Vietnam: Annulling several regulations related to pensions from January 01, 2021

Specifically, according to Clause 2 Article 8 of the Decree No. 135/2020/NĐ-CP of Vietnam’s Government, as of the date of entry into force of this Decree, any previous regulation in contravention of this Decree and the following provisions shall cease to be effective, specifically as follows:

1. Conditions for pension enjoyment

* Decree No. 115/2015/NĐ-CP:

- Annulling provision on conditions for pension enjoyment of Article 6 of the Decree No. 115/2015/NĐ-CP.

- Substitute provision, legal basis:

• Article 169, Clause 1 Article 219 of the Labor Code 2019;

• Decree No. 135/2020/NĐ-CP.

* Law on Social Insurance 2014:

- Annulling:

• Provision on conditions for pension enjoyment of Article 54 of the Law on Social Insurance 2014;

• Provision on conditions for employees to enjoy pension when suffering working capacity decrease of Article 55 of the Law on Social Insurance 2014;

• Provision on conditions for employees to enjoy pension when participating in voluntary social insurance of Clause 2 Article 73 of the Law on Social Insurance 2014.

- Substitute provision: Clause 1 Article 219 of the Labor Code 2019.

2. The statutory retirement ages as the basis for determination of the number of years of early retirement

- Annulling provisions on:

• The statutory retirement ages as the basis for determination of the number of years of early retirement on which a decrease in pension rate of Clause 3 Article 7 of the Decree No. 115/2015/NĐ-CP;

• The statutory retirement ages as the basis for determination of the number of years of early retirement on which a decrease in pension rate for officers, career military personnel, ect. of Clause 3 Article 9 of the Decree No. 33/2016/NĐ-CP.

- Substitute provision: Points a, b Clause 3 Article 7 of the Decree No. 135/2020/NĐ-CP.

>> View more: Decree No. 135/2020/NĐ-CP: Statutory retirement ages serve as basis for determination of the number of years of early retirement from 2021 in Vietnam

3. Conditions on retirement age

- Annulling:

• Conditions on retirement age for person participating in compulsory social insurance and voluntary social insurance of Clause 2 Article 11 of the Decree No. 115/2015/NĐ-CP;

• Conditions on retirement age for officers, career military personnel, etc. participating in compulsory social insurance and voluntary social insurance of Clause 2 Article 12 of the Decree No. 33/2016/NĐ-CP.

- Substitute provision, legal basis:

• Article 169, Clause 1 Article 219 of the Labor Code 2019;

• Decree No. 135/2020/NĐ-CP.

4. Eligibility requirements for retirement pension for persons participating in voluntary social insurance

- Annulling provision on eligibility requirements for retirement pension for persons participating in voluntary social insurance of Point a Clause 2 Article 5 of the Decree No. 134/2015/NĐ-CP.

- Substitute provision, legal basis:

• Article 169, Clause 1 Article 219 of the Labor Code 2019;

• Decree No. 135/2020/NĐ-CP.

5. Conditions for monthly pension for officers, career military personnel, etc.

- Annulling provision on conditions for monthly pension for officers, career military personnel, etc. of Points a, b Clause 1 Article 8 of the Decree No. 33/2016/NĐ-CP.

- Substitute provision, legal basis:

• Article 169, Clause 1 Article 219 of the Labor Code 2019;

• Decree No. 135/2020/NĐ-CP.

6. Retirement age

- Annulling provision on retirement age of Article 187 of the Labor Code 2012.

- Substitute provision: Article 169 of the Labor Code 2019.

Above are all 11 regulations on pension adjustment that will be officially abolished from January 01, 2021 that employers and employees should pay attention to when applying. Customers and Members can look up the exact status of pension regulations at Website lawnet.vn.

Thuy Tram

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