The average salary used as the basis for social insurance contributions to receive pensions and one-time allowances is an issue that many employees are interested in when they reach retirement age or are eligible for the regime. Among them, many will retire at the end of 2025.
Mr. Nguyen Thanh Nam (Hanoi) has participated in social insurance for more than 28 years and will start receiving pension from December 15. Mr. Nam wondered whether the pension was calculated on the average of the last 72 months (6 years) before retirement or not?
Regarding this issue, Vietnam Social Security said: According to Article 72 of the Social Insurance Law 2024, the average monthly salary for social insurance contributions to calculate pensions is calculated based on the number of years the employee has participated in insurance.
For those who are paid under the State regime and have paid social insurance for the entire period under this regime, the average salary is determined in each stage.
Participating in social insurance before January 1, 1995: Calculating the average of the last 5 years; participating from January 1, 1995 to December 31, 2000: Calculating the average of the last 6 years; participating from January 1, 2001 to December 31, 2006: calculating the average of the last 8 years; participating from January 1, 2007 to December 31, 2015: calculating the average of the last 10 years; participating from January 1, 2016 to December 31, 2019: calculating the average of the last 15 years; participating from January 1, 2020 to December 31, 2024: calculating the average of the last 20 years; participating from January 1, 2025 onwards: calculating the average of the entire period of social insurance payment.
Employees whose entire period of social insurance payment is according to the salary regime decided by the employer will have their average salary calculated as the basis for the entire period of social insurance payment.
In case the employee has paid social insurance according to the salary regime prescribed by the State and the salary regime decided by the employer, the calculation of the average salary as the basis for social insurance payment will be implemented for the entire payment period. In which, the payment period according to the salary regime prescribed by the State will be calculated as the average salary according to the instructions in Clause 1 of this Article.
Vietnam Social Insurance also said that employees who retire from 2025 will be entitled to pension calculation according to the new regulations of the Social Insurance Law 2024, effective from July 1, 2025. For those who have paid 30 years of social insurance, the monthly pension will be different between men and women.
According to Articles 66 and 72 of this law, the monthly pension of compulsory social insurance contributors is determined based on the pension rate and the average monthly salary for social insurance contributions.
Female workers are calculated at 45% of the average salary as the basis for paying social insurance for 15 years of insurance contributions, then for each additional year of contributions, an additional 2% is calculated, not exceeding 75%.
Meanwhile, male workers are paid 45% of the average salary with 20 years of social insurance contributions, then each additional year of contributions is added by 2%, the maximum is also 75%. The amended Law on Social Insurance also adds a method of calculating for male workers with 15 to less than 20 years of social insurance contributions, with a starting rate of 40% and an increase of 1% per year.
This regulation helps calculate pensions more fairly between men and women, while encouraging employees to participate in social insurance for a long time to enjoy the highest benefits upon retirement.
