Pension benefits according to Social Insurance Law 2014
Many people are wondering how employees who have paid social insurance for 25 years and retire in 2024 will receive a different pension than employees who have paid social insurance for 25 years and retire after July 1, 2025.
According to Article 56 of the Law on Social Insurance 2014, from January 1, 2018, the monthly pension of eligible employees is calculated at 45% of the average monthly income of social insurance contributions and corresponding to the number of years of social insurance contributions as follows: Male employees retiring in 2018 are 16 years, in 2019 are 17 years, in 2020 are 18 years, in 2021 are 19 years, from 2022 onwards are 20 years; Female employees retiring from 2018 onwards are 15 years. After that, for each additional year, employees specified in Point a and Point b of this Clause will be calculated an additional 2%, up to a maximum of 75% of the monthly salary of social insurance contributions.
In addition, according to Decree 115/2015/ND-CP and Decree 134/2015/ND-CP, for female employees retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contributions. After that, for each additional year of social insurance contributions, an additional 2% is calculated, up to a maximum of 75%.
People who have paid social insurance for 25 years will receive a monthly pension of no more than 75% of the monthly salary paid for social insurance.
Thus, female workers retiring in 2024, if they have paid 25 years of social insurance, will receive a pension at a rate of 65% of the monthly salary paid for social insurance.
For male workers, the monthly pension rate is calculated at 45% corresponding to 20 years of social insurance contributions. After that, for each additional year of social insurance contributions, an additional 2% is calculated, up to a maximum of 75%.
Thus, male workers retiring in 2024, if they have paid 25 years of social insurance, will receive a pension at a rate of 55% of the monthly salary paid for social insurance.
Calculation method according to Social Insurance Law 2024
Article 66 of the Social Insurance Law 2024 stipulates the monthly pension level (effective from July 1, 2025), specifically:
1. The monthly pension level of eligible subjects specified in Article 64 of this Law is calculated as follows:
a) For female employees, it is 45% of the average salary used as the basis for social insurance contributions as prescribed in Article 72 of this law, corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
b) For male employees, it is 45% of the average salary used as the basis for social insurance contributions as prescribed in Article 72 of this law, corresponding to 20 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
In case male employees have paid social insurance for 15 years but less than 20 years, the monthly pension is equal to 40% of the average salary used as the basis for paying social insurance as prescribed in Article 72 of this law, corresponding to 15 years of paying social insurance, then for each additional year of paying, 1% is added.
According to Article 99 of the Social Insurance Law 2024, the monthly pension level for eligible subjects is as follows:
a) For female employees, it is 45% of the average income used as the basis for social insurance contributions as prescribed in Article 104 of this law, corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
b) For male workers, it is 45% of the average income used as the basis for social insurance contributions as prescribed in Article 104 of this law, corresponding to 20 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
The 2024 Social Insurance Law increases the opportunity for social insurance participants to receive pensions by reducing the minimum number of years of social insurance contributions required to receive pensions from 20 years to 15 years (Photo: GVP).
In case male employees have paid social insurance for 15 years but less than 20 years, the monthly pension is equal to 40% of the average income used as the basis for paying social insurance as prescribed in Article 104 of this law, corresponding to 15 years of paying social insurance, then for each additional year of paying, 1% is added.
Thus, from July 1, 2025, employees who have paid social insurance for 25 years will receive pension as follows:
Female workers: Monthly pension is equal to 45% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions. Each year thereafter, an additional 2% is received until reaching the maximum level of 75%. From then on, female workers who have paid social insurance for 25 years will receive a pension at a rate of 65%.
Male workers: Monthly pension is equal to 45% of average salary used as basis for social insurance contribution corresponding to 20 years of social insurance contribution. From there, male workers who have paid social insurance for 25 years will receive a pension at a rate of 55%.
Basically, the 2024 Social Insurance Law has a major change that increases the opportunity for social insurance participants to receive pensions by reducing the condition on the minimum number of years of social insurance contributions to receive pensions from 20 years to 15 years.
Source: https://vtcnews.vn/dong-bhxh-25-nam-duoc-huong-luong-huu-theo-luat-bhxh-moi-the-nao-ar910310.html
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