The Vietnam Ministry of Labor, Invalids and Social Affairs is seeking public opinion on the Draft Decree on the adjustment of pensions for female employees receiving pensions from 2018 to 2021.
Article table of contents
Issuance of the Decree is to adjust the balance of pension rates between female employees retiring before and after January 1, 2018. At the same time, it aims to ensure harmony with the roadmap for adjusting the calculation method of pension benefits for males receiving pensions at the same period.
The reason for this adjustment is due to the change in the method of calculating pensions applied from January 1, 2018, under the Law on Social Insurance 2014, which led to a disparity in the pension rates of female employees receiving pensions before January 1, 2018, and female employees receiving pensions from January 1, 2018. To be specific:
- Female employees retiring before January 1, 2018 will have their pensions calculated based on the following rate: Pension rate 45% (corresponding to the first 15 years of social insurance premium payment) + 3% x Remaining years of social insurance premium payment.
- Female employees retiring after January 1, 2018 will have their pensions calculated based on the following rate: Pension rate 45% (corresponding to the first 15 years of social insurance premium payment) + 2% x Remaining years of social insurance premium payment.
Additionally, the change in the method of calculating pensions also led to a comparison between female and male employees applied at the same period. The change in the method of calculating pensions of male employees was applied progressively over 5 years. However, for female employees, the change was applied immediately in 2018.
Adjustment of pensions paid to female employees receiving pensions from 2018 to 2021 under the Draft Decree is regulated as follows:
Female employees receiving pensions pensions from January 1, 2018, will have their pensions increased by an additional amount calculated according to the formula:
Increased amount = Pension x Adjusted rate
- Pension: Calculated according to Clause 2, Article 56, or Clause 2, Article 74 of the Law on Social Insurance 2014;
- Adjusted rate: Corresponding to the period of social insurance premium payment and the specific retirement time as shown in the table below.
|
Period of social insurance premium payment |
Adjusted rate corresponding to the period of social insurance premium payment and the starting time of receiving pensions |
|||
|
2018 |
2019 |
2020 |
2021 |
|
|
20 years |
7,27% |
5,45% |
3,64% |
1,82% |
|
20 years 01 month - 20 years 06 months |
7,86% |
5,89% |
3,93% |
1,96% |
|
20 years 07 months - 21 years |
8,42% |
6,32% |
4,21% |
2,11% |
|
21 years 01 month - 21 years 06 months |
8,97% |
6,72% |
4,48% |
2,24% |
|
21 years 07 months - 22 years |
9,49% |
7,12% |
4,75% |
2,37% |
|
22 years 01 month - 22 years 06 months |
10,00% |
7,50% |
5,00% |
2,50% |
|
22 years 7 months - 23 years |
10,49% |
7,87% |
5,25% |
2,62% |
|
23 years 01 month - 23 years 06 months |
10,97% |
8,23% |
5,48% |
2,74% |
|
23 years 07 months - 24 years |
11,43% |
8,57% |
5,71% |
2,86% |
|
24 years 01 month - 24 years 06 months |
11,88% |
8,91% |
5,94% |
2,97% |
|
24 years 07 months - 25 years |
12,31% |
9,23% |
6,15% |
3,08% |
|
25 years 01 month - 25 years 06 months |
10,91% |
8,18% |
5,45% |
2,73% |
|
25 years 07 months - 26 years |
9,55% |
7,16% |
4,78% |
2,39% |
|
26 years 01 month - 26 years 06 months |
8,24% |
6,18% |
4,12% |
2,06% |
|
26 years 07 months - 27 years |
6,96% |
5,22% |
3,48% |
1,74% |
|
27 years 01 month - 27 years 06 months |
5,71% |
4,29% |
2,86% |
1,43% |
|
27 years 07 months - 28 years |
4,51% |
3,38% |
2,25% |
1,13% |
|
28 years 01 month - 28 years 06 months |
3,33% |
2,50% |
1,67% |
0,83% |
|
28 years 07 months - 29 years |
2,19% |
1,64% |
1,10% |
0,55% |
|
29 years 01 month - 29 years 06 months |
1,08% |
0,81% |
0,54% |
0,27% |
- Female employees subject to pension increase under Decree 88/2018/ND-CP are still eligible for pension increase according to this Draft Decree;
- Female employees, who retired between January 1, 2018, and the date before the pension increase is applied, will be entitled to the increased amount in pension from the month they started receiving the pension to the month immediately preceding the adjustment month.
- The pension after increase as specified in this Draft Decree will be the basis for future adjustments in accordance with Article 57 of the Law on Social Insurance.
More details can be found in Draft Decree on the adjustment of pensions for female employees receiving pensions from 2018 to 2021.
