Employees when participating in compulsory social insurance (SI) will receive pensions when they meet the conditions according to the provisions of the 2024 Social Insurance Law. The monthly pension level is calculated based on the formula:
Monthly pension level = Pension benefit rate × Average monthly salary for social insurance contributions
Pension benefit rate according to social insurance contribution period
For male workers: If they have paid social insurance for 20 years, the benefit rate is 45%. Then, each additional year of contribution is added 2%, up to 75%.
For female workers: If contributing to social insurance for 15 years, the benefit rate is 45%, each year contributing an additional 2%, maximum 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, corresponding to 15 years, then each additional year of contribution is calculated at 1%.
Premature retirement due to reduced working capacity
Workers who retire early due to reduced labor capacity will have their pension benefit rate reduced compared to the standard retirement age. Specifically:
Each year of early retirement, the pension rate is deducted 2%.
In case of retirement 6 months early, no deduction.
Pensions from 6 months to less than 12 months, reduced by 1%.
This helps ensure the rights of employees who retire early, but also encourages considering the retirement time to optimize the pension level received.
Calculating pensions according to international treaties
For workers who have paid social insurance according to international conventions, but the contribution period in Vietnam is less than 15 years, each year of contribution will be calculated at 2.25% of the average salary level as the basis for social insurance contributions.
Early retirement due to reduced labor capacity will directly affect the pension benefit rate. Employees need to carefully consider the time of social insurance contribution and retirement age to ensure long-term benefits.
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