How to calculate the average salary for social insurance contributions to receive pension

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The average salary used as the basis for social insurance contributions to receive pensions and one-time benefits is the content that employees are interested in when they reach retirement age or are eligible to receive the regime. Depending on each group of subjects, this calculation is regulated differently depending on the time of participation and the time of social insurance contributions.

Ha Tinh Social Insurance officers (Social Insurance Region XV) promote social insurance and health insurance policies to people.

Depends on the group Subjects, apply different pension calculation methods

Average salary used as basis for contribution social insurance is one of the factors that directly determine the level pension and lump sum benefits that employees are entitled to upon retirement or eligibility for benefits.

According to the provisions of Social Insurance Law 2024 Effective from July 1, 2025 and the guiding Decree, this calculation method is specified in detail and has clear differences between different groups of subjects.

Electronic components production at Dong Mia Industrial Park, Quang Ninh . (Photo: nhandan.vn)

As a general rule, the average salary used as the basis for social insurance contributions to calculate pensions and one-time benefits is stipulated in Article 72 of the Law. Social Insurance Law 2024 and is specified in detail in Article 15 of Decree 158/2025/ND-CP. This level is also used to calculate one-time social insurance benefits, one-time death benefits and monthly benefits for people who are not eligible for pension.

First is the calculation method for workers according to the salary regime prescribed by the State.

In case the employee has the entire period of social insurance payment under the State salary regime, the calculation of average salary will be based on the last number of years of social insurance payment before retirement, according to a specific roadmap:

- Participated in social insurance before January 1, 1995: Calculated average of the last 5 years.

- Joined from January 1, 1995 to December 31, 2000: Average of the last 6 years.

- Joined from 1/1/2001 to 12/31/2006: Average of the last 8 years.

- Joined from 1/1/2007 to 12/31/2015: Average of the last 10 years.

- Joined from 1/1/2016 to 12/31/2019: Average of the last 15 years.

- Join from 1/1/2020 to 12/31/2024: Average of the last 20 years.

- Participate from January 1, 2025 onwards: Calculate the average of the entire social insurance payment period.

The Law on Social Insurance 2024 also has provisions for specific special cases as follows.

Doing heavy, toxic work: People who have done 15 years or more of heavy, toxic, dangerous work, then transferred to another job with a lower social insurance salary, will have the salary of the number of years doing heavy, toxic work (corresponding to the average number of years prescribed in Clause 1, Article 72 of the Law) used to calculate the average.

Officers and soldiers changing careers: If the social insurance salary of the last years before retirement is lower than that of the last years before changing careers, their salary will be used as the basis for social insurance payment of the last years before changing careers to calculate the average level.

With seniority allowance: The calculation will be more complicated, depending on whether the final years to calculate the average include seniority allowance or not, ensuring benefits for employees.

Working time at commune level: Working time at commune level has been calculated for social insurance, social insurance payment time according to Decree No. 09/1998/ND-CP, and payment time of non-professional workers at commune level will be calculated as payment time according to the salary regime prescribed by the State.

Working time before January 1, 1995 without salary: If an employee has worked before 1995 without receiving salary or living expenses (paid by work points or food such as preschool teachers, commune-level cooperative managers, etc.), this time will not be counted in the average salary.

How to calculate with employees according to the salary regime prescribed by the State. In case the employee has the entire period of social insurance payment under the State salary regime, the calculation of average salary will be based on the last number of years of social insurance payment before retirement, according to the roadmap: - Participated in social insurance before January 1, 1995: Average of the last 5 years. - Joined from January 1, 1995 to December 31, 2000: Average of the last 6 years. - Joined from 1/1/2001 to 12/31/2006: Average of the last 8 years. - Joined from 1/1/2007 to 12/31/2015: Average of the last 10 years. - Joined from 1/1/2016 to 12/31/2019: Average of the last 15 years. - Join from 1/1/2020 to 12/31/2024: Average of the last 20 years. - Participate from January 1, 2025 onwards: Calculate the average of the entire social insurance payment period.

Second, the calculation method for employees under the salary regime decided by the employer: For this group of subjects, the average salary used as the basis for social insurance contributions will be calculated over the entire period of social insurance contributions.

Third, the calculation method for people who have both social insurance payment periods: Employees who have both social insurance payment periods under the State salary regime and payment periods under the regime decided by the employer, the average salary of the periods will be calculated. In which, the payment period under the State salary regime will be calculated on average according to the above regulations.

Adjusting salary for social insurance contributions

To ensure that the value of the salary paid does not depreciate over time, the law requires that the salary be adjusted before calculating the average.

Paying pensions and social insurance benefits in cash in Hanoi . (Photo: nhandan.vn)

For the State sector, social insurance participants before January 1, 2016, their paid salary will be adjusted according to the "reference level" at the time of receiving the regime. Participants from January 1, 2016 onwards will be adjusted according to the consumer price index of each period according to Government regulations.

For the non-state sector, the salary subject to social insurance contributions is adjusted based on the consumer price index of each period as prescribed by the Government. This adjustment coefficient is determined and published annually by the Vietnam Social Security based on data provided by the General Statistics Office, Ministry of Finance.

According to the Vietnam Social Security, there are currently about 3.4 million people in the country receiving pensions and social insurance benefits. In addition to monthly pensions, those eligible for pensions are also given free health insurance cards, with a contribution rate of 4.5% of pensions or disability benefits from the social security agency.

Statistics up to December 2024 of the Ministry of Labor, War Invalids and Social Affairs (formerly) show that the average pension of beneficiaries reaches 6.2 million VND/month.

Statistics from the Vietnam Social Security show that by the end of August 2025, the country had about 21.2 million people participating in social insurance with both compulsory and voluntary social insurance policies. From July 1, 2025, according to the provisions of the Social Insurance Law 2024, employees with 15 years of social insurance contributions will also receive pensions. Therefore, it is estimated that the number of people receiving pensions in the coming time will increase.

Source: https://baolangson.vn/cach-tinh-muc-binh-quan-tien-luong-dong-bao-hiem-xa-hoi-de-huong-luong-huu-5059224.html