If a 56-year-old male employee retires in 2024, will his pension benefit be deducted?

For each year of early retirement, 2% of the salary rate will be deducted

Mr. Duc Thanh was born in October 1968. Due to poor health, he continues to working so he wants to retire early.

Mr. Thanh asked: “When will I be able to retire and how much is my monthly early retirement pension?”.

According to Vietnam Social Insurance Conditions for receiving early age pension for male workers are specified in Article 169, Article 219 of the Ministry Labor Law 2019 and Decree No. 135/2020/ND-CP regulate the retirement age.

Specifically, from 2021, the retirement age of male employees who have paid social insurance for 20 years under working conditions Normal employment is 60 years and 3 months. Then each year it increases by 3 months until reaching 62 years old in 2028.

Thus, in 2024, the prescribed retirement age for male workers is 61 years old. As of October 2024, Mr. Thanh is 56 years old and has not yet reached the prescribed retirement age. However, he can retire early if he meets all the prescribed conditions.

If he retires before October, Mr. Thanh is more than 5 years short of the prescribed retirement age. To retire, he must fall into one of the two cases eligible for early retirement up to 10 years.

If he retires after October, Mr. Thanh is 5 years younger than the prescribed retirement age, he must fall into one of the four cases eligible for early retirement of up to 5 years.

Lao động nam 56 tuổi, năm 2024 nghỉ hưu có bị trừ mức hưởng lương hưu?

According to Vietnam Social Insurance, salary The employee’s monthly pension is calculated by multiplying the monthly pension rate multiplied by the average monthly salary paid for social insurance.

The pension rate for male employees retiring from 2022 onwards is calculated at 45% corresponding to 20 years of social insurance payment. Then, for each additional year of social insurance payment, an additional 2% is calculated, the maximum level is 75%.

If you meet the conditions for early retirement. Employees are entitled to pension right at the time of retirement. However, in case the employee retires early, 2% of the pension rate will be deducted for each year of retirement before the prescribed retirement age.

In case of no pension deduction when retiring early

If Mr. Thanh meets the conditions for early retirement, he will receive his pension right at the time of retirement. However, for each year of early retirement, Mr. Thanh’s pension benefit will be reduced by 2% except for the following 9 cases.

According to Article 54 of the 2014 Law on Social Insurance, amended and supplemented at Point a, Clause 1, Article 219 of the Ministry The 2019 Labor Law has 4 cases in which employees can retire early when they meet the prescribed conditions but the pension rate will not be deducted.

The first is for employees with 15 years of experience. working in a job that is heavy, hazardous, dangerous, or especially heavy, toxic, or dangerous on the list issued by the Ministry of Labor, War Invalids, and Social Affairs.

Second is an employee who has worked in the workplace for 15 years. areas with extremely difficult socio-economic conditions, including working time in a place with a regional allowance coefficient of 07 or more before January 1, 2021.

Third is people workers with 15 years of working in coal mining in underground mines.

Fourth is people infected with HIV due to occupational accidents while performing assigned tasks.

In addition, there are 5 groups of civil servants and public employees who are subject to downsizing according to Decree 29/2023/ND-CP and can also retire early and enjoy pensions right at the time of retirement without deduction of the pension rate.

First, the downsizing group has a maximum age of 5 years lower and a minimum of 2 years lower than the retirement age specified in Appendix II of Decree No. 135/2020/ND- CP (lowest retirement age tablesee details HERE) and have paid compulsory social insurance for 20 years or more, including 15 years of working in heavy, toxic, dangerous or especially heavy, toxic, and dangerous jobs; or have worked for 15 years or more in areas with extremely difficult socio-economic conditions, including working time in places with regional allowance coefficients of 07 or more before January 1, 2021.< /p>

Second, the downsizing group has a maximum age of 5 years lower and a minimum of 2 years lower than the retirement age specified in Appendix I of Decree No. 135/2020/ND-CP (retirement roadmap table under normal working conditionssee details HERE) and have paid compulsory social insurance for 20 years or more.

Third, the downsizing group has a minimum age of 2 years lower compared to the retirement age specified in Appendix II of Decree No. 135/2020/ND-CP and have paid 20 years or more of compulsory social insurance, including 15 years of working in heavy, toxic, dangerous or especially heavy, toxic and dangerous jobs. dangerous; or have worked for 15 years or more in areas with extremely difficult socio-economic conditions, including working time in places with regional allowance coefficients of 07 or more before January 1, 2021.

Fourth, the downsizing group has a minimum age of 2 years lower than the retirement age specified in Appendix I of Decree No. 135/2020/ND-CP and has 20 years of compulsory social insurance payment. or more (only female commune-level civil servants must have 15 years of compulsory social insurance or more).

The fifth group of downsizing is female commune-level civil servants whose age is lower than the maximum age. Full 5 years old and at least 2 years younger than the retirement age specified in Appendix I of Decree No. 135/2020/ND-CP with 15 to less than 20 years of compulsory social insurance payment.