Changes in retirement age, pension calculation in 2024 for teachers

The retirement age of employees in normal working conditions is adjusted according to the roadmap prescribed in Article 169 of the 2019 Labor Code, which is 62 years old for male employees in 2028 and 60 years old for female employees in 2035.

Accordingly, the retirement age in 2023 for male teachers is 60 years and 9 months, and for female teachers is 56 years. From 2024, the retirement age will increase by 3 months for male teachers and 4 months for female teachers each year. Thus, the retirement age for teachers is 61 years for male teachers and 56 years and 4 months for female teachers.

Illustration photo.

In particular, employees who are teachers can retire at a lower age than the above regulations but not more than 5 years older if they are in a case of reduced working capacity; working in an area with particularly difficult socio-economic conditions according to Clause 3, Article 169 of the Labor Code.

Pursuant to Article 56 of the Law on Social Insurance 2014, teachers' pensions are calculated according to the following formula:

Monthly pension = Benefit rate x Average monthly salary for social insurance contribution.

For male workers, paying social insurance for 20 years will receive 45%. After that, each additional year will be calculated by adding 2%. The maximum benefit is 75%.

For female workers, paying social insurance for 15 years will receive 45%. After that, each additional year will be calculated by adding 2%. The maximum benefit is 75%.

In case of early retirement due to labor loss, the benefit rate will be deducted, each year of retirement will be deducted 2% from the total benefit rate.

For example, male teacher A has paid compulsory social insurance for 25 years. When this teacher retires, the pension rate will be as follows:

20 years of social insurance payment enjoy 45%.

The remaining 5 years of social insurance payment will receive 5 x 2% = 10%.

Total pension rate of teacher A = 45% + 10% = 55%.

Suppose the average monthly salary for social insurance of teacher A is 9 million VND/month. The compulsory social insurance contribution is calculated based on the monthly salary of the employee. This includes the contribution to the pension fund, death benefit fund; sickness and maternity fund; and occupational accident and disease fund.

Accordingly, based on the employee's salary, the compulsory social insurance contribution rate is 32%. Of which, the employee contributes 10.5% of the salary, the employer contributes 21.5% of the monthly salary fund for social insurance.

Thus, assuming the average monthly salary for social insurance is 9 million VND/month, Mr. A's pension is = 55% x 9 million VND = 4.95 million VND/month.

Source: https://www.congluan.vn/nhung-thay-doi-ve-tuoi-nghi-huu-cach-tinh-luong-huu-nam-2024-cua-giao-vien-post275609.html