In Vietnam, may retirement age be older? What are the benefits of retiring at an older age?

In Vietnam, may retirement age be older?

Pursuant to Clauses 2 and 4, Article 169 of the Labor Code 2019, the retirement age is as follows:

1. An employee who has paid social insurance for an adequate period of time as prescribed by social insurance laws shall receive retirement pension when he/she reaches the retirement age.

2. Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

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.

4. Retirement ages of skilled employees and employees in certain special cases may be older by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

5. The Government shall elaborate this Article

Pursuant to to Article 6 of Decree 135/2020/ND-CP stipulating late retirement:

Late retirement (after the retirement age under ordinary working conditions) as prescribed in clause 4 Article 169 of the Labor Code is specified as follows:

1. An employee may retire at the age later, upon agreement with the employer to continue in employment, than the retirement age mentioned in Article 4 hereof.

2. The termination of employment contract and settlement of claims for benefits of the employee mentioned in clause 1 shall be done in accordance with Section 3 Chapter III of the Labor Code and regulations on social insurance.

Therefore, employees may be older by up to 05 years than the retirement ages specified. In this case, if you want to retire at the age later, you should agree with your school on this matter.

What are the benefits of retiring at an older age?

Pursuant to Clause 1, Article 148 of the Labor Code 2019 stipulating elderly employees:

1. An elderly employee is a person who continues working after the age stipulated in Clause 2 Article 169 of this Labor Code.

2. Elderly employees are entitled to negotiate with their employer on reduction of reduce their daily working hours or to work on a part-time basis.

3. Employers are encouraged by the State to assign works that are suitable for elderly employees in order to uphold their right to work and ensure efficient utilization of human resources.

Pursuant to Article 149 of the Labor Code 2019 stipulating employment of elderly people:

1. When an elderly person is employed, both parties may agree on conclusion of multiple fixed-term employment contracts.

2. In case a person who is receiving retirement pension under the Law on Social Insurance enters into a new employment contract, he/she shall receive salary and other benefits prescribed by law and the employment contract in addition to the benefits to which they are entitled under the pension scheme.

3. Employer must not assign elderly employees to do laborious, toxic or dangerous works, or highly laborious, toxic or dangerous works that are harmful to their health, unless safety is ensured.

4. Employers are responsible for taking care of the health of elderly employees at the workplace.

Pursuant to Article 75 of the Law on Social Insurance 2014 stipulating lump-sum allowance upon retirement:

1. Employees who have a period of social insurance premium payment longer than the number of years corresponding to the 75% pension rate are entitled to not only pension but also a lump-sum allowance upon retirement.

2. The lump-sum allowance shall be calculated based on the number of years of social insurance premium payment in excess of the number of years corresponding to the 75% pension enjoyment rate, with half of the average monthly income on which social insurance premiums are based for each of these years.

Best regards!