Pension is an important policy aimed at ensuring income for workers who have reached retirement age in order to stabilize their lives. In the case where a worker has reached the retirement age but has not yet accumulated the required number of years of Social Insurance contributions, how can they receive a retirement pension?
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How to receive a pension upon reaching retirement age for case not have sufficient years of social insurance contributions in Vietnam? (Illustration)
According to the provisions of the 2019 Labor Code and the 2014 Social Insurance Law, employees retiring in Vietnam are entitled to a pension if they meet the following two conditions:
(1) Reach the retirement age as specified in Article 169 of the 2019 Labor Code:
The retirement age of employees in normal working conditions is adjusted according to a roadmap until reaching 62 years old for male workers by 2028 and 60 years old for female workers by 2035.
From 2021, the retirement age of employees in normal working conditions is:
- 60 years and 03 months for male workers; and- 55 years and 04 months for female workers.
After that, it increases by 03 months annually for male workers and 04 months annually for female workers.
(2) Employees subject to compulsory social insurance must have at least 20 years of social insurance contributions as stipulated in Article 54 of the 2014 Social Insurance Law.
Thus, employees wishing to receive a pension must meet two minimum conditions: one is reaching the retirement age, and the other is having sufficient social insurance contribution time.
So, what should be done in the case of employees who have reached the retirement age but do not have enough years of social insurance contributions in Vietnam?
To make up for the missing social insurance contribution time, employees can choose to participate in voluntary social insurance in Vietnam. The participation in voluntary social insurance is guided by Decree 134/2015/ND-CP as follows:
Participants in voluntary social insurance can choose one of the following payment methods to contribute to the pension and death fund:
- Monthly contributions;- Quarterly contributions (every 03 months);- Semi-annual contributions (every 06 months);- Annual contributions (every 12 months);- Lump-sum contributions for many years in advance but not exceeding 5 years each time;- Lump-sum contributions for the remaining years for participants who have met the age condition for a pension but are missing no more than 10 years (120 months) of social insurance contributions to make up 20 years to receive a pension.
In cases where participants have reached the retirement age as per the regulations but are missing more than 10 years of social insurance contributions, if they wish, they can continue to make voluntary social insurance contributions according to one of the above-mentioned methods until the missing contribution time is no more than 10 years, then they can make a lump sum contribution for the missing years to receive a pension.
In summary, in cases where employees have reached the retirement age but lack social insurance contribution years, the solutions are as follows:
- In cases where the missing social insurance contribution years are no more than 10 years: Make a lump-sum voluntary social insurance contribution for the missing years to reach 20 years and receive a pension.
- In cases where the missing social insurance contribution years are more than 10 years: Continue to make voluntary social insurance contributions until the missing contribution time is no more than 10 years, then make a lump-sum contribution for the missing years to receive a pension.
Example: Ms. A will be 55 years and 04 months old by February 2021 (has reached the retirement age) but has only contributed 7 years of social insurance (missing 13 years of social insurance contributions). If Ms. A wishes to receive a pension, she can choose to continue voluntary social insurance contributions in one of the following methods: monthly, quarterly, semi-annually, annually, or a lump-sum contribution for many years in advance but not exceeding 5 years each time, until the missing contribution time is no more than 10 years, then she can make a lump-sum contribution for the missing years to receive a pension.
Above are all the consultations of Lawnet on the solution for employees to receive a pension when reaching retirement age but not having enough years of social insurance contributions in Vietnam.
Thuy Tram
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