How to calculate pension and lump sum benefits upon retirement

(Chinhphu.vn) - Ms. Tran Thi Dung (Hanoi), born in 1975, holds the position of head of a department of a State agency, has applied for early retirement from April 1, 2025. Ms. Dung asked, how is the pension and one-time pension calculated when retiring according to the pension regime for her?

Regarding this issue, Vietnam Social Security responds as follows:

Conditions for receiving pension

According to the provisions of Article 169, Clause 1, Article 219 of the 2019 Labor Code and Decree No. 135/2020/ND-CP dated November 18, 2020 of the Government , from January 1, 2021, the retirement age for employees working in normal conditions will be adjusted according to the roadmap of increasing by 3 months each year for male employees until reaching 62 years old in 2028 and increasing by 4 months each year for female employees until reaching 60 years old in 2035; specifically as follows:

Retirement age of employees with 20 years of social insurance contributions under normal working conditions: In 2021, it is 60 years and 3 months for male employees and 55 years and 4 months for female employees; then, it increases by 3 months each year for male employees until reaching 62 years old in 2028 and by 4 months each year for female employees until reaching 60 years old in 2035.

Employees can retire no more than 5 years younger than the retirement age under normal working conditions at the time of retirement if they have paid social insurance for 20 years and are in one of the following cases:

- Workers with 15 years or more of experience in arduous, toxic, and dangerous jobs (NNDHNH) or especially NNDHNH on the list issued by the Ministry of Labor, War Invalids and Social Affairs ;

- Employees who have worked for 15 years or more in areas with particularly difficult socio -economic conditions (including working time in areas with regional allowance coefficient of 0.7 or higher before January 1, 2021);

- Employees with a total working time of NNDHNH or special NNDHNH occupation or job and working time in areas with especially difficult socio-economic conditions (including working time in areas with regional allowance coefficient of 0.7 or higher before January 1, 2021) of 15 years or more;

- Workers with reduced working capacity from 61% or more to less than 81%.

Employees can retire up to 10 years younger than the retirement age of employees working under normal working conditions if they have 20 years or more of social insurance contributions and one of the following additional conditions:

- Have 15 years of experience working in underground coal mining;

- Reduced working capacity of 81% or more.

Employees are not subject to age restrictions if they have paid social insurance for 20 years and are in one of the following cases:

- Infected with HIV/AIDS due to occupational accidents;

- Having a labor capacity reduction of 61% or more and having 15 years of experience in a special occupation or job in the list issued by the Ministry of Labor, War Invalids and Social Affairs (now the Ministry of Home Affairs).

Calculate monthly pension

The monthly pension level is stipulated in Article 56 of the Law on Social Insurance 2014 and Article 7 of Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government as follows:

The monthly pension of an employee is calculated by multiplying the monthly pension rate by the average monthly salary for social insurance contribution. In which, the pension rate:

- For male workers: Calculated at 45% of the average monthly salary for social insurance contributions corresponding to 20 years of social insurance contributions if retiring from 2022 onwards.

- For female workers: Calculated at 45% of the average monthly salary for social insurance contribution corresponding to 15 years of social insurance contribution.

After that, for each additional year of social insurance contributions, an additional 2% will be calculated for both men and women, up to a maximum of 75%. In case the employee retires before the prescribed age, the rate will be reduced by 2% for each year of retirement before the prescribed age.

The average monthly salary for social insurance contribution is implemented according to the provisions of Article 62 of the Law on Social Insurance 2014:

For employees subject to the salary regime prescribed by the State and having paid social insurance for the entire period under this salary regime, the average monthly salary for the number of years of paying social insurance before retirement shall be calculated as follows:

- If participating in social insurance before January 1, 1995, the average monthly salary for social insurance contributions of the last 5 years before retirement is calculated;

- For those participating in social insurance from January 1, 1995 to December 31, 2000, the average monthly salary for social insurance contributions of the last 6 years before retirement is calculated;

- For those participating in social insurance from January 1, 2001 to December 31, 2006, the average monthly salary for social insurance contributions of the last 8 years before retirement is calculated;

- For those participating in social insurance from January 1, 2007 to December 31, 2015, the average monthly salary for social insurance contributions of the last 10 years before retirement will be calculated;

- If participating in social insurance from January 1, 2016 to December 31, 2019, the average monthly salary for social insurance contributions of the last 15 years before retirement will be calculated;

- If participating in social insurance from January 1, 2020 to December 31, 2024, the average monthly salary for social insurance contributions of the last 20 years before retirement will be calculated;

- For those participating in social insurance from January 1, 2025 onwards, the average monthly salary for social insurance contributions for the entire period will be calculated.

Employees who have both a period of social insurance payment subject to the salary regime prescribed by the State and a period of social insurance payment under the salary regime decided by the employer shall have their average monthly salary for social insurance payment calculated for all periods, in which the period of payment under the salary regime prescribed by the State shall be calculated as the average monthly salary for social insurance payment according to the provisions of Clause 1 of this Article.

Lump sum pension upon retirement

According to Article 58 of the 2014 Law on Social Insurance, employees whose social insurance payment period is longer than the number of years corresponding to the pension rate of 75% will receive a one-time allowance in addition to their pension when they retire.

The one-time subsidy is calculated based on the number of years of social insurance contributions higher than the number of years corresponding to the pension rate of 75%. For each year of social insurance contributions, it is calculated as 0.5 months of the average monthly salary of social insurance contributions.

Because Ms. Dung did not provide full information about her job title, job, work location, health status, etc. to determine her eligibility for retirement benefits, Vietnam Social Security does not have enough basis to give a specific answer. Vietnam Social Security would like to provide some of the above information for Ms. Dung to understand. In case you need detailed explanation and instructions, you can contact the Social Security organization where you are participating in Social Security for advice and specific answers.

Chinhphu.vn

Source: https://baochinhphu.vn/cach-tinh-luong-huu-va-tro-cap-mot-lan-khi-nghi-huu-10225050809322449.htm