How to calculate monthly pension according to new regulations

Lao Dong Newspaper Legal Consulting Office replied:

Article 66 of the Law on Social Insurance 2024 (effective from July 1, 2025) stipulates the monthly pension level as follows:

1. The monthly pension level of eligible subjects specified in Article 64 of this Law is calculated as follows:

a) For female employees, it is 45% of the average salary used as the basis for social insurance contributions as prescribed in Article 72 of this Law, corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%;

b) For male employees, it is 45% of the average salary used as the basis for social insurance contributions as prescribed in Article 72 of this Law, corresponding to 20 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.

In case male employees have paid social insurance for 15 years but less than 20 years, the monthly pension is equal to 40% of the average salary used as the basis for paying social insurance as prescribed in Article 72 of this Law corresponding to 15 years of paying social insurance, then for each additional year of paying, 1% is added.

2. The monthly pension level for workers in certain special occupations and jobs in the People's Armed Forces is prescribed by the Government. The funding source is from the state budget.

3. The monthly pension of eligible subjects specified in Article 65 of this Law is calculated as prescribed in Clause 1 of this Article, then for each year of retirement before the prescribed age, it is reduced by 2%.

In case of early retirement under 06 months, the pension percentage will not be reduced, from 06 months to less than 12 months, it will be reduced by 1%.

4. The calculation of monthly pension for employees who are eligible for pension and have paid social insurance according to the provisions of international treaties to which the Socialist Republic of Vietnam is a member but have paid social insurance in Vietnam for less than 15 years, each year of payment during this period shall be calculated at 2.25% of the average salary used as the basis for paying social insurance as prescribed in Article 72 of this Law.

5. The Government shall specify in detail the levels and conditions for receiving pensions.

Thus, the method of calculating monthly pension according to the provisions of the Social Insurance Law 2024 is prescribed as above.