Hanoi-Vietnam: Method for calculating pension in 2018

1. Monthly Pension Rate in Vietnam:

a) For females: = 45% (equivalent to the first 15 years of social insurance contributions) + 2% x Remaining Years of Social Insurance Contributions

b) For males: = 45% (equivalent to the first 16 years of social insurance contributions) + 2% x Remaining Years of Social Insurance Contributions

Note:

- The maximum monthly pension rate is 75%

- For periods including odd months: from 01 to 06 months are counted as half a year; from 07 to 11 months are counted as one full year.

2. Average monthly salary serving as the basis for social insurance premium payment:

For employees who have had all social insurance contributions based on state-prescribed salary policies:

- Started participating in social insurance before January 1, 1995, the average monthly salary serving as the basis for social insurance premium payment of the last 5 years before retirement;

-  Started participating in social insurance from January 1, 1995 to December 31, 2000, the average monthly salary serving as the basis for social insurance premium payment of the last 6 years before retirement is applied;

-  Started participating in social insurance from January 1, 2001 to December 31, 2006, the average monthly salary serving as the basis for social insurance premium payment for the last 8 years before retirement is applied;

- Started participating in social insurance from January 1, 2007 to December 31, 2015, the average monthly salary serving as the basis for social insurance premium payment for the last 10 years before retirement is applied;

- Started participating in social insurance from January 1, 2016 to December 31, 2019, the average monthly salary serving as the basis for social insurance premium payment for the last 15 years before retirement is applied;

- Started participating in social insurance from January 1, 2020 to December 31, 2024, the average monthly salary serving as the basis for social insurance premium payment for the last 20 years before retirement is applied;

- Started participating in social insurance from January 1, 2025 onward, the average monthly salary serving as the basis for social insurance premium payment for the entire period is applied.

For employees who have had the entire period of social insurance premium payment based on salary policies decided by the employer, the average monthly salary serving as the basis for social insurance premium payment for the entire period is calculated.

Detailed calculation method of the average monthly salary may be found in Article 20 Circular 59/2015/TT-BLDTBXH.

From July 1, 2018, the pension is increased by 6.92% compared to the pension of June 2018. To be specific:

The persons  eligible for the increased pension include:

- Officials, workers, public employees, and employees (including those who participated in voluntary social insurance, retirees transferring from the Nghe An agricultural social insurance fund according to Decision 41/2009/QD-TTg); servicemen, public security officers, and those performing confidential work receiving a monthly pension before July 1, 2018.

- Commune, ward, and town-level officials prescribed in Decree 92/2009/ND-CP, Decree 121/2003/ND-CP, and Decree 09/1998/ND-CP who are receiving a pension or allowance before July 1, 2018.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE