The Lao Dong Newspaper Legal Consulting Office replied:
The 2024 Social Insurance Law has made important changes to the pension regime, especially the policy for people retiring early. These adjustments aim to protect the rights of workers, especially cadres, civil servants, public employees (CBCCVC) and those working in harsh environments.
Monthly pension level according to the Law on Social Insurance 2024
According to Article 66 of the Law on Social Insurance 2024, the monthly pension is calculated based on the number of years of social insurance (SI) contributions, specifically:
For female workers: Receive a pension of 45% of the average salary used as the basis for social insurance contributions after having paid for 15 years. After that, each additional year of contribution will be added by 2%, up to a maximum of 75%.
For male workers: Receive a pension equal to 45% of the average salary used as the basis for social insurance contributions after 20 years of full contributions. After that, each additional year of contribution will be added by 2%, up to a maximum of 75%.
In case male workers have paid social insurance for 15 years to less than 20 years: The monthly pension is 40% of the average salary used as the basis for social insurance contributions, then each additional year of contributions is added by 1%.
Thus, the minimum pension is 45% and the maximum is 75% of the average salary used as the basis for social insurance contributions.
Early retirement policy according to Decree 178/2024/ND-CP
Decree 178/2024/ND-CP has important regulations on policies for civil servants, public employees and employees who retire early. Specifically:
Employees who retire 2 to 5 years before the prescribed age are still entitled to pension under the social insurance regime without having their benefit rate deducted.
Employees who retire 5 years to less than 10 years before the prescribed age will not have their pension rate deducted if they have paid social insurance for enough time.
In case of having worked for 15 years in a heavy, toxic industry or in an area with particularly difficult socio-economic conditions, if retiring early (2-5 years early), they will still receive full pension without having the rate deducted.
A notable point of Decree 178/2024 is the regulation that employees who retire early will not have their pension rate deducted if they meet the conditions on social insurance payment period and retirement age according to regulations. This helps ensure the rights of those who have to leave the labor market early for objective reasons.
With the application of the above regulations, the monthly pension level for civil servants, public employees and employees when retiring early according to Decree 178/2024 will range from 45% to 75% of the average salary as the basis for social insurance contributions.
