Conditions and Pension Benefit Levels Applied in 2018 in Vietnam

18:02, 10/07/2024

From the 16th year onward of participating in compulsory social insurance in Vietnam, for each additional year of social insurance contribution, female employees shall receive an additional 2% of their pension, which is a 1% reduction compared to the previous regulation. Additionally, the number of years male employees need to contribute to social insurance to qualify for pension will increase annually. For specific conditions and pension benefits for each subject, individuals can refer to the comprehensive summary below.

1. Conditions for Receiving Pension in Normal Cases in Vietnam

No.	Subject	Conditions for Receiving Pension
		Age		Social Insurance Contribution Period	Other Conditions
		Male	Female	Social Insurance Contribution Period	Other Conditions
1	Workers stipulated in Points a, b, c, d, g, h, i Clause 1 Article 2 of the Social Insurance Law 2014	60 years old	55 years old	20 years of SI contributions
		From 55 to 60 years old	From 50 to 55 years old	20 years of SI contributions	15 years of working in heavy, hazardous, dangerous or particularly heavy, hazardous, dangerous jobs or in areas with a regional allowance coefficient of 0.7 or higher, as stipulated by the Ministry of Labor, Invalids and Social Affairs (MOLISA) and the Ministry of Health.
		From 50 to 55 years old		20 years of SI contributions, including 15 years working in underground coal mining
				20 years of SI contributions	HIV/AIDS infection due to occupational accidents
2	Workers specified in Points d and e, Clause 1, Article 2 of the Social Insurance Law 2014	55 years old	50 years old	20 years of SI contributions
		From 50 to 55 years old	From 45 to 50 years old		15 years of working in heavy, hazardous, dangerous or particularly heavy, hazardous, dangerous jobs or in areas with a regional allowance coefficient of 0.7 or higher, as stipulated by MOLISA and the Ministry of Health
					HIV/AIDS infection due to occupational accidents
3	Female workers who are full-time or part-time officials at the commune, ward, or commune-level town		55 years old	From 15 to under 20 years

2. Conditions for Receiving Pension in Case of Reduced Working Ability in Vietnam

Age of SI Participants		Social Insurance Contribution Period	Other Conditions
Male	Female	Social Insurance Contribution Period	Other Conditions
53 years old	48 years old	20 years of SI contributions or more	Reduction in working ability by 61% or more
50 years old	45 years old	Reduction in working ability by 81% or more
		Reduction in working ability by 61% or more and 15 years or more in particularly heavy, hazardous, dangerous jobs as stipulated by MOLISA, the Ministry of Health

3. Monthly Pension Benefit Calculation in Vietnam

Formula for calculating monthly pension benefit

Monthly Pension Benefit = Pension Rate x Average Monthly Salary for SI Contributions

Pension Rate

Pension Rate	Corresponding to the Number of Years of SI Contributions		Increase Rate for Each Additional Year of SI Contributions	Notes
Pension Rate	Male	Female		Notes
45%	16 years if retiring in 2018	15 years if retiring from 2018 onward	2% increase for each year	- The pension rate decreases by 2% for each year of early retirement. - For cases where retirement age includes a fraction of up to 06 months, the rate decrease is 1%; over 06 months is not reduced. - For cases of fractional months of SI contributions, 01 to 06 months is counted as half a year; 07 to 11 months is counted as one year.
	17 years if retiring in 2019
	18 years if retiring in 2020
	19 years if retiring in 2021
	20 years if retiring in 2022

Average Monthly Salary for SI Contributions

Workers under state-regulated salary policies		Workers under employer-regulated salary policies
SI Participation Commencement Time	Average Salary Calculation Period	Average Salary Calculation Period
Before January 01, 1995	Last 5 years before retirement	Entire contribution period
From January 01, 1995 to December 31, 2000	Last 6 years before retirement
From January 01, 2001 to December 31, 2006	Last 8 years before retirement
From January 01, 2007 to December 31, 2015	Last 10 years before retirement
From January 01, 2016 to December 31, 2019	Last 15 years before retirement
From January 01, 2020 to December 31, 2024	Last 20 years before retirement
From January 01, 2025 onward	Entire contribution period
Workers with contribution periods under both state-regulated and employer-regulated salary policies will have the average monthly salary for SI contributions calculated based on the overall periods. For periods under state-regulated salary policies, the average monthly salary will be calculated as specified above.

Legal Basis:

- Social Insurance Law 2014;

- Decree 115/2015/ND-CP;

- Circular 59/2015/TT-BLDTBXH.

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- The legal regulations in this article are according to Vietnamese Law;
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