Reader Le Thi Thao, born on February 12, 1974, has been participating in social insurance for 23 years. She is wondering whether she can retire according to Decree 178/2024/ND-CP or not, if so, what is the pension rate?
Ms. Duong Thi Minh Chau - Head of Propaganda and Support Department of Participants of Region I Social Insurance (Hanoi) - Consulting: The pension rate rate is based on retirement age and the number of years of social insurance payment. If the leader of the unit is approved and agreed, the case of the reader will be eligible for Decree 178/2024/ND-CP and the reader is not deducted the pension ratio of his age, along with the basis for the number of years of social insurance to calculate the pension rate. According to the information provided by the reader, because of the 23 -year social insurance participation, the pension rate of the reader is 61%.
Ms. Duong Thi Minh Chau further explained, in case the employee applied for early retirement (including the employee who is 10 years old) according to the streamlining the payroll of Decree 178/2024/ND-CP will be considered for early retirement and not deducted % by age; However, it is still necessary to base on the number of years of social insurance payment of employees who have reached 35 years of social insurance payment for men and 30 years of social insurance payment for women to enjoy 75% of pensions; If the employee does not pay enough social insurance as prescribed, it will still be deducted 2% per year for lack of social insurance.
According to the representative of Hanoi Social Insurance, workers need to understand the policy of early retirement without having their pension rate deducted.
The Social Insurance Law stipulates that for each year of early retirement, the pension rate will be reduced by 2%, in case the early retirement period is less than 6 months, the pension percentage will not be reduced, from 6 months to less than 12 months, it will be reduced by 1%.
These early retirement policies that are not subject to pension deduction are often misunderstood as early retirement but still receive monthly pension with a maximum rate of 75% of the average salary used as the basis for social insurance contributions without deduction.
However, the monthly pension will be calculated based on the social insurance payment period up to the retirement date (for female employees, it is equal to 45% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated; for male employees, it is equal to 45% of the average amount corresponding to 20 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated and the maximum is 75%).
Thus, early retirement when streamlining the apparatus will not be reduced by 2% for each year of early retirement, while the monthly pension will still be based on the time of social insurance payment. To receive a pension with a maximum rate of 75%, male workers must pay for 35 years of social insurance, and female workers must pay for 30 years of social insurance.
