Hanoi-Vietnam: All regulations on early retirement in 2019 to be kept in mind by officials, public employees, and employees

1. Cases of early retirement

Case 1: Employees specified in points a, b, c, d, g, h, and i, clause 1, Article 2 of the Social Insurance Law 2014, when resigning with at least 20 years of social insurance premium payment, including:

- employees with a reduced ability to work from 61% - 80% and meeting the following age conditions:

- Employees with a reduced ability to work from 81% or more and males aged 50 and females aged 45.

- Employees with a reduced ability to work from 61% or more and having at least 15 years or more working in heavy, toxic, or dangerous jobs or occupations.

- Males aged from 55 to 60, females aged from 50 to 55, and having at least 15 years doing heavy, toxic, or dangerous jobs or occupations, or special heavy, toxic, or dangerous jobs under the list issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or having at least 15 years working in areas with a regional allowance coefficient of 0.7 or more.

- Employees aged from 50 to 55 and having at least 20 years of social insurance premium payment, including at least 15 years of working in underground coal mining.

- Employees infected with HIV/AIDS due to occupational accidents.

Case 2: Employees specified in points dd and e, clause 1, Article 2 of the Social Insurance Law 2014, when quitting work with at least 20 years of social insurance premium payment:

- Males aged 55 and females aged 50, except for cases specified in the Law on Vietnamese People's Army Officers, the Law on People's Public Security, and the Law on Cipher.

- Males aged from 50 to 55 and females aged from 45 to 50, having at least 15 years doing heavy, toxic, or dangerous jobs or occupations, or special heavy, toxic or dangerous jobs under the list issued by MoLISA and MoH, or having at least 15 years working in areas with a regional allowance coefficient of 0.7 or more.

- Employees infected with HIV/AIDS due to occupational accidents.

- Employees with a reduced ability to work from 61% or more in one of the following cases:

- Males aged 50 and females aged 45 or more;- Having at least 15 years or more doing special heavy, toxic, or dangerous jobs under the list issued by MoLISA and MoH.

Case 3: Officials and public employees retiring early in accordance with policies on downsizing specified in Article 6 of Decree 108/2014/ND-CP amended and supplemented by Decree 113/2018/ND-CP:

- Males aged 50 to 53 and females aged 45 to 48, having at least 20 years of social insurance premium payment, including at least 15 years doing heavy, toxic, or dangerous jobs or having at least 15 years working in areas with a regional allowance coefficient of 0.7 or more.

- Males above 53 up to under 55, females above 48 up to under 50, having at least 20 years of social insurance premium payment, including at least 15 years doing heavy, toxic, or dangerous jobs or having at least 15 years working in areas with a regional allowance coefficient of 0.7 or more.

- Males aged 55 to 58, females aged 50 to 53, having at least 20 years of social insurance premium payment.

- Males above 58 up to under 60, females above 53 up to under 55, having at least 20 years of social insurance premium payment.

2. Policies for early retirement

Case 1: Individuals eligible for early retirement as per Clause 1, Article 2, when meeting conditions specified in Articles 54 and 55 of the Social Insurance Law 2014

* Entitled to monthly pension

Monthly pension = Pension rate x Average salary for social insurance premium payment

- The monthly pension rate for laborers who are eligible for pension as per Article 54 of the Social Insurance Law is determined as follows:

- Laborers retiring from January 01, 2016, to before January 01, 2018: The monthly pension rate is 75% for those working from 16 years (for males starting in 2018) to 20 years (for males starting from 2022), with each extra year of social insurance contributing 2% for males and 3% for females. The maximum rate is 75%;

- Female laborers retiring from January 01, 2018 onwards: The monthly pension rate is 45% corresponding to 15 years of social insurance premium payment, with each additional year of social insurance contributing 2%; the maximum rate is 75%.

- Monthly pension for those eligible as per Article 55 of the Social Insurance Law is calculated similarly. For each year of early retirement, decrease the pension rate by 2%. For fractional years up to 6 months, a decrease of 1%; for more than 6 months, no decrease.

- Monthly pension for female laborers eligible as per Clause 3, Article 54 of the Social Insurance Law is calculated by the number of years of social insurance premium payment.

- The minimum monthly pension for participants in compulsory social insurance meeting the conditions of Articles 54 and 55 of the Social Insurance Law is the statutory pay rate, except for the case specified in point i, clause 1, Article 2, and clause 3, Article 54 of the Social Insurance Law.

* Entitled to a one-time pension allowance:

For those with more than the required number of years for a 75% pension rate when retiring, apart from the pension, they are entitled to a one-time pension allowance.

One-time pension allowance = Number of years exceeding the number of years corresponding to the 75% pension rate x 0.5 month of average monthly salary as the basis for social insurance premium payment.

* Entitled to lump-sum social insurance payout

employees specified in Clause 1, Article 2 of the Social Insurance Law 2014, upon request, can receive lump-sum social insurance payout in one of the following cases:

- Reaching retirement age as per Clauses 1, 2, and 4, Article 54 of the Social Insurance Law without having sufficient years of social insurance premium payment or as per Clause 3, Article 54 without having 15 years of social insurance premium payment and not continuing voluntary social insurance;- After one year of quitting, having not enough 20 years of social insurance, not continuing contributions;- Settling abroad;- Suffering from life-threatening diseases as cancer, poliomyelitis, cirrhosis with ascites, leprosy, severe tuberculosis, HIV/AIDS entering the final stage, and other diseases as regulated by the Ministry of Health.

lump-sum social insurance payout = Number of years of social insurance premium payment x

- 1.5 months of average monthly salary for years before 2014;

- 2 months of average monthly salary for years from 2014onwards;- If total insurance contribution is less than a year, the amount is equal to that contributed, but not exceeding 2 months of average monthly salary.

Case 2: For early retirees eligible for downsizing policies as per Article 6 of Decree 108/2014/ND-CP (amended and supplemented by Decree 113/2018/ND-CP).

- Males aged 50 to 53, females aged 45 to 48, having at least 20 years of social insurance premium payment, including at least 15 years working in heavy, toxic, or dangerous jobs or in areas with a regional allowance coefficient of 0.7 or more:

- No reduction in pension rate due to early retirement;- Receiving an allowance of 3 months' salary for each year of early retirement compared to the minimum age;- Receiving an allowance of 5 months' salary for the first 20 working years, each additional year with contributions receiving an allowance of 0.5 months' salary.

- Males above 53 up to under 55, females above 48 up to under 50, having at least 20 years of contributions, including 15 years working in heavy, toxic, or dangerous jobs or in areas with a regional allowance coefficient of 0.7 or more will receive a pension as per social insurance laws and no reduction in pension rate for early retirement.

- Males aged 55 to 58, and females aged 50 to 53, having at least 20 years of contributions will receive a pension as per social insurance laws and policies as per point a, c, clause 1, Article 8, Decree 108/2014/ND-CP, and an allowance of 3 months' salary for each year of early retirement.

- Males above 58 up to under 60, females above 53 and under 55, having at least 20 years of contributions will receive a pension as per social insurance laws and no reduction in pension rate for early retirement.

3. Regulations on early retirement benefits under Downsizing Policies

* Salary as the basis for calculating benefits

Salary as the basis for calculating benefits includes: salary based on grade, step, or professional title, salary as per the payroll; allowances for position, seniority exceeding the frame, professional seniority (if any), and retention difference (if any) as per legal regulations.

Note:

- The monthly salary for calculating allowances under Article 8; point b, clause 1, Article 9; point b, clause 1, point d, clause 2, Article 10 of Decree 108/2014/ND-CP is the average actual monthly salary of the last 5 years (60 months) before downsizing.

- For those with less than 5 years of service, the average actual monthly salary of the whole working period is taken.

* Time for calculating benefits

This includes working time in CPV, state agencies, political-social organizations, public service providers, state-owned enterprises, and associations, which are eligible for compulsory social insurance premium payment (as shown in each person's social insurance book), but have not yet received severance allowance or lump-sum social insurance payout benefits or demobilized or discharged policies.

* Time for applying calculate the age to enjoy early retirement benefits

The application date for determining the age to enjoy retirement benefits is the first day of the month following the subject's birth month; if the record does not specify the birth month, January 1 of the subject's birth year is taken.

If the time for calculating benefits includes odd months, it is rounded: under 3 months are not counted; from 3 to 6 months counts as 1/2 year; over 6 months counts as a full year.

Legal Basis:

♦ Social Insurance Law 2014;

♦ Decree 108/2014/ND-CP;

♦ Decree 113/2018/ND-CP.

- Nguyen Trinh -

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