I have heard that if an employee retires before the prescribed retirement age, their pension rate will be reduced compared to retiring at the proper age. Are there any exceptions where an individual can retire before the prescribed age and still receive the full pension rate? Ms. Ho Thi Hoa Lai from Thanh Hoa has sent this question to Thu Ky Luat for assistance.
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Policy for Early Retirement in 2020
Regarding this matter, the editorial board of THU KY LUAT provides the following explanation:
According to current regulations, employees who have contributed to social insurance for 20 years or more can retire at the age of 60 for men and 55 for women. In cases where employees retire before the stipulated age, their pension will be deducted by 2% for each year of early retirement. However, the law stipulates certain cases in which employees, including officials and public employees, will not have their pensions deducted when retiring early. Specifically, these are the following cases:
1. Men aged 55 to 60, women aged 50 to 55, with 15 years of work in heavy, hazardous, dangerous, or especially heavy, hazardous, and dangerous jobs listed by the Ministry of Labor - Invalids and Social Affairs and the Ministry of Health; or those with 15 years of work in areas entitled to a regional allowance with a coefficient of 0.7 or more.
2. Employees aged 50 to 55, with over 20 years of social insurance contributions, including 15 years of coal mining work in underground mines.
3. Individuals infected with HIV/AIDS due to occupational accidents.
4. Officials and public employees subject to downsizing, if aged 50 to under 55 for men, and 45 to under 50 for women, with over 20 years of social insurance contributions, including 15 years of work in heavy, hazardous, dangerous jobs listed by the Ministry of Labor - Invalids and Social Affairs and the Ministry of Health; or 15 years of work in areas entitled to a regional allowance with a coefficient of 0.7 or more.
5. Officials and public employees subject to downsizing, if aged 55 to under 60 for men, and 50 to under 55 for women, with over 20 years of social insurance contributions.
The date used as the basis for calculating the retirement age to enjoy early retirement policies is the 1st day of the month following the birth month; if the birth date and month are not specified in the documents, the date shall be January 1 of the birth year.
Note: From 2021, the conditions for employees to enjoy pensions will be tightened. Specifically, according to Point a, Clause 1, Article 219 of the Labor Code 2019, amending Article 54 of the Social Insurance Law 2014, from 2021, employees must have 20 years of social insurance contributions; men must be 60 years and 3 months old; women must be 55 years and 4 months old (then increasing by 3 months per year for men and 4 months per year for women until 2028, when men retire at 62 and in 2035, women retire at 60). The conditions for employees to retire early from 2021 will also be tightened accordingly.
Nguyen Trinh
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