Retirement benefits for the persons participating in voluntary social insurance in Vietnam

Retirement benefits for the persons participating in voluntary social insurance in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Retirement benefits for the persons participating in voluntary social insurance in Vietnam

Retirement benefits for the persons participating in voluntary social insurance in Vietnam according to Article 22 of Circular 59/2015/TT-BLDTBXH is as follows:

- The retirement benefits for the persons having the previous time of voluntary social insurance payment shall comply with the provisions in Article 11 of Decree 115/2015/ND-CP and the detailed contents in Circular 59/2015/TT-BLDTBXH.

- When calculating the average income and the monthly salary paid for social insurance, the monthly income paid for voluntary social insurance is the monthly income paid for voluntary social insurance adjusted on the basis of consumer price index specified in Clause 2, Article 79 of the Law on social insurance.

Where the employees participating the in social insurance of Nghe An farmer can shift to the voluntary social insurance under the Decision 41/2009/QD-TTg dated 16/03/2009:

The monthly income paid for voluntary social insurance prior to 01/01/2008 is the monthly income paid for voluntary social insurance adjusted according to the adjustment of salary paid for social insurance of the respective year of the persons participating in the compulsory social insurance subject to the salary system decided by the employers.

2. Basis for calculating monthly pension for participants of voluntary social insurance in Vietnam

The calculation of monthly pension for participants of voluntary social insurance according to Clauses 1, 3 and 4, Article 11 of Decree 115/2015/ND-CP is as follows:

(1) The period over which the retirement benefit is paid is total payment periods of voluntary and compulsory social insurance.

(2) The monthly pension of an employee equals his monthly pension rate multiplied by (x) the average monthly income as the basis for social insurance payment prescribed in (3).

(3) The average monthly income as the basis for social insurance payment for determination of pension and lump-sum allowance shall be:

Where:

- The average monthly salary as the basis for compulsory social insurance payment shall be calculated as prescribed in Article 9 of Decree 115/2015/ND-CP.

- The average monthly salary as the basis for voluntary social insurance payment shall be the monthly income for which the voluntary social insurance has been paid which is adjusted as prescribed in Clause 2 Article 79 of the Law on social insurance:

The lump-sum allowance shall be calculated based on the number of years of social insurance premium payment in excess of the number of years corresponding to the 75% pension enjoyment rate, with half of the average monthly income on which social insurance premiums are based for each of these years.

3. Conditions for pension enjoyment for participants of voluntary social insurance in Vietnam

Conditions for pension enjoyment for participants of voluntary social insurance in Vietnam according to Article 73 of the Law on Social Insurance 2014 (amended in the Labor Code 2019) are as follows:

- A worker will receive retirement pension when he/she:

= Reaches the retirement age specified in Clause 2 Article 169 of the Labor Code 2019:

Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

= Has paid social insurance for at least 20 years.

- Employees who satisfy the age requirement specified at Point a, Clause 1 of Article 73 of the Law on Social Insurance 2014 (amended in the Labor Code 2019) but have paid social insurance premiums for under 20 years may continue paying social insurance premiums until the payment period reaches full 20 years in order to enjoy pension.

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