of early retirement, it is reduced by 2%.

Thus, so that the payment of pensions and social insurance benefits is conveniently made, Hanoi Social Insurance Agency requires the district social insurance agencies to coordinate with the Post Office to notify the payment plan beneficiaries. In addition, the Post Office is required to organize home payments for elderly, lonely, and sick beneficiaries who cannot come to receive pensions and social insurance benefits.

Hanoi Social Insurance Agency also recommends that beneficiaries should receive pensions and social insurance benefits through personal accounts to enjoy them quickly and conveniently.