Ms. Kim Lan (Hanoi) asked: I was born in February 1971, paid social insurance for 29 years, planned in May 525 will retire early according to Decree 178/2024/ND-CP (Decree 178) 75% of pension?
Ms. Duong Thi Minh Chau - Head of Hanoi Social Insurance Communication Department - Consulting: The rate of pension entitlement is based on the retirement age and the number of years of social insurance payment. Implementing the policy of streamlining the payroll according to Decree 178/2024/ND-CP, the reader is not deducted from the rate of retirement before the age, so the annual number of social insurance premiums to calculate the pension rate. In case if female workers have 29 years of social insurance payment, they will receive 73%.
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 still be be considered for early retirement and are 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 properly understand the retirement policy before the age without deducting the pension rate.
The Law on Social Insurance stipulates that each year of retirement before age, the reduction of pension rate is reduced by 2%, in case the retirement period before the age of less than 6 months does not reduce the percentage of pension, from full 6 months to less than 12 months then reduced 1%.
Retirement policies before age without deducting this pension rate are often misunderstood to be retired before age but still enjoy monthly pension with a maximum rate of 75% of the average salary as a basis for social insurance payment. without being deducted.
However, the monthly pension will be calculated according to the time of social insurance payment up to the time of retirement (for female workers equal to 45% of the average salary as a basis for social insurance premium, equivalent to 15 years of social insurance and later That adds each year to pay 2%; for male workers is equal to 45% 75%).
Thus, retiring before the age when streamlining the apparatus will not be reduced from 2% for each year of early retirement, while the monthly pension will still be based on the time of social insurance payment. In order to enjoy a pension with a maximum rate of 75%, male workers must pay 35 years of social insurance, and female workers must have 30 years of social insurance payment.
