Recently, the Government of Vietnam officially promulgated Decree 135/2020/ND-CP stipulating retirement age. This Decree provides transitional regulation for the Labor Code 2019 and the Law on Social Insurance 2014.
Article table of contents
age milestone for calculating years of retirement before age from 2021 (Illustrative Image)
In Article 7 of Decree 135/2020/ND-CP, from January 1, 2021, regulations on retirement benefits associated with pension age requirement provided for in Articles 54, 55, clause 1 Article 73 of the Social Insurance Law 2014 shall be done in accordance with regulations on retirement age and pension age requirement in Article 169, clause 1 Article 219 of the Labor Code 2019 and this Decree. To be specific:
- Since January 1, 2021, the retirement age of employees under ordinary working conditions are 60 years 3 months for male employees and 55 years 4 months for female employees; and the age increases by 3 months for male employees each successive year until he reaches 62 in 2028 and increases by 4 months for female employees each successive year until she reaches 60 in 2035.
- Employees with work capacity reduction; doing laborious, toxic, and dangerous occupations or highly laborious, toxic and dangerous occupations; working in highly disadvantaged areas may retire at the age earlier but not exceeding 5 years before the statutory retirement age of employees under normal conditions.
Note: For male employees born in December 1960 and female employees born in December 1965 under ordinary working conditions, the retirement date is the end of December 31, 2020, the pension effective date is January 1, 2021.
The age milestones for calculating the number of years of early retirement used as a basis for reducing the pension rate by 2% per year specified in Clause 3, Article 56 of the Social Insurance Law 2014 are determined as follows:
Firstly: For employees under indefinite-term employment contracts, definite-term employment contracts; employees working under employment contracts with a term from 1 month to less than 3 months; officials and public employees; defense and police workers, and cipher officers; Vietnamese guest workers; executives of enterprises, cooperative executives with salary:
- For employees under normal conditions, the age milestone is 60 years and 3 months for males and 55 years and 4 months for females from January 01, 2021. Then, the age will increase by 3 months per year for males until reaching 62 years in 2028 and by 4 months per year for females until reaching 60 years in 2035.
- For employees doing laborious, toxic, and dangerous occupations or highly laborious, toxic and dangerous occupations; working in highly disadvantaged areas, including the period he/she works in areas with the region-based allowance of at least 0.7 (allowance for those working in disadvantaged areas) before January 01, 2021, the age milestone is lower but no more than 5 years earlier than the statutory retirement age of employees under normal conditions in Vietnam.
- For employees doing coal mining jobs underground as stipulated in Appendix III issued with Decree 135/2020/ND-CP, the age milestone is reduced by 10 years compared to the statutory retirement age of employees under normal conditions in Vietnam.
Secondly: For employees who are officers, professional soldiers of the people’s army; officers, non-commissioned officers of the police; persons doing cipher work with salary like military personnel; non-commissioned officers, soldiers of the people’s army; non-commissioned officers, soldiers of the police serving for a definite period; army, police, cipher cadets in school receiving allowances:
- For employees under normal conditions, the age milestone is 60 years and 3 months for men and 55 years and 4 months for women starting from January 01, 2021. Then, the age will increase by 3 months per year for men until reaching 62 years in 2028 and by 4 months per year for women until reaching 60 years in 2035.
- For employees doing heavy, hazardous, dangerous, or exceptionally heavy, hazardous, or dangerous jobs or working in highly disadvantaged areas, including the period he/she works in areas with the region-based allowance of at least 0.7 (allowance for those working in disadvantaged areas) before January 01, 2021, the age milestone is lower but no more than 5 years earlier than the statutory retirement age of employees under normal conditions in Vietnam.
Ty Na
