1.27 million people receive public sector pensions
The Ministry of Labor, War Invalids and Social Affairs has developed an adjustment plan pensionis divided into 3 groups of subjects.
The first group is people normal retirement. Adjustment of salary Pensions are not lower than 50% of the post-reform salary increase to ensure harmony and balance so that retirees are not pushed further and disadvantaged by salary reform.
The second group is the beneficiaries. budget salary that retires before July 1, 2024. This Ministry believes that the state needs to apply a compensation level to reduce the salary difference between retirees before and after the salary policy reform.
The third group is the group that retired before 1995. The state will have a special policy to push pensions even higher.
So those who receive budget salary but retire before July 1 (before wage reform) proposed by the Ministry of Labor, War Invalids and Social Affairs should be applied with a compensation level to reduce the difference between The group rested before and after the above time.
According to statistics of Social Insurance Vietnam’s current average salary paid for social insurance by workers in the administrative, career, and union groups is 6,936 million VND, 9% higher than the business sector.
As of December 2023, there are 127 million people. receive a pension and when retiring, enjoy the state’s salary regime. The average pension of this group is 61 million VND/month.
Pension calculation
Article 56 of the Law on Social Insurance 2014 stipulates from On January 1, 2018, the monthly pension of eligible employees is calculated as 45% of the average monthly salary paid for social insurance and corresponding to the number of years of paying social insurance.
Specifically, male workers retiring in 2018 will be 16 years, 2019 will be 17 years, 2020 will be 18 years, 2021 will be 19 years and from 2020 onwards will be 20 years. Female employees retiring from 2018 onwards will have 15 years. After that, for each additional year, the employee will be charged an additional 2% until reaching the maximum level of 75%.
According to the provisions of Articles 56 and 74 of the Law on Social Insurance 2014, the employee’s pension level Based on the benefit rate and average monthly salary/income paying social insurance, determined according to the general formula: Monthly pension = Benefit rate x Average monthly salary/income paying social insurance Association.
The way to calculate the employee’s pension rate is based on point bcclause 2 Article 7 of Decree 115/2015/ND-CP and point bcclause 2 Article 3 Decree 134/2015/ND -CP.
Specifically, for female employees retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance payment. After that, for each additional year of social insurance payment, an additional 2% is calculated; The maximum rate is 75%.
For male employees retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to 20 years of social insurance payment. After that, for each additional year of social insurance payment, an additional 2% is calculated; The maximum level is 75%.
Workers are subject to Implementing the salary regime prescribed by the State, calculate the average monthly salary of the number of years of social insurance payment before retirement as follows: Last 5 years before retirement for employees starting to participate in insurance social insurance before January 1, 1995; the last 6 years before retirement for employees who started participating in social insurance between January 1, 1995 and December 31, 2000. p>
The last 8 years before retirement for employees who started participating in social insurance during the period from January 1, 2001 to December 31, 2006 for employees who begin participating in social insurance between January 1, 2007 and December 31, 2015.
The last 15 years before retirement for employees who begin Start participating in social insurance in the period from January 1, 2016 to December 31, 2019. for employees who start participating in social insurance in the period from January 1, 2020 to December 31, 2024. Starting to participate in social insurance from January 1, 2025 onwards, the average monthly salary paid for social insurance for the entire period will be calculated.
“