According to Article 56 of the Social Insurance Law 2014, from January 1, 2018, the monthly pension level for eligible workers is calculated at 45% of the average monthly income on which social insurance contributions are based, and corresponding to the number of years of social insurance contributions as follows:
a) Male workers retiring in 2018 will have 16 years of contributions, 17 years in 2019, 18 years in 2020, 19 years in 2021, and 20 years from 2022 onwards;
b) Female workers retiring from 2018 onwards will have 15 years of contributions.
Afterwards, for each year of social insurance contributions, the pension entitlements specified in point a and b of this provision will be increased by 2%; the maximum level will be 75% of the monthly wage on which social insurance contributions are based.
According to the provisions of Article 56 and Article 74 of the Social Insurance Law 2014, the pension for workers is determined by the following general formula:
Monthly pension = Pension rate x Average monthly wage/income on which social insurance contributions are based
In which, the average monthly wage on which social insurance contributions are based (for compulsory social insurance participants) or the monthly income on which social insurance contributions are based (for voluntary social insurance participants) will depend on the monthly wage or income contributed by the worker and multiplied by the corresponding exchange rate.
Point b,c of Clause 2 of Article 7 of Decree 115/2015/ND-CP and point b,c of Clause 2 of Article 3 of Decree 134/2015/ND-CP provide guidance on the calculation of the pension entitlements of workers.
Accordingly, for female workers retiring from January 1, 2018, the monthly pension entitlement will be calculated at 45% corresponding to 15 years of social insurance contributions. Afterwards, for each year of social insurance contributions, the entitlements will be increased by 2%; the maximum level will be 75%.
Therefore, female workers retiring in 2024, if they have enough 25 years of social insurance contributions, will receive a pension with a rate of 65% of the monthly wage on which social insurance contributions are based.
For male workers, from 2022 onwards, the monthly pension entitlement will be calculated at 45% corresponding to 20 years of social insurance contributions. Afterwards, for each year of social insurance contributions, the entitlements will be increased by 2%; the maximum level will be 75%.
Therefore, male workers retiring in 2024, if they have enough 25 years of social insurance contributions, will receive a pension with a rate of 55% of the monthly wage on which social insurance contributions are based.
What documents are required to apply for retirement?
Based on Section 1.2.2 of Article 6 of Chapter III on the process of settling social insurance entitlements, paying social insurance benefits, and unemployment insurance issued together with Decision No. 166/QD-BHXH dated January 31, 2019, a worker who wishes to retire must complete the following documents.
For workers participating in compulsory social insurance at their workplace:
– Social insurance book.
– Retirement decision in accordance with the form issued together with Decree No. 46/2010/ND-CP dated April 27, 2010 of the Government on the retirement regime, or retirement decision in accordance with Form No. 12-HSB, or a document terminating the labor contract entitling retirement benefits.
– Medical assessment report on the degree of work capacity reduction by the Medical Assessment Council for retired workers due to work capacity reduction or a certified copy of the HIV/AIDS certificate due to occupational accidents;
For workers participating in voluntary social insurance:
For workers participating in voluntary social insurance, the preservation of the period of participation in social insurance includes individuals who are currently serving prison sentence, individuals who voluntarily returned to settle legally, individuals whose court decisions to declare missing were canceled), the dossier includes:
– Social insurance book.
– Request form according to Form No. 14-HSB.
– Medical assessment report on the degree of work capacity reduction by the Medical Assessment Council for retired workers due to work capacity reduction or a certified copy of the HIV/AIDS certificate due to occupational accidents;
– Power of attorney (Form No. 13-HSB) for individuals who are currently serving prison sentence and the time for counting the acceptance of the sentence begins from January 1, 2016 onwards.
– For cases where the prison sentence has been completed from January 1, 1995 to before January 1, 2016, an additional certified copy of one of the following documents is required: A certified copy of the certificate of completion of the prison sentence or an early release decision, or a decision on exemption or temporary suspension of the prison sentence.
– Certified copy of the relevant state agency’s document authorizing the individual to return to settle legally if it is a case of voluntary return.
– For cases where the individual is declared missing and returns, an additional certified copy of the court’s legal effect decision canceling the declaration of missing is required.
