According to the Ministry of Labor, War Invalids and Social Affairs, in principle, pension levels are calculated based on the level and duration of social insurance contributions.
Accordingly, the higher the social insurance contribution level and the longer the contribution period, the higher the pension benefit will be.
Articles 56 and 74 of the 2014 Law on Social Insurance stipulate that the monthly pension for compulsory social insurance participants is calculated according to the formula:
Monthly pension = Benefit rate x Average monthly salary/income for social insurance contribution
In which, pension rate for male workers: Participating in social insurance for 20 years will receive 45%, then each additional year will add 2%, maximum 75%.
Corresponding to a certain number of years of social insurance contribution, the benefit rate of each employee will be different.
Pension rate for female workers: 45% for 15 years of social insurance contribution, then 2% for each additional year, up to 75%.
With the above calculation, male workers who want to receive the maximum pension must pay social insurance for at least 35 years; female workers must pay social insurance for at least 30 years to receive the maximum pension.
On the other hand, pensions will be adjusted based on the increase in the consumer price index and economic growth in accordance with the state budget and social insurance fund.
