Monthly pension upon reaching retirement age
Upon reaching retirement age, employees who have contributed to the Social Insurance (SI) for at least 20 years will be eligible for a monthly pension. Specifically, according to Article 56 of the 2015 SI Law, the pension amount for employees is calculated using the following formula:
Monthly pension = Contribution ratio x Average monthly salary/income contributing to SI
Among which, female employees will receive a rate of 55% while male employees will receive a rate of 45%.
If employees only have 20 years of SI contributions, their monthly pension will be relatively low. For each additional year of contributions beyond 20 years, employees will receive an additional 2% in their pension. The maximum pension amount for both male and female employees is 75%.
Unemployment benefits
According to Article 49 of the 2013 Law on Employment, employees who have contributed to unemployment insurance for at least 12 months within the 24 months prior to the termination of their employment contract will be eligible for unemployment benefits.
However, employees must submit an application for unemployment benefits within 03 months from the date of termination of their employment contract.
Unemployment benefit/month = Average monthly salary contributed to Unemployment Insurance Fund (UIF) for the 6 consecutive months prior to unemployment x 60%
The period for which unemployment benefits are received is calculated based on the duration of the employee’s unemployment insurance contributions. Specifically, if employees contribute for 12 – 36 months to unemployment insurance, they are eligible for 03 months of benefits.
For periods of unemployment insurance contributions exceeding this, employees will receive an additional 01 month of benefits for every additional 12 months of contributions. The maximum period for receiving unemployment benefits is 12 months.
Severance pay
According to Article 46 of the 2019 Labor Code, employees who have worked continuously for an employer for at least 12 months will be eligible for severance pay if they resign in accordance with the law.
Severance pay = 1/2 x Number of years of service eligible for severance pay x Average salary for 06 consecutive months under the contract prior to termination
Wherein: The period used to calculate severance pay is the actual working time – the period of participation in unemployment insurance (UIF) – the period of employment for which severance pay or redundancy pay has been paid.
In addition, the salary used to calculate severance pay is the average salary for 6 consecutive months under the employment contract prior to the employee’s termination.
