Employees who retire early under Decree 178 of the Government will not have their pension rate deducted for each year of early retirement. However, whether or not an employee is entitled to the maximum rate (75%) depends on the time of participation in social insurance.
VietNamNet newspaper received questions from employees about the regulations on early retirement according to Decree 178 of the Government.
Specifically, Mr. Nguyen Van H. in Hoang Mai (Hanoi) asked: He is a civil servant, born in 1967, has participated in social insurance for 32 years and 6 months. He is eligible for early retirement according to the policy of streamlining the apparatus of the unit he is working for. If he retires early this year, will he receive the maximum benefit of 75%? When he retires early, will his pension rate be deducted?
Regarding this issue, a representative of Hanoi Social Security said that according to Decree 135/2020, the retirement age for male workers born in 1967 is 62 years old. Therefore, if Mr. H. retires this year, he will retire 4 years early.
Regarding the pension rate, according to regulations, to receive the maximum pension of 75%, male workers must participate in social insurance for 35 years. In the case of Mr. H. who has only participated for 32 years and 6 months, his benefit rate is calculated as follows:
The first 20 years are calculated at 45%, from year 21 to year 32, each year adds 2% to 24%, the remaining 6 months add 1%. Thus, the pension rate Mr. H. receives for 32 years and 6 months of work is 45% + 24% = 1% = 70%.
Because Mr. H. retires under the regime prescribed in Decree 178/2024 of the Government, in addition to the early retirement regime as prescribed, Mr. H. will not have his pension rate deducted for the years of early retirement (2% deducted for each year of early retirement).
According to the representative of Hanoi Social Insurance, the Law on Social Insurance stipulates: The pension rate is based on the retirement age and the number of years of participating in social insurance.
+ Calculated by retirement age: Each year of early retirement reduces the pension rate by 2%. In case the early retirement period is less than 6 months, the pension rate will not be reduced. From 6 months to less than 12 months, the pension rate will be reduced by 1%.
+ Calculated based on the time of social insurance payment up to the time of retirement (for female workers, it is 45% of the average salary used as the basis for social insurance payment corresponding to 15 years of social insurance payment, then for each additional year of payment, an additional 2% is calculated; for male workers, it is 45% of the average salary corresponding to 20 years of social insurance payment, then for each additional year of payment, an additional 2% is calculated, and both have a maximum of 75%).
Thus, early retirement when streamlining the apparatus will not be reduced by 2% for each year of early retirement, and the monthly pension level will still be based on the time of social insurance contribution.
To receive a pension at a maximum rate of 75%, male workers must pay social insurance for 35 years, and female workers must pay social insurance for 30 years.
People who retire early under the streamlined system will receive their pension immediately after retirement, without having to wait until they reach retirement age to receive their pension.
Source: https://vietnamnet.vn/lao-dong-nghi-som-theo-nghi-dinh-178-muc-luong-huu-the-nao-2373329.html
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