Sending a question to Vietnam Social Security, reader N.N.C said: "I have been teaching at a semi-public kindergarten since 1988, paid voluntary social insurance from September 1999 to 2002, and compulsory social insurance from 2002 to now.
Please ask, if I want to retire early, what is the pension calculation method?".
Answering this question, Vietnam Social Security answers as follows:
Pension benefit conditions
Clause 1, Article 64 of the 2024 Law on Social Insurance stipulates that employees participating in compulsory social insurance when resigning with a compulsory social insurance contribution period of 15 years or more are entitled to a pension if they fall into one of the following cases:
a) Being of retirement age as prescribed in Clause 2, Article 169 of the Labor Code;
b) Being of retirement age as prescribed in Clause 3, Article 169 of the Labor Code and having a total compulsory social insurance contribution period of 15 years or more when working in heavy, hazardous, dangerous or especially heavy, hazardous, dangerous occupations and jobs under the list of heavy, hazardous, dangerous, or especially heavy, hazardous, and dangerous occupations and jobs promulgated by the Minister of Labor, Invalids and Social Affairs or working in areas with particularly difficult socio-economic conditions, including working time in places with regional allowances with a coefficient of 0.7 or higher before January 1, 2021".
Subjects and conditions for enjoying pensions when working capacity is reduced
Clause 1, Article 65 of the 2024 Law on Social Insurance stipulates that employees participating in compulsory social insurance (subjects specified in points a, b, c, g, h, i, k, l, m and n, clause 1 and clause 2, Article 2 of the 2024 Law on Social Insurance) when resigning with a compulsory social insurance contribution period of 20 years or more, are entitled to a pension at a lower level than those eligible for a pension specified in points a, b... clause 1, Article 64 of this Law if they fall into one of the following cases:
a) Being a minimum of 05 years younger than the age specified in point a, clause 1, Article 64 of this Law and having a working capacity reduction of 61% to below 81%;
b) Being a minimum of 10 years younger than the age specified in point a, clause 1, Article 64 of this Law and having a working capacity reduction of 81% or more".
Monthly pension level
Clause 1, Clause 3, Article 66 of the 2024 Law on Social Insurance stipulates:
The monthly pension level of eligible subjects specified in Article 64 of the 2024 Law on Social Insurance is calculated as follows:
a) The monthly pension level of female workers who are eligible for retirement under normal working conditions is calculated as follows: Equal to 45% of the average salary level used as the basis for social insurance contributions specified in Article 72 of this Law corresponding to 15 years of social insurance contributions, then for each additional year of contribution, an additional 2% is calculated, the maximum level is equal to 75%.
b) The monthly pension level of male workers who are eligible for retirement under normal working conditions is calculated as follows: Equal to 45% of the average salary level used as the basis for social insurance contributions specified in Article 72 of this Law corresponding to 20 years of social insurance contributions, then for each additional year of contribution, an additional 2% is calculated, the maximum level is equal to 75%.
In case male workers have a social insurance contribution period of 15 years to less than 20 years, the monthly pension level is equal to 40% of the average salary level used as the basis for social insurance contributions specified in Article 72 of this Law corresponding to 15 years of social insurance contributions, then for each additional year of contribution, an additional 1% is calculated".
The monthly pension level of eligible subjects specified in Article 65 of the 2024 Law on Social Insurance (mentioned above) is calculated as specified in Clause 1 of this Article, then for each year of early retirement, it is reduced by 2%.
Because the content of Ms. C's question did not provide complete information, Vietnam Social Security does not have a basis for a specific answer. However, Vietnam Social Security provides legal regulations on pension benefits and pension benefit levels that Ms. C understands and compares, determines her own social insurance benefits or she can contact the nearest social insurance agency directly and provide complete information for advice and specific answers.
