According to the new regulations, female workers are eligible for a monthly pension of 45% of the average salary based on their social insurance contributions as specified in Article 72 of the Law. This corresponds to 15 years of social insurance contributions, with an additional 2% added for each subsequent year of contribution, up to a maximum of 75%.
Male workers, on the other hand, are entitled to a monthly pension of 45% of the average salary based on their social insurance contributions as per Article 72 of the Law. This corresponds to 20 years of social insurance contributions, with an additional 2% added for each subsequent year of contribution, up to a maximum of 75%.
In the case of male workers who have contributed to social insurance for a period ranging from 15 years to less than 20 years, the monthly pension is calculated as 40% of the average salary based on social insurance contributions specified in Article 72 of the Law for 15 years of contributions, with an additional 1% added for each subsequent year.
This means that instead of only female workers with a mandatory social insurance contribution period of at least 15 years being eligible for a pension under the 2014 Social Insurance Law, the 2024 Law has introduced an additional calculation method for male workers with a contribution period ranging from 15 to under 20 years.
According to Articles 66 and 72 of the 2024 Social Insurance Law, the monthly pension for mandatory social insurance contributors is calculated using the following formula:
Monthly pension = (Pension rate) x (Average monthly salary based on social insurance contributions)
For employees who are subject to the state-regulated salary scheme and have contributed to social insurance under this scheme for their entire career, the average salary used as the basis for social insurance contributions for the years prior to retirement is calculated as follows:
– For the period before January 1, 1995: The average monthly salary for social insurance contributions is calculated based on the average of the last 5 years before retirement.
– For the period from January 1, 1995, to January 1, 2000: The average monthly salary for social insurance contributions is calculated based on the average of the last 6 years before retirement.
– For the period from January 1, 2001, to December 31, 2006: The average monthly salary for social insurance contributions is calculated based on the average of the last 8 years before retirement.
– For the period from January 1, 2007, to December 31, 2015: The average monthly salary for social insurance contributions is calculated based on the average of the last 10 years before retirement.
Therefore, female workers who retire in 2025 and have contributed to social insurance for 25 years will receive a pension equivalent to 65% of their monthly salary based on social insurance contributions.
For male workers, a 25-year contribution period will result in a pension equivalent to 55% of their monthly salary based on social insurance contributions.
When will the pension for September 2025 be paid?
According to Clause 4, Article 7 of the Decision No. 166/QD-BHXH of 2019, the schedule for pension payments is as follows:
– Payment at the payment point: From the 2nd to the 10th of the payment month, with a minimum of 6 hours per day at all payment points. The payment can only be concluded before the 10th if all beneficiaries on the list provided by the social insurance agency have been paid.
– Payment at the post office branch in the district: From the 11th of the month onwards, payments continue at the post office branches until the 25th of the month.
However, the social insurance agency may adjust the payment schedule to suit the specific circumstances of each locality.
Additionally, since September 2nd is a holiday, the payment schedule will be shifted to the next working day. Therefore, the pension for September 2025 will be paid from September 3rd to September 10th in all localities.
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