What are the cases being suspended from enjoying such pension or allowance in Vietnam?

What are the cases being suspended from enjoying such pension or allowance in Vietnam? (Internet image)

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

1. What are the cases being suspended from enjoying such pension or allowance in Vietnam?

Specifically, Clause 1, Article 64 of the Law on Social Insurance 2014, persons on pension or monthly social insurance allowance shall be suspended from enjoying such pension or allowance in one of the following cases:

- They illegally leave the country;

- They are declared missing by the court;

- There are grounds to confirm that their enjoyment of social insurance is illegal.

2. Guidance on suspension of entitlement to monthly pension in Vietnam

Pursuant to Article 23 of Circular 59/2015/TT-BLDTBXH, the suspension and continued entitlement to monthly pension and subsidy of social insurance shall comply with the provisions in Article 64 of the Law on social insurance with the following guidelines:

- The person whose monthly pension and subsidy of social insurance are suspended due to missing declaration from the Court and such persons shall continue to enjoy their monthly pension and subsidy of social insurance of the months whose monthly pension and subsidy have not yet been received, excluding the interests when the Court invalidates its decision.

- The persons who are enjoying their monthly pension and subsidy of social insurance but have the interrupted period of time not yet receiving their pension and subsidy shall receive the monthly pension and subsidy of the months whose monthly pension and subsidy have not yet been received, excluding the interests.

- The persons who are enjoying their monthly pension and subsidy of social insurance but dies during the interrupted period of time not yet receiving their pension and subsidy, in addition to the death benefits, their relatives also receive their pension and subsidy of the months whose pension and subsidy have not yet been received, exluding the interest.

- The persons who are enjoying their monthly pension or subsidy of social insurance but suspended due to the Court’s declaration as missing and then dead, their relatives shall not receive the monthly pension or subsidy of social insurance during the suspension time.

3. Monthly pension rate in Vietnam

The monthly pension rate is specified in Article 56 of the Law on Social Insurance 2014 as follows:

- From the effective date of this Law to January 1, 2018, the monthly pension of employees who fully satisfy the conditions specified in Article 54 of the Law on Social Insurance 2014 must equal 45% of the average monthly salary on which social insurance premiums are based as prescribed in Article 62 of the Law on Social Insurance 2014, corresponding to 15 years of social insurance premium payment, which shall be added with 2%, for men, or 3%, for women, for each additional year of social insurance premium payment, but must not exceed 75%.

- Since January 1, 2018, the monthly pension of employees who fully satisfy the conditions specified in Article 54 of the Law on Social Insurance 2014 will equal 45% of the average monthly salary on which social insurance premiums are based as prescribed in Article 62 of the Law on Social Insurance 2014, 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 Clause 1 of Article 56 of the Law on Social Insurance 2014, the pension rate shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%.

- The monthly pension of employees who fully satisfy the conditions specified in Article 55 of the Law on Social Insurance 2014 shall be calculated as stipulated in Clauses 1 and 2 of this Article, and reduced by 2% for each year of early retirement.

In case an employee’s age is short of up to 6 months compared to the retirement age, his/her pension shall be reduced by 1%; if his/her age is short of under 6 months, his/her pension shall not be reduced due to early retirement.

- The monthly pension of female employees who fully satisfy the conditions for pension enjoyment specified in Clause 3 of Article 54 of the Law on Social Insurance 2014 shall be calculated based on the period of social insurance premium payment and average monthly salary on which social insurance premiums are based, specifically as follows:

+ For a period of full 15 years, the monthly pension must equal 45% of the average monthly salary on which social insurance premiums are based as specified in Article 62 of the Law on Social Insurance 2014;

+ For a period of between full 16 years to under 20 years, the monthly pension shall be added with 2% for each additional year of payment.

- The lowest monthly pension of employees covered by compulsory social insurance who fully satisfy the conditions for pension enjoyment specified in Article 54 or 55 of the Law on Social Insurance 2014 must equal the statutory pay rate, except the cases specified at Point i, Clause 1, Article 2, and Clause 3, Article 54, of the Law on Social Insurance 2014.

Ho Quoc Tuan

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE