*For employees participating in compulsory social insurance:
Article 66 of the 2024 Law on Social Insurance details the monthly pension levels for those participating in compulsory social insurance. Specifically:
– For female workers, it is 45% of the average salary used as the basis for social insurance contributions as stipulated in Article 72 of the 2024 Law on Social Insurance, corresponding to 15 years of social insurance contributions. For each additional year of contribution, 2% is added, up to a maximum of 75%.
– For male workers, it is 45% of the average salary used as the basis for social insurance contributions as stipulated in Article 72 of the 2024 Law on Social Insurance, corresponding to 20 years of social insurance contributions. For each additional year of contribution, 2% is added, up to a maximum of 75%.
In the case of male workers with a social insurance contribution period of between 15 and under 20 years, the monthly pension is 40% of the average salary used as the basis for social insurance contributions as stipulated in Article 72 of the 2024 Law on Social Insurance, corresponding to 15 years of social insurance contributions. For each additional year of contribution, 1% is added.
*Note: The monthly pension level for employees in certain special and hazardous occupations in the people’s armed forces is determined by the Government. The funding source for this is the state budget.
*For employees participating in voluntary social insurance:
According to Article 99 of the 2024 Law on Social Insurance, the monthly pension levels for those participating in voluntary social insurance are as follows:
– For female workers, it is 45% of the average income used as the basis for social insurance contributions as stipulated in Article 104 of the 2024 Law on Social Insurance, corresponding to 15 years of social insurance contributions. For each additional year of contribution, 2% is added, up to a maximum of 75%.
– For male workers, it is 45% of the average income used as the basis for social insurance contributions as stipulated in Article 104 of the 2024 Law on Social Insurance, corresponding to 20 years of social insurance contributions. For each additional year of contribution, 2% is added, up to a maximum of 75%.
In the case of male workers with a social insurance contribution period of between 15 and under 20 years, the monthly pension is 40% of the average income used as the basis for social insurance contributions as stipulated in Article 104 of the 2024 Law on Social Insurance, corresponding to 15 years of social insurance contributions. For each additional year of contribution, 1% is added.
In addition, pensions are adjusted based on the increase in the consumer price index, taking into account the capacity of the state budget and the social insurance fund.
Furthermore, pension increases are adjusted reasonably for those with low pensions and those who retired before 1995 to ensure a narrowing of the pension gap between those who retired in different periods.
The Struggle of Online Queuing for One-Time Social Security Claims
For one-time social insurance benefit claims, Ho Chi Minh City Social Insurance will prioritize online submissions over physical ones. This means that claims submitted digitally will be processed first, followed by those submitted in person.
Seniors Receiving Low Pensions Will Get a Fair Increase Starting July 1, 2025
As the amended Social Insurance Law comes into effect (1/7/2025), those with low retirement pensions and those who retired before 1995 will receive a significant increase in their pension payments.
Retirement Pensions Have Seen a Seven-Fold Increase Over the Last Decade
According to the Ministry of Labour, Invalids and Social Affairs, over the past decade (2013-2023), the government has adjusted retirement pensions seven times, with an average increase of over 8.43% each time. This is significantly higher than the consumer price index increase for the same period.
Will Workers Continue to Receive Pension Increases from July 2025?
The Social Insurance Law of 2024, specifically according to Article 67 and Clause 2 of Article 99, stipulates that from July 1, 2025, there will be a continuation of pension adjustments for employees.
What Can Employees Expect from Their Retirement Pension After 30 Years of Social Insurance Contributions?
The hardworking individuals who are planning for their retirement deserve a pension that covers their essential needs. They aspire for a financial cushion that ensures their basic expenses, such as food, utilities, and household bills, are taken care of comfortably.
