Ms. Ha Thi Bui in Thanh Hoa asked: I was born in 1969, expected to retire in 2026. I have paid social insurance since 1994. So how is my monthly pension calculated?
Answering the question, Lawyer Nguyen Thu Trang, Deputy Director of He Va Law Company Limited, said that in normal conditions, monthly pensions are calculated according to Article 66 of the Law on Social Insurance. Accordingly:
For female workers, it is equal to 45% of the average salary 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 75%.
For male workers, it is equal to 45% of the average salary 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 75%.
Thus, basically monthly pensions have the same calculation formula. The pension level of each individual is different mainly due to differences in the average salary.
The average salary level used as a basis for social insurance contributions to calculate pensions and one-time allowances is specified in Article 72 of the Law on Social Insurance.
Accordingly, employees who are subject to the state-regulated salary regime and have paid social insurance for the entire time under this salary regime, the average salary used as the basis for social insurance contributions of the number of years of social insurance contributions before retirement is calculated as follows:
Starting to participate in social insurance before January 1, 1995, the average salary used as a basis for social insurance contributions for the last 5 years before retirement is calculated.
Starting to participate in social insurance in the period from January 1, 1995 to December 31, 2000, the average salary used as the basis for social insurance contributions for the last 6 years before retirement is calculated.
Starting to participate in social insurance in the period from January 1, 2001 to December 31, 2006, the average salary used as the basis for social insurance contributions for the last 8 years before retirement is calculated.
Starting to participate in social insurance in the period from January 1, 2007 to December 31, 2015, the average salary used as a basis for social insurance contributions for the last 10 years before retirement is calculated.
Starting to participate in social insurance from January 1, 2016 to December 31, 2019, the average salary used as a basis for social insurance contributions for the last 15 years before retirement is calculated.
Starting to participate in social insurance from January 1, 2020 to December 31, 2024, the average salary used as the basis for social insurance contributions for the last 20 years before retirement is calculated.
Starting to participate in social insurance from January 1, 2025 onwards, the average salary used as the basis for social insurance contributions for the entire period of social insurance contributions is calculated.
Employees who have paid social insurance for the entire time according to the salary regime decided by the employer shall calculate the average salary as the basis for paying social insurance for the entire time.
Employees who have both social insurance contribution periods subject to the state-regulated salary regime and have social insurance contribution periods according to the salary regime decided by the employer shall calculate the average salary as the basis for social insurance contributions for the general periods, in which the contribution period according to the state-regulated salary regime is calculated as the average salary as the basis for social insurance contributions according to the provisions of Clause 1 of this Article.
Thus, in normal conditions, Ms. Bui's monthly pension will be calculated in the formula according to Article 66 of the Law on Social Insurance. The average pension calculation level (before 1995) will be the pension level for the last 5 years before retirement.
