According to the provisions of the 2024 Law on Social Insurance, the monthly pension level of employees is calculated based on the social insurance contribution period and the average salary level used as a basis for contribution.
Based on Article 66 of this law, the benefit level is determined as follows:
Female workers: Receive 45% of the average salary level used as the basis for social insurance contributions corresponding to 15 years of contribution; then each additional year of contribution is calculated an additional 2%, up to 75%.
Male workers: Benefit 45% corresponding to 20 years of contribution; then each additional year of contribution is calculated an additional 2%, up to 75%.
In case men have contributions from 15 years to less than 20 years, the benefit level is 40% corresponding to 15 years, then each year increases by 1%.
For some occupations and jobs that are particularly specific in the armed forces, the benefit level is regulated by the Government and guaranteed by the state budget.
For employees who meet the conditions according to Article 65, if they retire before the prescribed age, for each year of early retirement, the pension benefit rate will be reduced by 2%.
However, the law also states:
If the early retirement period is less than 6 months: there is no reduction in the percentage of pension benefits.
If taking leave early from 6 months to less than 12 months: reduced by 1%.
From 1 year or more: each year reduced by 2%.
Thus, employees who retire early in less than 6 months compared to the prescribed age will not be deducted from the pension benefit rate.
In addition, in case a worker has paid social insurance according to international treaties of which Vietnam is a member but the contribution period in Vietnam is less than 15 years, each year of contribution is calculated at 2.25% of the average salary as the basis for contribution.
The government will further detail the level of enjoyment and conditions for enjoying pensions according to the new law.
