According to Article 56 of the Social Insurance Law 2014, from January 1, 2018, the monthly pension payment of qualified employees is calculated at 45% of the monthly average of the social security contribution and corresponds to the following number of years of social security contribution:
a) Male employees retiring in 2018 for 16 years, in 2019 for 17 years, in 2020 for 18 years, in 2021 for 19 years, from 2022 onwards for 20 years;
b) Female employees retiring from 2018 onwards for 15 years.
After each additional year, employees specified in points a and b of this clause are entitled to an additional 2%; the maximum is 75% of the monthly salary for social security contribution.
According to the provisions of Article 56 and Article 74 of the Social Security Law 2014, the pension of employees is determined according to the following general formula:
Monthly pension payment = Percentage of benefit x Average monthly wage/income for social security contribution
In which, the average monthly salary for social security contribution (for compulsory social security participants) or monthly income for social security contribution (for voluntary social security participants) will depend on the salary or monthly income of the employee and is multiplied by the corresponding price adjustment coefficient.
Point b, c Clause 2 of Decree 115/2015/ND-CP and point b, c Clause 2 of Decree 134/2015/ND-CP both provide guidance on how to calculate the pension benefit percentage of employees.
Accordingly, for female employees retiring from January 1, 2018 onwards, the monthly pension benefit percentage is calculated at 45% corresponding to 15 years of social security contribution. After that, for each additional year of social security contribution, an additional 2% is calculated; the maximum is 75%.
Thus, female employees retiring in 2024, if contributing enough 20 years of social security contribution, will receive a pension at a rate of 55% of the monthly salary for social security contribution.
As for male employees, from 2022, the monthly pension benefit percentage will be calculated at 45% corresponding to 20 years of social security contribution. After that, for each additional year of social security contribution, an additional 2% is calculated; the maximum is 75%.
Thus, male employees retiring in 2024, if contributing enough 20 years of social security contribution, will receive a pension at a rate of 45% of the monthly salary for social security contribution.
Pension file includes what?
Pursuant to Section 1.2.2 Article 6 Chapter III on Procedures for handling social security benefits, Social Security Benefit Payments, and unemployment insurance payments issued with Decision No. 166/QĐ-BHXH of January 31, 2019, retiring employees complete files according to the instructions below.
In case of compulsory social security participation at the unit
– Social Security Record.
– Decision on retirement from work to enjoy retirement benefits according to the form issued with Decree No. 46/2010/ND-CP of April 27, 2010 by the Government or the Decision on retirement from work to enjoy retirement benefits according to form No. 12-HSB or the document terminating the employment contract to enjoy retirement benefits.
– Minutes of assessment of the level of reduced working capacity of the Medical Appraisal Council for retirees due to reduced working capacity or a copy of the certificate of HIV/AIDS infection due to occupational accidents.
In the case of voluntary social security participation
For cases of voluntary social security participation, retaining the social security participation period, including those who are serving sentences, those who have illegally left the country and returned to the country to legally settle down, those whose decisions to declare missing have been revoked by the Court), the file includes:
– Social Security Record.
– Application form No. 14-HSB.
– Minutes of assessment of the level of reduced working capacity of the Medical Appraisal Council for retirees due to reduced working capacity or a copy of the certificate of HIV/AIDS infection due to occupational accidents.
– Power of attorney (form No. 13-HSB) for cases where the sentence is being served and the time to start accepting the penalty is from January 1, 2016 onwards.
– Cases who have completed their prison sentence from January 1, 1995 to before January 1, 2016 must additionally include a copy of one of the following documents: Copy of the Certificate of Completion of Imprisonment or Certificate of Special Pardon before Sentence or Decision of Exemption from or Suspension of Imprisonment.
– A copy of the document of the competent state agency on returning to the country to settle down legally if it is the case of illegal exit and return.
– If missing, return with a copy of the Court’s legally enforceable Decision to annul the decision declaring missing.
Can employees register to receive their pension through an ATM card instead of cash?
Currently, the Vietnam Social Security provides the public service “Changing the receiving form or information of the social security beneficiary” on the VssID – Digital Social Security application. Accordingly, social security beneficiaries can register to change the form of receiving social security benefits from cash to their personal bank account.
Social security beneficiaries, especially those with retirement benefits, can change the form of receiving their pension through the VssID application as follows:
Step 1: Log in to the VssID application. On the Personal Management screen, go to Public Services.
Step 2: Select the item “Change the receiving form or information of the social security beneficiary”.
Step 3: Enter the required information (marked with a red asterisk), in the Receive form section, select Receive through account. Enter the bank account number and bank name (specify the bank branch) that the beneficiary wants to receive, click Submit.
Note: The information of the person registering on the VssID application must match the bank account holder declared in this section (full name, date of birth, ID card/CCCD number).
In the “Receive form” section, select “Receive through account”
Step 4: The Vietnam Social Security will send an OTP code to the beneficiary’s phone number.
Step 5: Enter the OTP code on the application and click Confirm.
Step 6: Vietnam Social Security will send a message to the user’s phone, informing that the personal account has successfully submitted the application.
