What are rates of monthly pension according to the Law on Social Insurance in 2024 in Vietnam?

Who are the beneficiaries and what are the conditions for pension in Vietnam?

Based on Article 64 of the Social Insurance Law 2024 on the beneficiaries and conditions for receiving pensions:

[1] For employees who leave their job and have at least 15 years or more of compulsory social insurance contributions:

- Includes the following subjects:

+ Persons working under indefinite-term labor contracts, fixed-term labor contracts with a term of at least one month, including cases where the employee and employer agree under different names but related to remunerated work, salary, management, operating, and supervision by one party

+ Officials and public employees

+ Defense workers and public employees, defense industry workers, police workers, and other personnel in cryptographic organizations

+ Employees working abroad under contracts, except as otherwise provided by international treaties to which the Socialist Republic of Vietnam is a party

+ Spouses who do not receive salaries from the state budget, assigned to work term together with members of representative agencies of the Socialist Republic of Vietnam abroad, entitled to living allowance policies

+ Business managers, controllers, state capital representatives, capital representatives of enterprises according to the law; members of the Board of Directors, General Director, Director, members of the Board of Supervisors or controllers, and other managerial positions elected by cooperative entities, cooperative federations according to the provisions receiving salaries

+ Non-specialized activists at commune level, in villages, and residential areas

+ Persons working under indefinite-term labor contracts, fixed-term labor contracts with partial working time, whose monthly salary is equal to or higher than the minimum salary for compulsory social insurance contribution

+ Business household owners participating according to the regulations of the Government of Vietnam

+ Business managers, controllers, state capital representatives, capital representatives of enterprises according to the law; members of the Board of Directors, General Director, Director, members of the Board of Supervisors or controllers, and other managerial positions elected by cooperative entities, cooperative federations according to the provisions without receiving salaries.

+ Foreign workers in Vietnam who are required to participate in compulsory social insurance when working under fixed-term labor contracts of 12 months or more with employers in Vietnam, except in the following cases:

++ Internal transfers within enterprises under the law on foreign workers in Vietnam

++ At the time of signing the labor contract, they have reached retirement age

++ International treaties to which the Socialist Republic of Vietnam is a party have different provisions.

- Belongs to one of the following cases:

+ Reached retirement age

+ Reached retirement age and have a total compulsory social insurance contribution period of 15 years or more when engaged in heavy, hazardous, dangerous, or particularly heavy, hazardous, dangerous occupations or jobs as listed by the Minister of Labor, Invalids and Social Affairs, or worked in areas with extremely difficult socio-economic conditions, including the period working in areas with regional allowances coefficient of 0.7 or more before January 1, 2021

+ Aged lower by up to 10 years compared to the retirement age for workers in normal working conditions and with 15 years or more of underground coal mining work according to the Government's regulations

+ Persons infected with HIV/AIDS due to occupational accidents while performing assigned tasks.

[2] For workers in the military, if they leave their job and have at least 15 years or more of compulsory social insurance contributions:

- Includes the following subjects:

+ Officers, professional soldiers of the People's Army; officers, non-commissioned officers of professional and technical skills of the People's Public Security; cryptographic workers paid as for military personnel

+ Non-commissioned officers and soldiers of the People's Army; non-commissioned officers, conscripts of the People's Public Security; military students, police, and cryptography being trained receiving living allowances

+ Permanent militia

- Belongs to one of the following categories:

+ Aged lower by up to 5 years compared to the retirement age for workers in normal working conditions, except as otherwise provided by the Law on Officers of the Vietnam People's Army, Law on People's Public Security, Law on Cryptography, Law on Professional Soldiers, defense workers, and public employees

+ Aged lower by up to 10 years compared to the retirement age for workers in normal working conditions and have a total compulsory social insurance contribution period of 15 years or more when engaged in heavy, hazardous, dangerous, or particularly heavy, hazardous, dangerous occupations or jobs listed by the Minister of Labor, Invalids and Social Affairs, or worked in areas with extremely difficult socio-economic conditions, including the period working in areas with regional allowances coefficient of 0.7 or more before January 1, 2021

+ Persons infected with HIV/AIDS due to occupational accidents while performing assigned tasks.

What are rates of monthly pension according to the Law on Social Insurance in 2024?​ (Image from the Internet)

What are rates of monthly pension according to the Law on Social Insurance in 2024 in Vietnam?

Based on Article 66 of the Social Insurance Law 2024 on the monthly pension benefit rate:

Article 66. Monthly Pension Benefit Rate

1. The monthly pension benefit rate for subjects eligible as prescribed in Article 64 of this Law is calculated as follows:

a) For female workers, 45% of the average monthly salary used as the basis for social insurance contributions as stipulated in Article 72 of this Law corresponds to 15 years of social insurance contributions, then an additional 2% for each subsequent year contributed; the maximum rate is 75%;

b) For male workers, 45% of the average monthly salary used as the basis for social insurance contributions as stipulated in Article 72 of this Law corresponds to 20 years of social insurance contributions, then an additional 2% for each subsequent year contributed; the maximum rate is 75%.

In cases where male workers have a social insurance contribution period from 15 to under 20 years, the monthly pension benefit rate is 40% of the average monthly salary used as the basis for social insurance contributions as stipulated in Article 72 of this Law, corresponding to 15 years of social insurance contributions, then an additional 1% for each subsequent year contributed.

[...]

Thus, the monthly pension benefit rate for employees participating in compulsory social insurance is as follows:

What are grounds for adjustment of pensions in Vietnam?

Based on Article 67 of the Social Insurance Law 2024 on the adjustment of pensions:

Article 67. Adjustment of Pensions

1. Pensions are adjusted based on the increase in the consumer price index in line with the capacity of the state budget and the social insurance fund.

2. Reasonable pension increase adjustments for subjects with low pensions and who retired before 1995 to ensure narrowing the pension gap between retirees of different periods.

3. The Government of Vietnam prescribes the timing, subjects, and adjustment rate of pensions as stipulated in this Article.

According to the above provision, pensions are adjusted based on the increase in the consumer price index in line with the capacity of the state budget and the social insurance fund.