Can I retire at 57 years old in Vietnam?

Can I retire at 57 years old in Vietnam?

In Clause 1, Article 5 of Decree 135/2020/ND-CP stipulating early retirement (before the retirement age under ordinary working conditions) as follows:

Early retirement (before the retirement age under ordinary working conditions) as prescribed in clause 3 Article 169 of the Labor Code is specified as follows:

1. An employee, in any of the following circumstances, may retire at the age earlier but not exceeding 5 years before the statutory retirement age provided for in Article 4 hereof, determined until the retirement date, unless otherwise prescribed by law:

a) He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs.

b) He/she has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region-based allowance of at least 0.7 (allowance for those working in disadvantaged areas) before January 01, 2021 on the list of the Minister of Labor, War Invalids and Social Affairs.

c) His/her work capacity reduction is at least 61%.

d) He/she has at least total 15 years’ doing the occupations specified in point a and working in the areas specified in point b.

Thus, if you have an accident and your work capacity reduction is over 61%, when you are 57 years old, you can retire before the age prescribed by law in Vietnam.

What are conditions for receiving retirement pension in Vietnam?

Article 54 of the Law on Social Insurance 2014 as amended by Point a, Clause 1, Article 219 of the Labor Code 2019 provides for conditions for receiving retirement pension as follows:

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.

According to this Article, in order to receive a pension, you must meet the above conditions as prescribed by law in Vietnam.

What are regulations on monthly pension in Vietnam?

Article 56 of the Law on Social Insurance 2014 stipulates the monthly pension rate as follows:

1. From the effective date of this Law to January 1, 2018, the monthly pension of employees who fully satisfy the conditions specified in Article 54 of this Law must equal 45% of the average monthly salary on which social insurance premiums are based as prescribed in Article 62 of this Law, corresponding to 15 years of social insurance premium payment, which shall be added with 2%, for men, or 3%, for women, for each additional year of social insurance premium payment, but must not exceed 75%.

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%.

3. The monthly pension of employees who fully satisfy the conditions specified in Article 55 of this Law shall be calculated as stipulated in Clauses 1 and 2 of this Article, and 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.

4. The monthly pension of female employees who fully satisfy the conditions for pension enjoyment specified in Clause 3 of Article 54 shall be calculated based on the period of social insurance premium payment and average monthly salary on which social insurance premiums are based, specifically as follows: for a period of full 15 years, the monthly pension must equal 45% of the average monthly salary on which social insurance premiums are based as specified in Article 62 of this Law; for a period of between full 16 years to under 20 years, the monthly pension shall be added with 2% for each additional year of payment.

5. The lowest monthly pension of employees covered by compulsory social insurance who fully satisfy the conditions for pension enjoyment specified in Article 54 or 55 of this Law must equal the statutory pay rate, except the cases specified at Point i, Clause 1, Article 2, and Clause 3, Article 54, of this Law.

6. The Government shall detail this Article.

Above is the monthly pension the employee is entitled to in accordance with the law in Vietnam.

Best Regards!