Mr. Nguyen Van Tuan (Bac Ninh) asks: What case does the employee who pays social insurance get to retire retirement 5 years before age, and return early then will be disadvantaged when calculating retirement pension?
Social Insurance of Vietnam responds:
According to Clause 1, Article 5, Decree 135/2020/ND-CP dated November 18, 2020, if the employee belongs to the following cases, they are entitled to retire before the maximum age of 5 years:
a) Employees who have 15 years or more working in a profession or job that is physically demanding, hazardous, or extremely hazardous, or extremely physically demanding and hazardous, as listed by the Ministry of Labor, Invalids and Social Affairs.
b) Employees who have 15 years or more working in areas with particularly difficult socio-economic conditions, including time working in areas with a location allowance factor of 0.7 or higher before January 1, 2021.
The Minister of Labor, Invalids and Social Affairs issues a list of areas with particularly difficult socio-economic conditions.
c) Employees who have a disability of 61% or more.
d) Employees who have a total time working in a profession or job as specified at point a and time working in an area as specified at point b of this clause of 15 years or more.
If the employee retires before age without exceeding 5 years belonging to the provisions at point C above, the average annual rate used to calculate the monthly retirement pension will decrease by 2%; if the retirement age has a fractional time of up to 6 months, the decrease is 1%; if over 6 months, there will be no decrease in the percentage due to early retirement.
