The Social Insurance Law 2024, which has just been passed by the National Assembly and will take effect from July 1, 2025, stipulates that employees who have paid social insurance for at least 15 years and reach retirement age will receive a monthly pension. Vietnam Social Security said that the above regulation applies to those who have participated in social insurance before the Social Insurance Law 2024 takes effect. The settlement of regimes is determined according to the provisions of the law on social insurance at the time of receiving the regime, unless otherwise provided by this law.

The regulation of paying social insurance for 15 years to receive pension creates opportunities for late participants in social insurance. Illustration: Le Anh Dung

Early retirement requires at least 20 years of social insurance contributions. The 2024 Social Insurance Law also stipulates that if an employee retires early due to reduced working capacity, he/she must have paid compulsory social insurance for at least 20 years and is entitled to a pension if he/she falls into one of the following cases:

Clause 2, Article 169 of the 2019 Labor Code stipulates: The retirement age of employees in normal working conditions is adjusted according to the roadmap until reaching 62 years of age for male employees in 2028 and 60 years of age for female employees in 2035. From 2021, the retirement age of employees in normal working conditions is 60 years and 3 months for male employees and 55 years and 4 months for female employees; after that, each year it increases by 3 months for male employees and 4 months for female employees.

Being at least 5 years younger than the age specified in Clause 2, Article 169 of the Labor Code and having a reduced working capacity of 61% to less than 81%. Being at least 10 years younger than the age specified in Clause 2, Article 169 of the Labor Code and having a reduced working capacity of 81% or more. Having worked for 15 years or more in a particularly arduous, toxic, or dangerous occupation or job on the list of particularly arduous, toxic, or dangerous occupations or jobs issued by the Minister of Labor, Invalids and Social Affairs and having a reduced working capacity of 61% or more. Both male and female workers have paid social insurance for 15 years, but the pension rates are different. According to the Social Insurance Law 2024, from July 1, 2025, the pension rate is regulated as follows: For female workers, it is calculated at 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, up to a maximum of 75%. For male workers, the pension rate is calculated at 45% of the average salary used as the basis for social insurance payment corresponding to 20 years of social insurance payment. Then for each additional year of payment, an additional 2% is calculated, up to a maximum of 75%. In the case of male workers who have paid social insurance for 15 years but less than 20 years, the monthly pension rate is equal to 40% 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 1%. In case of early retirement due to reduced working capacity, each year of retirement before the prescribed age will be reduced by 2%. In case of early retirement under 6 months, the pension percentage will not be reduced, from 6 months to under 12 months, it will be reduced by 1%. According to labor experts, the regulation of reducing the social insurance payment period to 15 years to receive pension is appropriate and beneficial for workers. This regulation is not for young workers but creates opportunities for the elderly to participate in social insurance late but still meet the conditions when retiring, or those who participate intermittently can accumulate to receive pension. Former Deputy Minister of Labor, Invalids and Social Affairs Pham Minh Huan said that when reducing the social insurance payment period to 15 years to receive pension, due to the short social insurance payment period and low payment level, the pension will be low. If it is too low to live, the State needs to study and have support policies to ensure the minimum living standard for retirees. Although the salary of those who have paid social insurance for 15 years may be lower than those who have paid for a long time. However, these cases were previously not eligible for pensions and should receive social insurance in one lump sum, but now they will have the opportunity to receive monthly pensions. “For this group of people, even though the pension may be more modest than those who have paid social insurance for a long time, the monthly pension is stable and periodically adjusted by the State. During the period of receiving pensions, the Social Insurance Fund will pay for health insurance, contributing to better ensuring their life when they retire,” said Mr. Huan.

Vietnamnet.vn

Source: https://vietnamnet.vn/quy-dinh-moi-ve-muc-luong-huu-cua-nguoi-lao-dong-khi-dong-bhxh-15-nam-2302840.html