Mr. Phan Luu (Hanoi) asked: I was born in 1966, have paid social insurance for 32 years and 8 months, and am planning to apply for early retirement according to Decree 178/2024/ND-CP (Decree 178). Will I be able to receive the maximum 75% pension?
Ms. Duong Thi Minh Chau - Head of Communications Department of Hanoi Social Insurance advises:
Based on the information provided by the reader, because he/she does not have 35 years of social insurance contributions, he/she will not receive the full 75% pension, but will only receive 73% pension.
Ms. Duong Thi Minh Chau further explained that in the case of employees applying for early retirement (including employees who are 10 years younger) under the streamlining of the payroll of Decree 178/2024/ND-CP, they will still be considered for early retirement and will not be deducted % according to age; however, it is still necessary to base on the number of years of social insurance contributions of the employee to reach 35 years of social insurance contributions for men and 30 years of social insurance contributions for women to receive the full 75% pension; if the employee does not pay enough social insurance for the prescribed number of years, 2% will still be deducted for each year of missing social insurance contributions.
According to the representative of Hanoi Social Insurance, workers need to understand correctly the policy of retiring early without having their pension rate deducted.
The Social Insurance Law stipulates that for each year of early retirement, the pension rate is reduced by 2%. In case the early retirement period is less than 6 months, the pension rate is not reduced. From 6 months to less than 12 months, the pension rate is reduced by 1%.
These early retirement policies without deduction of pension rate are often misunderstood as early retirement but still receiving monthly pension with a maximum rate of 75% of the average salary used as the basis for social insurance contribution without deduction.
However, the monthly pension will be calculated based on the period of social insurance payment up to the time of retirement (for female workers, it is 45% of the average salary used as the basis for social insurance payment corresponding to 15 years of social insurance payment, then 2% will be added for each additional year of payment; for male workers, it is 45% of the average salary corresponding to 20 years of social insurance payment, then 2% will be added for each additional year of payment, both with a maximum of 75%).
Thus, early retirement when streamlining the apparatus will not be reduced by 2% for each year of early retirement, and the monthly pension will still be based on the time of social insurance contribution. To receive a pension with a maximum rate of 75%, male workers must pay social insurance for 35 years, and female workers must pay social insurance for 30 years.
