Clauses 1 and 3, Article 66 of the 2024 Law on Social Insurance and Decree 158/2025/ND-CP stipulate:
Monthly pension level = Monthly pension benefit rate x Average monthly salary for social insurance contributions.
In which, the monthly pension benefit rate of employees is calculated according to the provisions of Article 66 of the 2024 Law on Social Insurance and Decree 158/2025/ND-CP, to determine the monthly early pension benefit rate depends on each subject, whether male or female, specifically as follows:
+ For female workers:
Pension rate = 45% + (Social insurance participation period - 15 years) * 2% - Reduction rate when retiring early.
Note, the reduction rate when retiring early is determined as follows:
+ For male workers:
Participating in social insurance for over 20 years:
Pension rate = 45% + (social insurance participation period - 20 years) x 2% - Reduction rate when retiring early.
Participate in social insurance for 15 years to less than 20 years.
Pension rate = 40% + (social insurance participation period - 15 years) x 1% - reduction rate when retiring early.
Note that the pension rate does not exceed 75%.
Reduced rate of early retirement = Number of years of early retirement * 2%.
If the number of years of early retirement has odd months of less than 6 months, the percentage of pension benefits is not reduced, from 6 months to less than 12 months, it is reduced by 1%.
The average monthly salary for social insurance contributions is calculated according to Article 16 of Circular 12/2025/BNV.
Thus, when retiring early, they will have to receive a pension at a lower rate than retiring at the right age and there is no mechanism to adjust or compensate for the early retirement rate for people who are receiving early pensions.
