Retired from public service and then transferred to private sector, how to calculate pension?

The above question about how to calculate pension for employees who work for the state and then switch to private sector was raised by Ms. Le Thi Yen, a reader of Thanh Nien Newspaper.

According to Ho Chi Minh City Social Insurance (SI) , currently monthly pension level = Monthly pension rate (%) x Average monthly salary for social insurance contribution.

In particular, the monthly pension rate is determined to be 45% for male workers who have paid social insurance for 20 years and female workers who have paid social insurance for 15 years. After that, for each additional year of social insurance payment, 2% will be added but not exceeding 75%.

The average monthly salary for social insurance payment = ( Total monthly salary for social insurance payment according to the salary regime prescribed by the State + Total monthly salary for social insurance payment when following the private salary regime) / Total number of months of social insurance payment.

In 2023, the retirement age for male workers will be 60 years and 9 months, and for female workers it will be 56 years old.

Monthly salary for social insurance payment according to state salary

Ho Chi Minh City Social Insurance notes that if employees pay social insurance based on private salary, the average monthly salary for social insurance payment for the entire payment period will be calculated.

If the employee pays social insurance according to the state salary coefficient, the total monthly salary for social insurance payment = Total number of months of social insurance payment in that period x Average salary for social insurance payment. In which, the average salary according to the periods is as follows:

Firstly, for employees who started participating in social insurance before January 1, 1995, the average salary = Total monthly salary for social insurance contributions of the last 5 years (60 months) before leaving work/60 months.

Second, for employees who started participating in social insurance between January 1, 1995 and December 31, 2000, the average monthly salary for social insurance contributions of the last 6 years (72 months) before leaving work/72 months.

Third, for employees who started participating in social insurance between January 1, 2001 and December 31, 2006, the average salary = Total monthly salary for social insurance contributions of the last 8 years (96 months) before leaving work/96 months.

Fourth, for employees who started participating in social insurance between January 1, 2007 and December 31, 2015, the average salary = Total monthly salary for social insurance contributions of the last 10 years (120 months) before leaving work/120 months.

Fifth, for employees who started participating in social insurance from January 1, 2016 to December 31, 2019, the average salary = Total monthly salary for social insurance contributions of the last 15 years (180 months) before leaving work/180 months.

Sixth, for employees who start participating in social insurance from January 1, 2020 to December 31, 2024, the average salary = Total monthly salary for social insurance contributions of the last 20 years (240 months) before leaving work/240 months.

Seventh, for employees who start participating in social insurance from January 1, 2025 onwards, the average salary = Total monthly salary for social insurance contributions of the entire contribution period/Total number of months of social insurance contributions.

Workers handle procedures at the Social Insurance agency

Thus, in the case of the reader's question, the total salary for social insurance contribution according to the state salary coefficient in the period 2002 - 2011 = (Total average salary from 2003 - 2011/96 months) x 108 months. This result is called A.

The period of private social insurance payment is calculated for the entire payment period. This result is called B.

Therefore, the average monthly salary for social insurance payment up to now = (A + B)/252 months. This result is called C for short.

If your father reaches retirement age in 2023, the pension % = 47%. So the pension amount = C x 47%.

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