Reader Nguyen Anh Minh (40 years old, Hanoi) asked: "I am 40 years old this year and want to receive a pension of 5 million VND/month when I retire, how much do I currently need to pay voluntary social insurance (SI) each month?
How long do I have to pay? In case the participant unfortunately dies, how are relatives' rights resolved?
Regarding this issue, based on the 2024 Law on Social Insurance, it is stipulated as follows:
Conditions for enjoying a pension:
The retirement age is determined according to the provisions of the Labor Code, implemented according to the roadmap of gradually increasing each year; accordingly, by 2028, the retirement age for male workers is 62 years old and by 2035, the retirement age for female workers is 60 years old in normal working conditions and having 15 years or more of social insurance participation.
How to determine a pension level
The monthly pension level is determined according to the formula:
Pension = Pension benefit rate × Average monthly income used as basis for social insurance contributions.
a) Average salary level for social insurance contributions
For voluntary social insurance participants, the average salary level is calculated based on the entire contribution period, adjusted according to the inflation coefficient:
Average = Total (closing option × adjustment coefficient) / total years of closing.
The case of paying voluntary social insurance for 20 years to receive a pension is about 5 million VND/month.
The pension benefit rate corresponding to 20 years of social insurance contributions according to the provisions of the 2024 Social Insurance Law: 55% for female workers, 45% for male workers.
- For female workers + Social insurance contribution option: 6,300,000 VND/month
+ Monthly voluntary social insurance contribution level: 1,386,000 VND (equal to 22% of the selected contribution level), after being supported by the State for a maximum of 120 months (according to the current support level), the actual contribution amount is: 1,320,000 VND/month.
Average salary for social insurance contributions: 6,300,000 × 1,4505 = 9,138,150 VND
Expected pension: 55% × 9.138.150 ≈ 5.026. 000 VND/month
- For male workers + Social insurance premium option: 7,700,000 VND/month
+ Monthly voluntary social insurance contribution level: 1,694,000 VND (equal to 22% of the selected contribution level), after being supported by the State for a maximum of 120 months (according to the current support level), the actual contribution amount is: 1,628,000 VND/month.
Average salary for social insurance contributions: 7,700,000 × 1,4505 = 11,168,500 VND;
Expected pension: 45% × 11. 168,500 ≈ 5,026,000 VND/month
Note:
The adjustment coefficient of 1,4505 mentioned above is only hypothetical, determined based on the application of the method of calculating the average adjustment coefficient of salary and monthly income already contributed to social insurance according to the guidance of Vietnam Social Security, in order to estimate the expected pension level for cases participating in social insurance for about 20 years.
The actual pension level is determined according to the provisions of law and the adjustment coefficient is issued by the competent authority at the time of settlement of the regime.
Health insurance benefits
When voluntary social insurance participants receive pensions, they are issued health insurance cards with benefit code 3 (benefit level 95%).
Benefits of relatives when participants unfortunately die
* Cases where social insurance has been paid for 60 months or more (not yet receiving pension)
Relatives entitled to: - One-time funeral allowance and survivor's allowance, calculated according to the actual time and social insurance contribution level.
* Cases of death of pensioners (for example, at the age of 70)
Relatives entitled to:
- Funeral allowance and one-time death gratuity.
Thus, according to the above assumption, to have a pension level of about 5,000. 000 VND/month, female workers must pay an amount of about 1,320,000 VND to 1,386,000 VND/month and male workers must pay an amount of about 1,628,000 VND to 1,694,000 VND/month.
Participating in social insurance, especially voluntary social insurance, not only aims to ensure stable income and health care in old age, but is also a long-term social security mechanism for the whole family, even in cases where participants unfortunately die.
