The downsized employee has only paid social insurance for 7 years, how can he get a pension?

(Dan Tri Newspaper) - Ms. Van's mother has only been contributing to mandatory social insurance for 7 years, and still has 8 years left until she reaches retirement age, but she may be laid off soon. Ms. Van wants to continue contributing to her mother's insurance so she can receive a pension.

Ms. Van stated that her mother, born in September 1973, is a school service worker who has been employed for 7 years (2017-2024). During this time, her mother participated in mandatory social insurance (BHXH) paid by her workplace.

According to Ms. Van, the company plans to lay off some employees in the near future, including her mother. Ms. Van wants her mother to have a pension so she can have an easier life and peace of mind in her old age, so she intends to contribute to voluntary social insurance for her mother.

Ms. Van asked: "Will my mother's retirement age be affected by participating in both mandatory and voluntary social insurance? If it won't be affected, will she be able to apply for retirement benefits when she turns 59 in September 2032?"

Ms. Vân also wants to know how her mother's pension is calculated. During the past 7 years of mandatory social insurance participation, her mother's salary used for social insurance contributions was 5.5 million VND. She plans to have her mother participate in voluntary social insurance for another 8 years, with the same income used as the basis for contributions also being 5.5 million VND.

According to the Vietnam Social Security, Article 98 of the Social Insurance Law No. 41/2024/QH15 (effective from July 1, 2025) stipulates: "Individuals participating in voluntary social insurance are entitled to a pension upon reaching the retirement age as prescribed in Clause 2, Article 169 of the Labor Code and having contributed to social insurance for at least 15 years."

According to Government Decree No. 135/2020/ND-CP, the retirement age for female workers born in September 1973 is 59 years old, and the time of receiving pension benefits after having contributed to social insurance for 15 years or more is from October 2032.

Therefore, if Ms. Van's mother has contributed to social insurance for 15 years or more, she will be eligible to receive a pension from October 2032.

Regarding the calculation of the monthly pension in Ms. Van's mother's case, the Vietnam Social Security (BHXH) stated that it is regulated by Article 99 of the 2024 Social Insurance Law.

Accordingly, the monthly pension for female workers is equal to 45% of the average income used as the basis for social insurance contributions for 15 years of contributions, and then an additional 2% is added for each additional year of contribution, up to a maximum of 75%.

Monthly pension rates from July 1, 2025 (Graphic: Tung Nguyen).

The basis for paying social insurance contributions in Ms. Vân's mother's case is stipulated in Article 104 of the 2024 Social Insurance Law.

Accordingly, the average income used as the basis for voluntary social insurance contributions is calculated as the average of the income levels used as the basis for social insurance contributions over the entire contribution period.

The monthly income on which social insurance contributions are paid, used as the basis for calculating the average income for social insurance contributions of employees, is adjusted based on the consumer price index of each period as stipulated by the Government.

The Vietnam Social Security (BHXH) stated: "According to the regulations in the 2024 Social Insurance Law, to be eligible for a pension, your mother must have contributed to social insurance for 15 years and be at least 59 years old."

According to this agency, if Ms. Van's mother continues to pay voluntary social insurance contributions for a full 15 years, the average monthly salary used to calculate her pension will include the salary from the 7 years of mandatory social insurance participation and the monthly income from the 8 years of voluntary social insurance participation.

However, the calculation of pension benefits for employees is based on the evolution of monthly wages and income used as the basis for social insurance contributions throughout the entire period of social insurance contributions recorded in the social insurance book, the total actual social insurance contribution period until reaching retirement age, and the adjustment of monthly wages and income used for social insurance contributions at the time of eligibility for retirement benefits...

Source: https://dantri.com.vn/an-sinh/nhan-vien-bi-tinh-gian-moi-dong-bhxh-duoc-7-nam-lam-sao-de-co-luong-huu-20250109102756775.htm