Changing the way pensions are calculated for social insurance participants from 2025

According to the current Social Insurance Law (2014) and the amended Social Insurance Law (2024), pensions for employees participating in compulsory social insurance based on salaries regulated by the State (state sector workers), employees participating in compulsory social insurance based on salaries determined by the employer (non-state sector workers), and those participating in voluntary social insurance are all the same.

Accordingly, the monthly pension will be equal to the pension entitlement rate multiplied by the average monthly salary used as the basis for social insurance contributions.

The method for calculating pensions for workers is the same (Illustrative image: QA).

However, the difference in how pensions are calculated for public sector workers compared to other groups lies in the method of calculating the average monthly salary used as the basis for social insurance contributions.

Because the method of calculating the average salary used as the basis for social insurance contributions differs, the method of calculating pensions for these groups of workers also differs.

In the 2014 Social Insurance Law, the method for calculating the average salary was stipulated in Article 62. In the 2024 Social Insurance Law, this method is stipulated in Article 72. Basically, the calculation method in the current Social Insurance Law and the amended Social Insurance Law are the same.

Accordingly, the average salary used as the basis for social insurance contributions for employees in the non-state sector and those participating in voluntary social insurance is calculated as the average monthly salary used for social insurance contributions throughout their entire period of participation in social insurance.

As for employees in the public sector, the average salary used as the basis for social insurance contributions is calculated as the average of the last years of social insurance contributions before retirement, depending on when they joined social insurance.

Specifically, according to Clause 1, Article 72 of the Social Insurance Law of 2024, it is as follows:

This calculation method, as stipulated in Clause 1, Article 62 of the 2014 Social Insurance Law, also follows a similar roadmap as described above.

The only change to the pension calculation method in the near future is that, according to the roadmap (stipulated in the 2014 Social Insurance Law), for state sector employees participating in social insurance from January 1, 2025, the average salary used as the basis for social insurance contributions will be calculated as the average monthly salary used for social insurance contributions over the entire period of participation in social insurance.

The calculation method is the same as for employees in the non-state sector and those participating in voluntary social insurance.

Therefore, for workers participating in social insurance from January 1, 2025, the method of calculating monthly pension is the same, with no difference between groups like those who participated in social insurance before 2025.

Source: https://dantri.com.vn/an-sinh/thay-doi-cach-tinh-luong-huu-cua-nguoi-tham-gia-bhxh-tu-nam-2025-20240923183810909.htm