Vietnam: Are employees suffering from fatal disease entitled to early retirement from 2021?

According to Article 7 of the Decree No. 135/2020/NĐ-CP of Vietnam’s Government, from January 01, 2021, regulations on retirement benefits associated with pension age requirement provided for in Articles 54, 55, clause 1 Article 73 of the Law on Social Insurance 2014 of Vietnam 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.

Pension age requirement  of employees from 2021 is specified as follows:

An employee (except for the case of female employee that is a commune official or a part-time worker at the commune authority) will receive retirement pension if he/she has paid social insurance for at least 20 years and:

- 60 years 03 months for males and 55 years 04 months for females (after 2021, increase by 03 months for males and 04 months for females after every year).

- 55 years 03 months for males and 50 years 04 months for females (after 2021, increase by 03 months for males and 04 months for females after every year) and has at least 15 years’ doing the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs of Vietnam; or has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region factor of at least 0,7 before January 01, 2021.

- His/her age is younger than 55 years 03 months for males and 50 years 04 months for females (after 2021, increase by 03 months for males and 04 months for females after every year) by up to 10 years and he/she has worked in coal mines for at least 15 years.

- He/she contracted HIV due to an occupational accident during performance of his/her assigned duty.

Concurrently, an employee whose work capacity is reduced resigns after having paid social insurance for at least 20 years will receive a lower retirement pension than the rate specified above if:

- His/her age is younger than 60 years 03 months for males and 55 years 04 months for females (after 2021, increase by 03 months for males and 04 months for females after every year) by up to 05 years and he/she suffers from 61% to under 81% work capacity reduction.

- His/her age is younger than 60 years 03 months for males and 55 years 04 months for females (after 2021, increase by 03 months for males and 04 months for females after every year) by up to 10 years and he/she suffers from at least 81% work capacity reduction.

- He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs of Vietnam and suffers from at least 61% work capacity reduction.

Thus, according to the above provisions, from 2021, an employee with fatal disease will still be entitled to early retirement and pension if he/she has paid social insurance for at least 20 years and is one of the following cases:

- His/her age is not younger than 55 years 03 months for males and 50 years 04 months for females in case of suffering from 61% to under 81% work capacity reduction.

- His/her age is not younger than 50 years 03 months for males and 45 years 04 months for females in case of suffering from at least 81% work capacity reduction.

- He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations and suffers from at least 61% work capacity reduction.

It should be noted that, after 2021, the retirement age shall increase by 03 months for males (by 2028) and 04 months for females (by 2035) after every year.

Currently, according to provisions of the Labor Code 2012 and the Law on Social Insurance 2014 of Vietnam, an employee with fatal disease shall be entitled to early retirement if:

- His/her age is 55 years for males and 50 years for females and he/she suffers from at least 61% work capacity reduction.

- His/her age is 50 years for males and 45 years for females and he/she suffers from at least 81% work capacity reduction.

It can be seen that the limit on retirement age of employees suffering from fatal disease has been increased compared to the current regulations from 2021. However, in case the employee has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations and suffers from at least 61% work capacity reduction, the retirement age is not limited.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE