What is the maximum pension benefit amount?
Based on the provisions of Article 56 and Article 74 of the 2014 Social Insurance Law, the monthly pension amount for those who are required to participate in social insurance is calculated using the following formula:
Monthly pension = Pension rate x Average monthly salary/income subject to social insurance contribution
In which:
– The average monthly salary subject to social insurance contribution (for mandatory social insurance participants) or monthly income subject to social insurance contribution (for voluntary social insurance participants) will depend on the monthly salary or income of the employee and multiplied by the corresponding exchange rate.
– The pension rate will be calculated based on the number of years of social insurance contribution, but the maximum rate is only 75%.
Therefore, the maximum pension benefit for employees is 75% of the average monthly salary/income subject to social insurance contribution after being adjusted on the basis of the consumer price index.
How many years of social insurance contribution to receive the maximum pension benefit?
For female workers:
Point b Clause 2 of Article 7 of Decree No. 115/2015/ND-CP and point b Clause 2 of Article 3 of Decree No. 134/2015/ND-CP have guided the calculation of the pension rate for female workers. Specifically, female workers retiring from January 1, 2018 onwards, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contribution, then for each additional year of social insurance contribution, the rate will be increased by 2%; the maximum rate is 75%.
According to this regulation, depending on the number of years of social insurance contribution, the pension rate will be different for each worker. For female workers, in 2024, they need to contribute to social insurance for at least 30 years to receive the maximum pension benefit.
For male workers:
According to point c Clause 2 of Article 7 of Decree No. 115/2015/ND-CP and point c Clause 2 of Article 3 of Decree No. 134/2015/ND-CP, the monthly pension rate for male workers in 2024 is calculated at 45% corresponding to 20 years of social insurance contribution, then for each additional year of social insurance contribution, the rate will be increased by 2%; the maximum rate is 75%.
Using this calculation method, male workers who want to receive the maximum pension benefit need to contribute to social insurance for at least 35 years.
