What documents are included in early pension enjoyment application in Vietnam?

Who will be eligible for early retirement in Vietnam?

Pursuant to Clause 3, Article 169 of the 2019 Labor Code, the retirement age is stipulated as follows:

Retired Age

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3. The retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

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According to this Article, the following subjects will be eligible for early retirement, including:

[1] Employees with reduced working ability;

[2] Employees performing particularly heavy, toxic or dangerous occupations or jobs;

[3] Employees doing heavy, hazardous or dangerous occupations and jobs;

[4] Employees working in areas with particularly difficult socio-economic conditions

What documents are included in early pension enjoyment application in Vietnam? (Image from the Internet)

What documents are included in early pension enjoyment application in Vietnam?

Pursuant to Article 108 of the 2014 Law on Social Insurance, regulations on dossier for pension enjoyment are as follows:

Dossier for pension enjoyment

1. A dossier for pension enjoyment for employees covered by compulsory social insurance must comprise:

a/ The social insurance book;

b/ The decision permitting an employee to stop working under the retirement benefits or the document terminating a labor contract with an employee for enjoying the retirement benefits;

c/ The written record of assessment of the working capacity decrease, made by the Medical Assessment Council, for employees who retire under Article 55 of this Law, or the certificate of HIV/AIDS infection due to occupational risks, for the employees defined in Article 54 of this Law.

2. A dossier for pension enjoyment for employees covered by voluntary social insurance or employees having their period of social insurance premium payment reserved, including those who are serving imprisonment sentences, must comprise:

a/ The social insurance book;

b/ The application for pension enjoyment;

c/ The written authorization for carrying out procedures for settlement of the retirement benefits and enjoyment of pension, for those who are serving imprisonment sentences;

d/ A competent state agency’s document permitting an illegal emigrant to legally repatriate and settle in the country;

dd/ The court’s legally effective decision annulling the decision on declaration to be missing, for missing people who reappear.

Thus, according to the above regulations in Vietnam, the 2024 early pension enjoyment application includes the following documents:

- Social insurance book;

- Decision to quit to enjoy retirement benefits or document terminating the labor contract to enjoy retirement benefits;

- Minutes of assessment of reduced working capacity by the Medical Examination Council.

What is retirement of employees before pensionable age?

When an employee retires before age and has paid the full number of years of insurance according to Article 55 of the 2014 Law on Social Insurance, he or she will receive a pension according to regulations.

According to Clause 1, Article 7, Decree 115/2015/ND-CP stipulates the monthly pension level as follows:

Monthly pension level

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.

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At the same time, Article 56 of the 2014 Law on Social Insurance stipulates the monthly pension as follows:

Monthly pension

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.

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According to this Article, when employees retire early and have paid full years of social insurance in Vietnam, they will receive a pension calculated according to the following formula:

Monthly pension = 45% x Average monthly salary paid for social insurance

For each year of retirement before the prescribed age, the reduction is 2%.

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