Policies and Benefits for Early Retirement in 2018 in Vietnam

I. Entities in Vietnam who are eligible for early retirement under Clause 1, Article 2 when they meet conditions specified in Article 54 and Article 55 of the Law on Social Insurance 2014

Entitled to monthly pension

Monthly pension = Pension rate x Average monthly salary for social insurance contribution

- The monthly pension rate for employees eligible for pension as prescribed in Article 54 of the Law on Social Insurance is determined as follows:

• Employees retiring from January 1, 2016, to before January 1, 2018: The monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contribution. Thereafter, for each additional year of social insurance contribution, the rate is increased by 2% for men and 3% for women; the maximum rate is 75%;
• Female employees retiring from January 1, 2018, onward: The monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contribution. Thereafter, for each additional year of social insurance contribution, the rate is increased by 2%; the maximum rate is 75%;
• Male employees retiring from January 1, 2018, onward: The monthly pension rate is calculated at 45% corresponding to the number of social insurance contribution years as shown in the table below. Thereafter, for each additional year of social insurance contribution, the rate is increased by 2%; the maximum rate is 75%.

- The monthly pension for employees who meet the conditions specified in Article 55 of the Law on Social Insurance is calculated as above. Thereafter, for each year of early retirement, the rate is reduced by 2%. If the retirement age has a fractional period up to 06 months, the rate is reduced by 1%; over 06 months, the percentage for early retirement is not reduced.

- The minimum monthly pension for female employees who qualify for a pension as specified in Clause 3, Article 54 of the Law on Social Insurance is based on the number of years of social insurance contribution.

- The minimum monthly pension for employees participating in compulsory social insurance who meet the conditions for pension as specified in Article 54 and Article 55 of the Law on Social Insurance is equal to the statutory pay rate, except for the case specified at Point i, Clause 1, Article 2, and Clause 3, Article 54, of the Law on Social Insurance.

Entitled to a one-time allowance upon retirement:

• Employees with social insurance contribution duration exceeding the number of years corresponding to the 75% pension rate will be entitled to a one-time allowance in addition to the pension upon retirement.
• The one-time allowance is calculated based on the number of years of social insurance contribution exceeding the number of years corresponding to the 75% pension rate. For each additional year of social insurance contribution, the one-time allowance is equal to 0.5 months of the average monthly salary for social insurance contribution.

Entitled to a one-time social insurance payout

• Employees who have reached the retirement age as stipulated in Clauses 1, 2, and 4 of Article 54 of the Law on Social Insurance but have not yet accrued 20 years of social insurance contribution or as stipulated in Clause 3 of Article 54 of the Law on Social Insurance but have not yet accrued 15 years of social insurance contribution and do not continue to participate in voluntary social insurance;
• After one year of leaving work without accruing 20 years of social insurance contribution and do not continue to participate in social insurance;
• Settling abroad;
• Persons suffering from life-threatening diseases such as cancer, paralysis, cirrhosis with ascites, leprosy, severe tuberculosis, HIV infection progressing to AIDS, and other diseases as prescribed by the Ministry of Health.

II. Entities in Vietnam who are eligible for early retirement as specified in Article 6 of Decree 108/2014/ND-CP (amended and supplemented by Decree 113/2018/ND-CP)

1. Men aged 50 to 53, and women aged 45 to 48, with at least 20 years of social insurance contribution, including at least 15 years of working in heavy, hazardous, dangerous occupations or working in areas with a regional allowance coefficient of 0.7 or higher.

- Not subject to a pension reduction due to early retirement;

- Entitled to a 3-month salary allowance for each year of early retirement compared to the minimum age requirement;

- Entitled to a 5-month salary allowance for the first 20 years of employment with social insurance contributions. From the 21st year onward, for each year of employment with social insurance contribution, a 1/2 month salary allowance is provided.

2. Men aged 53 to below 55 and women aged 48 to below 50, with at least 20 years of social insurance contribution, including at least 15 years of working in heavy, hazardous, dangerous occupations or working in areas with a regional allowance coefficient of 0.7 or higher, are entitled to a pension according to the provisions of the law on social insurance and not subject to a pension reduction due to early retirement.

3. Men aged 55 to 58 and women aged 50 to 53, with at least 20 years of social insurance contribution, are entitled to a pension according to the provisions of the law on social insurance and policies specified at point a, c, Clause 1, Article 8 of Decree 108/2014/ND-CP, and entitled to a 3-month salary allowance for each year of early retirement.

4. Men aged 58 to below 60 and women aged 53 to below 55, with at least 20 years of social insurance contribution, are entitled to a pension according to the provisions of the law on social insurance and not subject to a pension reduction due to early retirement.

Legal basis:

- Law on Social Insurance 2014

- Decree 115/2015/ND-CP

- Circular 59/2015/TT-BLDTBXH

- Decree 108/2014/ND-CP

- Decree 113/2018/ND-CP

- Thanh Lam -

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