Sending a question to Vietnam Social Insurance (VSS), reader T.L.P said: "I was born on February 8, 1972, have paid social insurance for 21 years and 9 months. May I ask, can I apply for early retirement now? What are the conditions for receiving pensions and benefits? ".
Responding to how to calculate the monthly pension in this case, Vietnam Social Security said:
Article 56 of the Law on Social Insurance 2014 and Article 7 of Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government stipulate that the monthly pension of employees is calculated by multiplying the monthly pension rate by the average monthly salary for social insurance contributions, in which:
- The pension rate for male workers retiring from 2022 onwards is calculated at 45% of the average monthly salary for social insurance contributions corresponding to 20 years of social insurance contributions; then for each additional year of social insurance contributions, an additional 2% is calculated, with a maximum of 75% of the average monthly salary for social insurance contributions.
- The pension rate for female employees retiring from 2018 onwards is calculated at 45% of the average monthly salary for social insurance contributions corresponding to 15 years of social insurance contributions; then for each additional year of social insurance contributions, an additional 2% is calculated, with a maximum of 75% of the average monthly salary for social insurance contributions.
In case employees retire early due to reduced working capacity, for each year of early retirement, the pension will be reduced by 2%.
The average monthly salary for social insurance contributions to calculate pensions is prescribed in Clauses 1, 2, 3, Article 62 of the Social Insurance Law 2014, specifically as follows:
Employees subject to the salary regime prescribed by the State who have paid social insurance for the entire period under this salary regime shall have their average monthly salary calculated for the number of years of social insurance contributions before retirement as follows:
- If you joined social insurance before January 1, 1995, the average monthly salary for social insurance contributions of the last 05 years before retirement will be calculated;
- If you participate in social insurance from January 1, 1995 to December 31, 2000, the average monthly salary for social insurance contributions of the last 06 years before retirement will be calculated;
- If you participate in social insurance from January 1, 2001 to December 31, 2006, the average monthly salary for social insurance contributions of the last 08 years before retirement will be calculated;
- If you participate in social insurance from January 1, 2007 to December 31, 2015, the average monthly salary for social insurance contributions of the last 10 years before retirement will be calculated;
- If you participate in social insurance from January 1, 2016 to December 31, 2019, the average monthly salary for social insurance contributions of the last 15 years before retirement will be calculated;
- If you participate in social insurance from January 1, 2020 to December 31, 2024, the average monthly salary for social insurance contributions of the last 20 years before retirement will be calculated;
- If you participate in social insurance from January 1, 2025 onwards, the average monthly salary for social insurance contributions for the entire period will be calculated.
Employees who have the entire period of social insurance payment according to the salary regime decided by the employer will have their average monthly salary for social insurance payment for the entire period.
Employees who have both a period of social insurance payment subject to the salary regime prescribed by the State and a period of social insurance payment according to the salary regime decided by the employer will have their average monthly salary for social insurance payment for all periods calculated, in which the period of payment according to the salary regime prescribed by the State will be calculated as the average monthly salary for social insurance payment according to the provisions of Clause 1 of this Article.
