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

According to the current Law on Social Insurance (2014) as well as the amended Law on Social Insurance (2024), pensions for employees participating in compulsory social insurance under the salary regime prescribed by the State (public sector employees) or employees participating in compulsory social insurance under the salary regime decided by the employer (non-public sector employees) and voluntary social insurance participants are the same.

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

The way to calculate employees' pensions is the same (Illustration: QA).

However, the difference in calculating pensions for public sector workers compared to other groups is the way of calculating the average monthly salary as the basis for social insurance contributions.

Due to the different ways of calculating the average salary used as the basis for social insurance contributions, the pension calculation methods for the above groups of workers are different.

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

Accordingly, the average salary used as the basis for social insurance contributions of non-state employees and voluntary social insurance participants is calculated as the average monthly salary for social insurance contributions during their entire time participating in social insurance.

As for state sector employees, 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 participate in social insurance.

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

This calculation method in the 2014 Social Insurance Law is stipulated in Clause 1, Article 62, which also has a similar roadmap as above.

The only change in the pension calculation method in the coming time is that according to the roadmap (as 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 their social insurance contributions will be calculated as the average monthly salary for social insurance contributions of the entire period of social insurance participation.

The above calculation is the same as for non-state sector workers and voluntary social insurance participants.

Thus, for employees participating in social insurance from January 1, 2025, the calculation of monthly pension is the same, there is no difference between groups like those participating 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