According to Hanoi Social Insurance, the monthly pension of employees is calculated according to the following formula: Monthly pension level = Monthly pension rate x Average monthly salary for social insurance contribution.
In which, the monthly pension rate of employees eligible for pension is calculated as follows:
For female employees retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contributions; then for each additional year of social insurance contributions, an additional 2% is calculated; the maximum rate is 75%.
Thus, female workers need 30 years of social insurance contributions to receive the maximum pension (75%).
For male employees retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to the number of years of social insurance contributions according to the table below, then for each additional year of social insurance contributions, an additional 2% is calculated; the maximum level is 75%.
Thus, male workers need 35 years of social insurance contributions to receive the maximum pension (75%).
Thus, currently, if workers want to receive a pension at the maximum rate (75%), they need to meet the pension eligibility conditions and must pay social insurance for at least 30 years for women and 35 years for men.
In addition, for employees receiving pension before the prescribed age due to reduced working capacity, the monthly pension rate (%) will also be calculated as above, but for each year of retirement before the prescribed age, it will be reduced by 2%.
Pursuant to Article 169 of the 2019 Labor Code, employees who ensure the conditions on social insurance payment period as prescribed by the law on social insurance are entitled to receive pension when reaching retirement age.
In 2024, the retirement age under normal working conditions for male workers will be 61 years old, and for female workers it will be 56 years and 4 months.
According to the Ministry of Labor, War Invalids and Social Affairs, in the period 2016 - 2021, there will be an average of about 110,000 new pensioners per year.
Of these, 435,000 people are entitled to a one-time pension upon retirement (accounting for 65.8%). According to the Ministry of Labor, War Invalids and Social Affairs, this shows that for every 3 retirees, about 2 people have the maximum pension rate - 75% of the average monthly salary paid for social insurance.
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