Dong Hoa Town residents are happy to receive their pensions. Photo: LE VAN |
How to calculate pension from 1/7/2025
The 2024 Social Insurance Law, effective from July 1, 2025, stipulates that employees who have paid compulsory social insurance for 15 years or more and are of the prescribed retirement age are entitled to receive a pension when they retire.
According to regulations, for female workers, the monthly pension is calculated at 45% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions. After that, for each additional year of social insurance contributions, the benefit rate is calculated by 2%, up to a maximum of 75% corresponding to 30 years of social insurance contributions.
For male workers, the monthly pension is calculated at 45% of the average salary used as the basis for social insurance contributions corresponding to 20 years of social insurance contributions. After that, for each additional year of social insurance contributions, the benefit rate is calculated by 2%, up to a maximum of 75% corresponding to 35 years of social insurance contributions.
In case of early retirement due to labor loss, the pension rate will be reduced. Accordingly, for each year of early retirement, the pension rate will be reduced by 2%; in case of early retirement of less than 6 months, the pension rate will not be reduced, from 6 months to less than 12 months, the pension rate will be reduced by 1%.
People in Tay Hoa district are happy to receive their pensions. Photo: LE VAN |
Retirement benefits will increase fourfold
Also according to the 2024 Social Insurance Law, in addition to receiving pensions, social insurance participants are also entitled to a number of other benefits, including a one-time pension upon retirement that has been adjusted to increase sharply.
Accordingly, in case an employee receives a pension at the time of retirement age, the one-time benefit is equal to 0.5 times the average salary used as the basis for social insurance contributions for each year of contributions higher than the regulations until retirement age.
In case the employee is eligible for pension but continues to pay social insurance, the subsidy is equal to 2 times the average salary used as the basis for social insurance payment for each year of payment higher than the prescribed number of years.
According to statistics from Social Insurance Region XXVI, Phu Yen has more than 16,000 people receiving monthly pension and social insurance benefits.
Thus, from July 1, the one-time pension benefit for employees who are eligible for pension and continue to pay social insurance will be 4 times higher than the current level. This encourages employees to continue working and paying social insurance after retirement age.
In addition, pensioners are also granted free health insurance cards from the time they receive their pension until they die with high benefits. The health insurance benefit level for pensioners is 95%.
In addition to the above regimes, relatives of pensioners are entitled to death benefits if during the period of receiving monthly pension, the pensioner unfortunately passes away.
The death benefit includes a funeral allowance equal to 10 times the basic salary in the month the pensioner dies and a monthly death benefit or a one-time death benefit.
Source: https://baophuyen.vn/xa-hoi/202506/nguoi-nghi-huu-tu-ngay-172025-co-them-che-do-moi-d5f2341/
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