Vietnam: Notable contents on retirement age from January 01, 2021

Vietnam: Notable contents on retirement age from January 01, 2021 - Illustrative photo

Under Article 7 of the Draft Decree stipulating the retirement age and eligibility requirements for the enjoyment of pension in Vietnam, there are notable contents on retirement age. To be specific:

- Employees who receive a pension before January 1, 2021, will still follow the eligibility requirements for the enjoyment of pension prescribed in Article 54 and Article 55 of the Law on Social Insurance.

Employees who receive a pension from January 1, 2021 onwards will follow the eligibility requirements for the enjoyment of pension as prescribed in Clause 1, Article 219 of the Labor Code and the provisions of this Decree. Those who reach retirement age in December 2020 and receive a pension from January 1, 2021 will still follow the eligibility requirements for the enjoyment of pension prescribed in Article 54 and Article 55 of the Law on Social Insurance.

- From January 1, 2021, the regulations on pension associated with the age requirements for the enjoyment of pension according to Articles 54, 55, Clause 1, Article 73 of the Law on Social Insurance will follow the retirement age and eligibility requirements for the enjoyment of pension stipulated in Article 169, Clause 1, Article 219 of the Labor Code and the provisions of this Decree.

- The age for calculation of years of early retirement to serve as the basis for calculating reduction of pensions as prescribed in Clause 3, Article 56 of the Law on Social Insurance is determined as follows:

- For employees under ordinary working conditions, the standard age specified in point a clause 1 Article 54 of the Law on Social Insurance, amended in point a clause 1 Article 219 of the Labor Code and Article 4 of this Decree, shall prevail.;

- For employees doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations; working in highly disadvantaged areas with the region-based allowance of at least 0.7 (allowance for those working in disadvantaged areas) before January 1, 2021, the standard age specified in point b clause 1 Article 54 of the Law on Social Insurance, amended in point a clause 1 Article 219 of the Labor Code and Article 4 of this Decree, shall prevail.

- For those who have worked in coal mines as prescribed in Appendix III hereto appended, the standard age shall be 10 years younger than the age specified in point a clause 1 Article 54 of the Law on Social Insurance, amended in point a clause 1 Article 219 of the Labor Code and Article 4 of this Decree.

More details may be found in the Draft Decree on the retirement age, expected to take effect from January 1, 2021.

Le Vy

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