What are instructions for calculating pension in 2024 in Vietnam?

What are instructions for calculating pension in 2024 in Vietnam?

Clause 1, Article 7 of Decree 115/2015/ND-CP stipulates pension level of social insurance participants.

According to this regulation, employees' pensions are calculated 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.

At the same time, Article 56 of the Social Insurance Law 2014 guides method to calculate pensions for female employees in 2024 specifically:

The percentage (%) of monthly pension benefits is determined specifically:

For female workers: Pay 45% of social insurance for 15 years.

For male workers: Pay 45% of social insurance for 20 years (employees retiring in 2024 and paying 20 years of social insurance will get 45%).

After that, for each additional year of social insurance payment, an additional 2% is calculated. Note, the maximum benefit is 75%.

Note: The above instructions apply to the retirement regime of compulsory social insurance in Vietnam.

What are instructions for calculating pension in 2024 in Vietnam? (Image from the Internet)

In what cases do employees retire early but their pension is not deducted in Vietnam?

In Article 54 of the Social Insurance Law 2014, amended by Point a, Clause 1, Article 219 of the 2019 Labor Code, regulations on pension eligibility conditions, the following subjects will not have their pensions deducted if they retire early:

Conditions for receiving retirement pension

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.

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Thus, employees retire early but will not have their pension deducted when:

- Employee with reduced working ability; 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;

- Employees have worked in coal mines for at least 15 years;

- People infected with HIV due to occupational accidents while performing assigned tasks.

What is determination of time for pension enjoyment in Vietnam?

In Article 59 of the 2014 Law on Social Insurance, there are regulations on the time to receive pension. As follow:

- For employees who are paying compulsory social insurance in the following groups, the time to receive pension is the time stated in the resignation decision made by the employer when the employee is eligible to receive salary. retired according to the provisions of law.

+ People working under an indefinite-term labor contract, a definite-term labor contract, a seasonal labor contract or a certain job with a term of 3 months to less than 12 months, including labor contracts signed between the employer and the legal representative of a person under 15 years old according to the provisions of labor law;

+ People working under labor contracts with a term of from 01 full month to less than 03 months;

+ Officials, civil servants and public employees;

+ National defense workers, police workers, and other people working in cipher organizations;

+ Officers and professional soldiers of the people's army; officers, professional non-commissioned officers, officers, technical non-commissioned officers of the People's Public Security; People who do cipher work are paid the same as soldiers;

+ Non-commissioned officers and soldiers of the People's Army; non-commissioned officers and soldiers of the People's Public Security serving for a limited period of time; Military, police, and cipher students studying are entitled to living expenses;

+ People who work part-time in communes, wards and towns.

- For employees who are paying compulsory social insurance and are business managers or cooperative managers who receive a salary, the time to receive pension is calculated from the month immediately preceding when the employee is eligible to receive pension and has a written request sent to the social insurance agency.

- For employees who are working abroad under contract and who are reserving their time to pay social insurance, the time to receive pension is the time stated in the written request of the employee who is eligible to receive pension according to regulations.

Best regards!