Employees who retire from 2025 will be entitled to pension 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.
Specifically, female workers are paid 45% of the average salary as the basis for social insurance contributions 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%. Notably, the Social Insurance Law 2024 for the first time adds a method of calculating for male workers with from 15 to less than 20 years of social insurance contributions, with a starting rate of 40% and an increase of 1% per year.
The general formula for calculating pensions is as follows:
Monthly pension = Pension rate x Average monthly salary for social insurance contributions.
The average monthly salary for social insurance contributions is calculated based on the number of years the employee has participated in insurance, specifically:
Before January 1, 1995: the average of the last 5 years;
From 1995 to 2000: average of the last 6 years;
From 2001 to 2006: average of the last 8 years;
From 2007 to 2015: the average of the last 10 years before retirement.
Thus, female workers who retire in 2025, if they have paid 30 years of social insurance, will receive a pension at the rate of 75% of their monthly salary for social insurance contributions.
For male workers, if they have paid 30 years of social insurance, they will receive a pension at a rate of 65% of the monthly salary for social insurance contributions.
This new 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.
