What is the pension level after 15 years of social insurance payment?

Compared with the current Law on Social Insurance, the draft revised Law on Social Insurance has many new points related to the retirement regime.

Reduce the minimum number of years of social insurance contributions

According to the revised draft Law on Social Insurance, employees who have paid social insurance for 15 years or more when retiring will be entitled to pension if they reach the prescribed retirement age.

According to the law drafting agency, this creates an opportunity for those who participate in social insurance late (starting at 45-47 years old) or do not participate continuously and when reaching retirement age, still do not accumulate enough 20 years of social insurance contributions to receive a monthly pension.

Regarding pension levels, the draft law stipulates that the monthly pension level of the specified subjects is calculated at 45% of the average salary used as the basis for social insurance contributions, corresponding to 20 years of social insurance contributions for male workers and 15 years of social insurance contributions for female workers.

After that, for each additional year of payment, an additional 2% is calculated, up to a maximum of 75%.

Proposal to reduce the minimum number of years of social insurance contributions required to receive a pension (Illustration: Son Nguyen).

In case of eligible male workers with social insurance payment period from 15 years to less than 20 years, each year of payment corresponds to a pension rate of 2.25%.

Thus, male workers who pay social insurance for 15 years will receive a pension rate of 33.75%.

In case an employee is eligible for pension and has a period of social insurance payment according to the provisions of the International Treaty of which Vietnam is a member but the period of social insurance payment in Vietnam is less than 15 years, this period will be calculated corresponding to the pension rate of 2.25% for each year of payment.

The monthly pension of a person eligible for pension due to reduced working capacity is calculated as above, then for each year of early retirement, the pension is reduced by 2%. In case of early retirement of 6 months, the pension percentage is not reduced, from 6 months to less than 12 months, the pension is reduced by 1%.

Pensions are adjusted based on the increase in the consumer price index in accordance with the capacity of the state budget and the Social Insurance Fund. The Government shall stipulate the time, subjects and levels of pension adjustment.

Lump sum pension upon retirement

The draft revised Law on Social Insurance also stipulates a one-time pension upon retirement. Accordingly, those who have paid insurance for more than 35 years for male workers and 30 years for female workers will receive a one-time pension upon retirement.

The social insurance payment period is longer than the regulation, people also receive a one-time subsidy (Photo: XC).

The one-time benefit for each year of social insurance contribution is higher than 0.5 times the average salary used as the basis for social insurance contribution up to the retirement age as prescribed by law; equal to 2 times the average salary used as the basis for social insurance contribution from after the time of reaching the retirement age as prescribed by law until the time of retirement.

According to statistics, in the 7 years of implementing the Law on Social Insurance in 2014, there were over 476,000 people receiving one-time social insurance benefits who had participated for over 10 years and were aged 40 and over; there were over 53,000 people who were past retirement age and had to receive one-time social insurance benefits because they had not paid 20 years of compulsory social insurance.

In addition, there are over 20,000 people who, upon reaching retirement age, do not have enough time to pay, so they have to pay at once for the remaining time to receive their salary.

Source: https://dantri.com.vn/an-sinh/dong-bao-hiem-xa-hoi-15-nam-se-co-luong-huu-muc-huong-quy-dinh-ra-sao-20240524210522033.htm