Vietnam Social Security said that according to the Social Insurance Law 2024 effective from July 1, 2025, the monthly pension of employees who meet the conditions specified in Article 64 of this Law is calculated as follows:

For female workers, it is 45% of the average salary used as the basis for social insurance contributions 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%.

For male workers, it is 45% of the average salary used as the basis for social insurance contributions corresponding to 20 years of social insurance participation, then for each additional year of contribution, 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 social insurance payment, corresponding to 15 years of social insurance payment, then for each additional year of payment, 1% is added.

Thus, from July 1, 2025, people who have paid social insurance for 15 years will receive a pension at a rate of 45% for women and 40% for men.

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Despite paying social insurance for the same 15 years, the pension rate for men is lower than that of women. Illustration: Hoang Minh

A labor and salary expert said that although male workers have a lower pension rate than female workers when they have paid social insurance for 15 years, reducing the payment period to 5 years (compared to 20 years under the current Social Insurance Law) will help workers have the opportunity to receive monthly pensions. The pension level is also adjusted according to the consumer price index.

In addition, when receiving pension, employees will have their health insurance paid by the Social Insurance Fund, contributing to ensuring a better life in old age.

One-time benefit before retirement

According to the Social Insurance Law 2024, male workers with more than 35 years of social insurance contributions and female workers with more than 30 years of social insurance contributions will receive a one-time allowance in addition to their pension when they retire.

The one-time benefit level for each year of higher contribution is equal to 0.5 times the average salary used as the basis for social insurance contribution for each year of higher contribution up to the retirement age as prescribed by law. In this case, the one-time benefit level is the same as the current regulations (Social Insurance Law 2014).

In case an employee has met the conditions for receiving a pension according to regulations but continues to pay social insurance, the subsidy level is equal to 2 times the average salary used as the basis for paying social insurance for each year of payment higher than the prescribed number of years, from the time after reaching the retirement age according to regulations of law until the time of retirement.

According to statistics from Vietnam Social Security, in the period 2016-2022, the whole country has resolved pensions for nearly 763,000 people, however, only more than 55% of people achieved the pension rate of 75%.

Although the pension rate is high, the salary used as the basis for compulsory social insurance contributions to calculate pensions is not high, so the average pension level of current pensioners has not improved much.

By the end of 2023, the average salary for social insurance contributions of employees in the administrative and career group (state sector) will be 6.936 million VND, and that of employees in the enterprise and cooperative sector will be 6.38 million VND, a difference of about 9%.