Question: What is the pension and one-time retirement benefit for compulsory social insurance (SI) participants?
Reply: Pension is a policy allowance that helps the elderly have a stable monthly income and not have to depend too much on their children. According to current regulations, the monthly pension of workers is calculated at 45% of the average monthly salary for social insurance contributions.
From July 1, 2025, when the Social Insurance Law 2024 takes effect, the social insurance pension level will be calculated based on the number of years of social insurance contributions and the average salary used as the basis for social insurance contributions. Accordingly, Article 66 of the Social Insurance Law 2024 stipulates the monthly pension level as follows:
For female employees: The pension is equivalent to 45% of the average salary used as the basis for social insurance contributions (as prescribed in Article 72 of the Social Insurance Law 2024) corresponding to 15 years of social insurance contributions. After that, each additional year of contribution is calculated at 2%, with a maximum benefit of 75%.
For male employees: The benefit level is 45% of the average salary used as the basis for social insurance contributions (stipulated in Article 72 of the Social Insurance Law 2024) corresponding to 20 years of social insurance contributions. Each additional year of contribution is calculated by adding 2%, with a maximum limit of 75%. In case male employees have paid social insurance for 15 years but less than 20 years, the monthly pension level is calculated as 40% of the average salary used as the basis for social insurance contributions, corresponding to 15 years of social insurance contributions, then each additional year of contribution is calculated by adding 1%.
Currently, 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%. Each year of social insurance contributions is calculated as 0.5 months of the average monthly salary for social insurance contributions (Social Insurance Law 2014).
From July 1, 2025, when the Social Insurance Law 2024 takes effect, the one-time pension allowance level upon retirement will be implemented according to the provisions of Clause 1, Article 68 of the Social Insurance Law 2024. Specifically: Male workers with social insurance payment period exceeding 35 years, female workers with social insurance payment period exceeding 30 years, when retiring, in addition to pension, will also receive a one-time allowance.
The level of one-time benefit is stipulated in Clause 2, Article 68 of the Law on Social Insurance 2024 as follows:
- In case the employee is eligible for pension and completes the procedures to receive pension, the one-time benefit is calculated at 0.5 times the average monthly salary used as the basis for social insurance contributions for each year of contribution exceeding the number of years specified in Clause 1, Article 68 of the Social Insurance Law 2024 until the retirement age as prescribed by law.
- In case the employee is eligible for pension but continues to participate in social insurance, the subsidy will be twice the average salary used as the basis for social insurance contributions for each year of contribution higher than the prescribed number of years (from the time after reaching retirement age according to the law until the time of official retirement and pension benefits).
Source: https://baobinhphuoc.com.vn/news/9/170532/muc-huong-luong-huu-va-tro-cap-1-lan-khi-nghi-huu-tu-1-7
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