The Labor Code 2019, which has just been passed, officially takes effect on January 1, 2021, with many notable new provisions, particularly the regulations regarding the eligibility conditions for employee pensions in Vietnam.
Article table of contents
Illustrative Photo
Firstly, Article 169 of the Labor Code 2019 has adjusted the retirement age of employees as follows:
“Article 169. Retirement Age
1. Employees who meet social insurance contribution conditions according to the provisions of the law on social insurance are entitled to a pension upon reaching the retirement age.
2. The retirement age of employees working under normal conditions will be adjusted gradually to reach 62 years for male employees by 2028 and 60 years for female employees by 2035.
From 2021, the retirement age for employees working under normal conditions will be 60 years and 03 months for male employees and 55 years and 04 months for female employees; thereafter, each year the retirement age will increase by 03 months for male employees and 04 months for female employees.
3. Employees who have reduced working capacity; perform especially heavy, hazardous, dangerous jobs; perform heavy, hazardous, dangerous jobs; work in areas with particularly difficult socio-economic conditions may retire at an age lower but not more than 05 years compared to the regulation in Clause 2 of this Article at the time of retirement, except where otherwise provided by law.
4. Employees with high professional and technical qualifications and some special cases may retire at an age higher but not more than 05 years compared to the regulation in Clause 2 of this Article at the time of retirement, except where otherwise provided by law.”
This change in the retirement age also leads to changes in the conditions for employees to be entitled to a pension. Specifically, Clause 1, Article 219 of the Labor Code 2019 has amended the conditions for pension entitlement in the Social Insurance Law 2014 by no longer specifying it as a concrete number, such as 60 years for men and 55 years for women under normal conditions. From January 1, 2021, the retirement age for employees will increase annually according to the regulation in Article 169 of the Labor Code 2019.
The conditions for employees to be entitled to a pension upon retirement in 2021 in Vietnam are summarized as follows:
Case 1: Retirement at the age of retirement with a social insurance participation period of 20 years or more in Vietnam (Point a, Clause 1, Article 219 of the Labor Code 2019)
| No. | Case | Age (from) | Note | |
|---|---|---|---|---|
| Male | Female | |||
| 1 | Normal working conditions | 60 years 03 months | 55 years 04 months | |
| 1 | Performing heavy, hazardous, dangerous work or working in areas with socio-economic coefficients of 0.7 | 55 years 03 months | 50 years 04 months | At least 15 years performing heavy, hazardous, dangerous work or at least 15 years working in areas with coefficients of 0.7 |
| 2 | Coal mining in underground mines | 50 years 03 months | 45 years 03 months | At least 15 years working in underground mines |
| 3 | Contracting HIV due to occupational accident | No regulation | ||
| 4 | Other cases upon reaching the end of working age | 60 years 03 months | 55 years 04 months | |
- For officers, professional soldiers of the People's Army; officers, non-commissioned officers with technical expertise in the People's Public Security; persons working in cipher organizations entitled to salaries like military personnel; non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Public Security serving with a definite term; students of the military, police, and cipher organizations entitled to stipends, with at least 20 years of social insurance contributions in Vietnam:
| No. | Case | Age (from) | Note | |
|---|---|---|---|---|
| Male | Female | |||
| 1 | Performing heavy, hazardous, dangerous work, or in areas with a regional allowance factor of 0.7 | 50 years 03 months | 45 years 04 months | At least 15 years performing heavy, hazardous, dangerous work or at least 15 years working in areas with regional allowance factor of 0.7 |
| 2 | Other cases | 55 years 03 months | 50 years 04 months | |
- For female laborers who are commune-level officials or part-time workers in communes, wards, commune-level towns:
+ From 15 years to under 20 years of social insurance contributions;
+ From 55 years 04 months onwards.
Case 2: Retirement due to reduced working capacity with 20 years of social insurance contributions in Vietnam (Point b, Clause 2, Article 219 of the Labor Code 2019)
|
No. |
Case of reduced capacity |
Age |
Note |
|
|
Male |
Female
|
|||
|
1 |
From 61% to under 81% |
55 years 03 months |
50 years 04 months |
|
|
2 |
81% or more |
50 years 03 months |
45 years 04 months |
|
|
3 |
61% or more, performing heavy, hazardous, dangerous work |
No age regulation |
At least 15 years performing heavy, hazardous, dangerous work |
|
- For officers, professional soldiers of the People's Army; officers, non-commissioned officers with technical expertise in the People's Public Security; persons working in cipher organizations entitled to salaries like military personnel; non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Public Security serving with a definite term; students of the military, police, and cipher organizations entitled to stipends, with at least 20 years of social insurance contributions in Vietnam:
|
No. |
Case of reduced capacity |
Age |
Note |
|
|
Male |
Female |
|||
|
1 |
61% or more |
50 years 03 months |
45 years 04 months |
|
|
2 |
61% or more, performing heavy, hazardous, dangerous work |
No regulation |
At least 15 years performing heavy, hazardous, dangerous work |
|
From 2021 onwards, after each year, the retirement age in the cases will increase by 03 months for male and 04 months for female until reaching 62 years for male employees by 2028 and 60 years for female employees by 2035.
Lan Anh
- Key word:
- pension
- employee
- Vietnam
- retirement
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