I am a 51-year-old woman with 24 years and 4 months of social insurance contributions. Currently, my health is not good, and I would like to retire early. Will I be eligible to receive a pension? This is a question from Ms. Nguyen Thi T. sent to LawNet.
Article table of contents
LawNet would like to answer your question as follows:
Conditions for early retirement
According to Article 55 of the Law on Social Insurance 2014 of Vietnam and Article 16 of Circular No. 59/2015/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, when resigning, if the employees have full 20 years or more of social insurance payment, they shall enjoy their pension at a lower rate if subject to one of the following cases:
- Being full 51 years old, for men, or full 46 years old, for women, and suffering a working capacity decrease of 61% or more;
- Being full 50 years old, for men, or full 45 years old, for women, and suffering a working capacity decrease of 81% or more;
- Suffering a working capacity decrease of 61% or more and having a full 15 years doing extremely heavy, hazardous or dangerous occupations or jobs on the list jointly issued by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health according to Circular No. 15/2016/TT-BLDTBXH.
Concurrently, commissioned officers, non-commissioned officers, military personnel, soldiers, etc. serving in the Armed Forces and the People's Public Security are eligible for early retirement if they have contributed to social insurance for at least 20 years or more, have a work capacity reduction of 61% or higher, and fall into one of the following cases:
- Being full 50 years old, for men, or full 45 years old, for women;
- Having a full 15 years doing extremely heavy, hazardous or dangerous occupations or jobs on the list jointly issued by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health according to Circular No. 15/2016/TT-BLDTBXH.
Thus, according to the above regulations, to be eligible for early retirement, employees must have contributed to social insurance for at least 20 years or more and undergo a work capacity assessment with a reduction of 61% or higher. In the case of Ms. T, to qualify for early retirement, she must meet two conditions: having at least 20 years of social insurance contributions and experiencing a work capacity reduction. Therefore, Ms. T needs to undergo a work capacity assessment and submit her application to the Provincial Medical Assessment Council (according to Circular No. 56/2017/TT-BYT). The application shall include the following documents:
- Application for medical assessment;
- Original copy or valid copy of at least one of the following medical documents: Medical record summary, disability confirmation, discharge note, prescriptions and assessment record of occupational diseases, etc;
- One of the following documents (with photos): Identity card; Citizen identification card; Passport that remains valid.
Pension for early retirement
According to Article 17 of Circular No. 59/2015/TT-BLDTBXH, the monthly pension of an employee equals his monthly pension rate multiplied by (x) the average monthly salary as the basis for social insurance payment and then is reduced by 2% for each year of retirement prior to the prescribed age.
- Each retired female employee shall be entitled to a monthly pension rate of 45% equivalent to 15 years of social insurance payment, which shall be added with 2% for each additional year of social insurance payment provided that the maximum rate is 75%. The monthly pension rate shall be reduced by 2% for each year of retirement prior to the prescribed age.
- Each retired male employee shall be entitled to a monthly pension rate of 45% equivalent to the number of years of social insurance payment in the below table, which shall be added with 2% for each additional year of social insurance payment provided that the maximum rate is 75%. The monthly pension rate shall be reduced by 2% for each year of retirement prior to the prescribed age.
Moreover, where the retirement age has the odd time up to 06 months, the reduction is 1%, no reduction of percentage if over 06 months due to retirement prior to the age of such year.
Thus, according to the above regulations, the percentage of Ms. T’s pension entitlement is calculated as follows:
- 45% for the first 15 years;
- From the 16th year to the 24th years is 9 years: 9 x 2% = 18%;
- 04 months is calculated as ½ year: 0.5 x 2% = 1%
The total of above percentage is 45% + 18% + 1% = 64% (only calculating up to 75%).
Ms. T retires 4 years before the prescribed age of 55, so the pension rate is calculated to decrease: 3 x 2% = 6%.
Therefore, the percentage of Ms. T’s monthly pension entitlement is 64% - 6% = 58%.
Ty Na
