What is the monthly pension for employees participating in compulsory social insurance in Vietnam?

What is the monthly pension for employees participating in compulsory social insurance in Vietnam?

Pursuant to Article 56 of the Law on Social Insurance in 2014 stipulating 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%.

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As regulations above, the monthly pension for employees participating in compulsory social insurance in Vietnam is as follows:

(1) From January 1, 2016 to January 1, 2018

- The monthly pension of employees who fully satisfy the conditions must equal 45% of the average monthly salary on which social insurance premiums are based, corresponding to 15 years of social insurance premium payment.

- The monthly pension 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, and correspond to the following period of social insurance premium payment:

- For male employees:

+ who retire in 2018 is 16 years;

+ who retire in 2019 is 17 years;

+ who retire in 2020 is 18 years;

+ who retire in 2021 is 19 years;

+ who retire in 2022 is 20 years;

- For female employees who retire since 2018, it is 15 years

Note: The pension rate shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%.

(3) For employees who enjoy pension when suffering working capacity decrease

- The monthly pension of the employees who enjoy pension when suffering working capacity decrease is calculated as above;

- After that, the monthly pension shall be reduced by 2% for each year of early retirement.

(4) For part-time female staffs in communes, wards and townships

- Female workers, whether working full-time or part-time at the commune, ward, or town level, who participate in social insurance and meet the requirements of having at least 15 years of social insurance contributions and reaching the age of 55, are entitled to receive a pension.

- The pension amount is calculated at 45% of the average monthly salary used for social insurance contributions when the worker has completed 15 years of social insurance contributions.

- For each additional year of social insurance contributions between 16 and less than 20 years, the pension amount increases by 2%.

What is the monthly pension for employees participating in compulsory social insurance in Vietnam? - image from internet

What are forms of receiving pensions in Vietnam?

Pursuant to Clause 3 Article 18 of the Law on Social Insurance in 2014 stipulating forms of receiving pensions in Vietnam as follows:

Rights of employees

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3. To fully and promptly receive pensions and social insurance allowances in one of the following forms:

a/ Directly from social insurance agencies or service organizations authorized by social insurance agencies;

b/ Via their deposit accounts opened at banks;

c/ Through employers.

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As regulations above, employees may receive pensions via following forms:

- Directly from social insurance agencies or service organizations authorized by social insurance agencies;

- Via their deposit accounts opened at banks;

- Through employers.

What is the retirement age in Vietnam in 2024?

Pursuant to Article 4 of the Decree 135/2020/ND-CP stipulating retirement age as follows:

Retirement age under ordinary working conditions

Retirement ages of employees under ordinary working conditions as prescribed in clause 2 Article 169 of the Labor Code are specified as follows:

1. Since January 1, 2021, the retirement age of employees under ordinary working conditions are 60 years 3 months for male employees and 55 years 4 months for female employees; and the age increases by 3 months for male employees each successive year until he reaches 62 in 2028 and increases by 4 months for female employees each successive year until she reaches 60 in 2035.

2. The roadmap to adjust the retirement ages of employees specified in clause 1 shall be done as follows:

In 2024, retirement ages of employees under ordinary working conditions are 60 years 3 months for male employees and 55 years 4 months for female employees.

Best regards!