Paying social insurance for 32 years, how to calculate pension from 2025?

(Dan Tri) - From July 1, 2025, employees who reach retirement age and have paid social insurance for 15 years or more will receive a pension. However, the excess payment period will only be calculated at a maximum of 75% of the insured salary.

How to calculate pension from 2025

The Social Insurance Law 2024 stipulates that employees who reach retirement age and have paid compulsory social insurance for at least 15 years upon retirement are entitled to receive a pension. The Social Insurance Law 2024 takes effect from July 1, 2025.

According to the draft Decree detailing and guiding the implementation of a number of articles of the Law on Social Insurance on compulsory social insurance, the monthly pension of employees is calculated by multiplying the monthly pension rate by the average salary used as the basis for social insurance contributions.

Along with that, the draft circular of the Ministry of Labor, War Invalids and Social Affairs also gives specific examples on how to calculate monthly pension levels.

Pension eligibility conditions will change from July 1, 2025 (Illustration: Ngo Hung).

Specifically, in the case of Ms. A., 55 years old, working under normal conditions, with a 61% reduction in working capacity, having paid compulsory social insurance for 32 years and 4 months, she will retire and receive a pension from October 1, 2025. Ms. A's pension rate is calculated as follows:

- The first 15 years are calculated at 45%;

- From the 16th year to the 32nd year is 17 years, calculate: 17 x 2% = 34%;

- 4 months is considered as half a year, add: 0.5 x 2% = 1%

- The total of the above ratios is: 45% + 34% + 1% = 80% (only calculate up to 75%);

Ms. A retired 1 year and 8 months before the prescribed age (56 years and 8 months), so the pension rate was reduced: 2% + 1% = 3%;

Thus, Ms. A's monthly pension rate is 75% - 3% = 72%.

To compensate for this, because Ms. A. has a social insurance payment period of 2 years and 4 months higher than the maximum of 30 years, in addition to her pension, she is also entitled to a one-time subsidy of: 2.5 years x 0.5 times the average salary used as the basis for social insurance payment.

Enjoy a higher pension

Regarding one-time pension benefits, the draft circular clearly states that in cases where employees are eligible for pension benefits but continue to pay social insurance, the one-time pension benefit level upon retirement is calculated as follows:

Each year of social insurance payment exceeding 35 years for men and 30 years for women before reaching retirement age as prescribed is calculated at 0.5 times the average salary used as the basis for social insurance payment.

Each year of social insurance payment exceeding 35 years for men and 30 years for women after reaching retirement age as prescribed is calculated as 2 times the average salary used as the basis for social insurance payment.

New regulations on receiving one-time benefits upon retirement (Photo: Vietnam Social Insurance).

The Ministry of Labor, Invalids and Social Affairs guides the calculation with an example: Mr. D. works under normal working conditions, and at the time of retirement age, he has paid social insurance for 38 years. However, Mr. D. does not retire to receive a pension but continues to work and pay social insurance for 3 more years before retiring to receive a pension.

When he retired and received his pension, Mr. D. had a total of 41 years of social insurance contributions. Thus, in addition to his pension, Mr. D. is also entitled to a one-time benefit, calculated as follows:

- 3 years of social insurance payment is more than 35 years before retirement age, each year is equal to 0.5 times the average salary used as the basis for social insurance payment: 3 years x 0.5 = 1.5.

- 3 years of social insurance payment is more than 35 years after retirement age, each year is equal to 2 times the average salary used as the basis for social insurance payment: 3 years x 2 = 6.

Thus, Mr. D. is entitled to a one-time pension upon retirement equal to 7.5 (1.5 + 6) times the average salary used as the basis for social insurance contributions.

Source: https://dantri.com.vn/an-sinh/dong-bao-hiem-xa-hoi-32-nam-tinh-luong-huu-ra-sao-tu-2025-20241125171341290.htm