In the upcoming period, social insurance benefits will continue to be governed by the current Law on Social Insurance; however, the Labor Code 2019, which is set to take effect, will amend some key provisions. Below are the important changes regarding conditions for entitlement to pension benefits as of January 01, 2021.
Article table of contents
Important changes regarding eligibility for retirement pension in Vietnam From January 1, 2021 (Illustrative Image)
For Officials and Public Employees
Regarding Retirement Benefit Conditions
According to Article 54 of the Law on Social Insurance, as amended and supplemented by Article 219 of the 2019 Labor Code, employees, officials, and public employees participating in mandatory social insurance (BHXH) are entitled to a pension if they have at least 20 years of social insurance contribution and fall into one of the following cases:
- Male aged 60 years and 03 months; female aged 55 years and 04 months (previously 60 years for men; 55 years for female). Thereafter, each year increases by 03 months for men and 04 months for female.
- Male aged 55 years and 03 months; female aged 50 years and 04 months, with at least 15 years in heavy, hazardous, or dangerous jobs, or extremely heavy, hazardous, or dangerous jobs according to the list issued by the Ministry of Labor - Invalids and Social Affairs or with at least 15 years working in areas with extremely difficult socio-economic conditions, including the time working in areas with a regional allowance coefficient of 0.7 or higher before January 1, 2021 (previously men from 55 to 60 years, female from 50 to 55 years with no requirement to work in areas with extremely difficult socio-economic conditions).
- Male aged 50 years and 03 months; female aged 45 years and 04 months with at least 15 years of coal mining work (previously from 50 to 55 years for both men and female).
- Individuals infected with HIV due to occupational accidents while performing assigned tasks (previously not regulated during task performance).
Additionally, for female employees, commune-level officials, or non-specialized activists in communes, wards, commune-level towns participating in social insurance who retire with 15 to under 20 years of social insurance contributions and meet the retirement age conditions above are entitled to a pension (previously required to be 55 years old).
Regarding Retirement Benefit Conditions Due to Reduced Working Capacity
As per Article 55 of the Law on Social Insurance, amended and supplemented by Article 219 of the 2019 Labor Code, employees, officials, and public employees who retire with at least 20 years of social insurance contributions are entitled to a lower pension than those fully meeting the retirement conditions if they meet one of the following cases:
- Male aged 55 years and 03 months and female aged 50 years and 04 months, experiencing a reduction in working capacity from 61% to less than 81% (previously men aged 55, female aged 50).- Male aged 50 years and 03 months and female aged 45 years and 04 months experiencing a reduction in working capacity from 81% or higher (previously men aged 50, female aged 45).- At least 15 years in extremely heavy, hazardous, or dangerous jobs from the list issued by the Ministry of Labor - Invalids and Social Affairs and experiencing a work capacity reduction from 61% or higher.
For Non-Commissioned Officers, Officers, Professional Soldiers
Regarding Retirement Benefit Conditions
Article 54 of the Law on Social Insurance, amended and supplemented by Article 219 of the 2019 Labor Code, stipulates that officers, professional soldiers of the People's Army; officers, non-commissioned officers in professional duties, officers, non-commissioned officers in technical expertise of the People's Public Security; cryptographic personnel receiving military pay; non-commissioned officers, soldiers serving on a term basis; students of military, police, cryptographic academies entitled to subsistence allowances are eligible for pensions if they have at least 20 years of social insurance contributions and meet one of the following conditions:
- Male aged 55 years and 03 months, female aged 50 years and 04 months, except as otherwise provided by the Law on People's Army Officers, Law on People's Public Security, Law on Cryptographic, Law on Professional Soldiers, defense employees, and public employees (previously men aged 55, female aged 50);
- Male aged 50 years and 03 months, female aged 45 years and 04 months with at least 15 years in heavy, hazardous, or dangerous jobs, or extremely heavy, hazardous, or dangerous jobs according to the list issued by the Ministry of Labor - Invalids and Social Affairs or with at least 15 years working in areas with extremely difficult socio-economic conditions, including the time working in areas with a regional allowance coefficient of 0.7 or higher before January 1, 2021 (previously men from 50 to 55 years, female from 45 to 50 years with no requirement to work in areas with extremely difficult socio-economic conditions);
- Individuals infected with HIV due to occupational accidents while performing assigned tasks (previously not regulated during task performance).
Regarding Retirement Benefit Conditions Due to Reduced Working Capacity
According to Article 55 of the Law on Social Insurance, amended and supplemented by Article 219 of the 2019 Labor Code, officers, professional soldiers of the People's Army; officers, non-commissioned officers in professional duties, officers, non-commissioned officers in technical expertise of the People's Public Security; cryptographic personnel receiving military pay; non-commissioned officers, soldiers serving on a term basis; students of military, police, cryptographic academies entitled to subsistence allowances who retire with at least 20 years of social insurance contributions, experiencing a reduction in working capacity from 61% or higher, are entitled to a lower pension than those fully meeting the retirement conditions if they meet one of the following cases:
- Male aged 55 years and 03 months, female aged 50 years and 04 months (previously men aged 50, female aged 45).
- At least 15 years in extremely heavy, hazardous, or dangerous jobs from the list issued by the Ministry of Labor - Invalids and Social Affairs.
Additionally, from January 1, 2021, voluntary social insurance participants are entitled to a pension when men reach 60 years and 03 months; female reach 55 years and 04 months (previously men aged 60, female aged 55) and have at least 20 years of social insurance contributions.
These are the significant changes regarding retirement benefit conditions from January 1, 2021, that everyone should be aware of to benefit from welfare policies and protect their rights.
Le Vy
