In Vietnam, employees who meet the conditions of retirement age and the number of years participating in social insurance after leaving work will be entitled to a pension. The pension rate is not fixed but will be calculated according to the number of years of participation in social insurance. So, what are the conditions for employees to enjoy the maximum pension?
Article table of contents
According to the Labor Code 2019 of Vietnam, the retirement age of employees will increase from 2021, according to which, in normal working conditions, it will be 60 years and 03 months for male employees and 55 years and 04 months for female employees. Because the retirement age of male and female employees is different, the calculation of pension benefits will not be the same. Specifically:
According to Clause 2 Article 56 of the Law on Social Insurance 2014 of Vietnam, the monthly pension of employees who fully satisfy the conditions for pension ẹnoyment will equal 45% of the average monthly salary on which social insurance premiums and correspond to the following period of social insurance premium payment:
- For male employees who retire in 2018, 2019, 2020 and 2021 and since 2022, it is 16 years, 17 years, 18 years, 19 years and 20 years, respectively;
- For female employees who retire since 2018, it is 15 years;
For employees defined at Points a and b of this Clause, the pension rate shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%.
Formula:
Pension = Average salary paid for social insurance x Benefit rate
Thus, in order to enjoy pension at the maximum rate of 75%, employees must have the following minimum number of years of social insurance payment:
+ Retirement in 2021: Pay at least 34 years of social insurance for male employees, 30 years of social insurance for female employees.
+ Retirement from 2022 onwards: Pay at least 35 years of social insurance for male employees, 30 years of social insurance for female employees.
Note:
- The above pension enjoyment rate applies to employees who are eligible for pension enjoyment. That is, meet the conditions of retirement age and number of years participating in social insurance.
>> View more at the Summary of conditions for pension ẹnoyment from 2021 in Vietnam.
- The pension enjoyment rate will be calculated based on the average monthly salary on which social insurance premiums are based specified in Article 62 of the Law on Social Insurance 2014 of Vietnam.
In short, the conditions for employees to enjoy the maximum pension from 2021 are: (1) Eligibility for pension; (2) Satisfying the minimum number of years of payment of social insurance, specifically for male employees, it is at least 34 years of social insurance, for female employees, it is at least 30 years of social insurance.
Thuy Tram
