Retiring in 2023, how much is the monthly pension?

Retiring in 2023, how much is the monthly pension in Vietnam? (Internet image) 

Retiring in 2023, how much is the monthly pension in Vietnam?

According to the provisions of the Law on Social Insurance, if an employee has paid social insurance for 20 years, men receive a pension equal to 45% of the monthly salary paid for social insurance, and women receive 55%. The maximum benefit is 75% for both men and women.

In 2023, most cases participating in social insurance (both mandatory and voluntary) will receive pensions when they meet two conditions: 20 years of social insurance payment or more and 60 years and 9 months for men and 56 years old. for women.

Note: In some cases, employees participating in compulsory social insurance who work in toxic environments, difficult areas, suffer from serious diseases, etc. can retire earlier than the age just mentioned.

If you ensure you meet the retirement conditions and the number of years of social insurance payment mentioned above, the employee's monthly pension benefit in 2023 will apply according to Decree 115/2015/ND-CP:

Pension rate = Pension rate x Average salary paid for social insurance

- For male employees who have paid social insurance for 20 years, they will receive 45% of the average monthly salary paid for social insurance. After that, with each year of social insurance payment plus 2%, the maximum benefit level is 75%.

- For female employees who have paid social insurance for 15 years, they will receive 45%. After that, each year, the payment is calculated at an additional 2%; the maximum level is 75%.

In case an employee retires before age due to reduced working ability, according to regulations, the monthly pension rate is calculated as if the person retires at full age; for each year of retirement before the prescribed age, the pension rate is reduced by 2%.

The average monthly salary paid for social insurance to calculate the pension of the group of workers implementing the salary regime prescribed by the State is calculated as the average monthly salary paid for social insurance of the last 5 years before retirement (if participating in social insurance before January 1, 1995);

Last 6 years before retirement (if participating in social insurance from January 1, 1995, to December 31, 2000);

The last 8 years before retirement (if participating in social insurance from January 1, 2001, to December 31, 2006);

Last 10 years before retirement (if participating in social insurance from January 1, 2007 to December 31, 2015);

Last 15 years before retirement (if participating in social insurance from January 1, 2016 to December 31, 2019);

Last 20 years before retirement (if participating in social insurance from January 1, 2020 to December 31, 2024).

If you participate in social insurance from January 1, 2025, onwards, the average monthly salary paid for social insurance for the entire period will be calculated.

Minimum pension level in 2023

Currently, the lowest monthly pension of employees participating in compulsory social insurance who are eligible to receive pension will be equal to the base salary (Clause 5, Article 56 of the Law on Social Insurance,).

Due to the adjustment in the 2023 base salary, the minimum pension benefit will increase from 1,490,000 VND/month to 1,800,000 VND/month from July 1, 2023.

In addition, from July 1, 2023, there will be an increase of 12.5% on pension and social insurance benefits and monthly benefits for those receiving pensions, social insurance benefits, and monthly benefits guaranteed and supported by the state budget.

Those receiving pension, disability allowance, and monthly allowance before January 1, 1995, after adjusting to increase by 12.5% according to the general adjustment level, the benefit level is adjusted to increase by 300,000 VND/person/month for those with benefits of 2.7 million VND/month or less.

At the same time, it increased to 3 million VND for those with benefits from 2.7 - under 3 million VND/month.

Duong Chau Thanh

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