Reader Le Van Tung (Dong Da District, Hanoi) has participated in social insurance (SI) for more than 36 years and is expected to retire in August 2025 under the staff streamlining program prescribed in Decree 178/2024/ND-CP. Readers wonder whether they will receive the maximum pension or not?
Speaking to Lao Dong Newspaper, Ms. Duong Thi Minh Chau - Head of the Department of Propaganda and Support for Social Insurance Participants Region I (Hanoi) - said: According to current regulations, the pension rate depends on the retirement age and the number of years of social insurance contributions.
However, in the case of retirement under the staff streamlining program stipulated in Decree 178, employees will not have their pension rate deducted due to early retirement, but will only rely on the number of years of social insurance contributions to calculate pensions.
Specifically, male workers who have paid 35 years of social insurance will receive 75% of the average monthly salary for social insurance contributions, which is the maximum according to the provisions of the Social Insurance Law. In case Mr. Le Van Tung has paid social insurance for more than 36 years, he will receive a pension of 75%, without deductions.
Ms. Chau noted that many people misunderstand that early retirement under the staff streamlining policy is of course entitled to the maximum pension. In fact, to achieve 75% of monthly pension, male workers must pay social insurance for 35 years and female workers must pay for 30 years. If there is not enough time to pay, the benefit level will be reduced by 2% for each year of lack.
According to the general provisions of the Social Insurance Law, each year of early retirement will have a 2% pension reduction, unless employees retire according to specific policies such as Decree 178 - in which this deduction is not applied.
Thus, with more than 36 years of social insurance contributions and retirement under the streamlining program, Mr. Tung will receive a pension of 75%, not deducted due to early retirement.
