In which cases is the pension lower than the basic salary?

Ms. Le Thi Tu ( Vinh Phuc ) sent a petition to Vietnam Social Security requesting consideration of the pension level in her case.

Ms. Tu received her retirement decision in January 2028, with 20 years of compulsory social insurance contributions and a pension of more than VND 748,000 (pension rate of 55%). Because the pension at that time was lower than the prescribed minimum wage, Ms. Tu was compensated with a basic salary of VND 1.3 million/month.

In June 2024, the basic salary was adjusted to 1.8 million VND/month, Ms. Tu received the corresponding adjustment level.

However, last July, the basic salary was adjusted to increase by 15%, causing Ms. Tu's pension to only VND2,070,000, while the current basic salary is VND2,340,000.

Illustration: Chi Hieu.

Ms. Tu said that the implementation of Decree 75/2024 of the Government, which resulted in her pension being lower than the current basic salary, is contrary to the provisions of Articles 54 and 55 of the 2014 Law on Social Insurance.

Specifically, the lowest monthly pension of employees participating in compulsory social insurance who are eligible for pension according to regulations is equal to the basic salary, except for the cases specified in Point i, Clause 1, Article 2 and Clause 3, Article 54.

Furthermore, according to the principle of applying legal documents, in this case, the Law on Social Insurance must be applied to adjust pensions for employees because it has higher legal value than Decree 75/2024.

Regarding the case of Ms. Tu and workers in similar conditions, Vietnam Social Security said that according to Clause 1, Article 1 of Decree 75/2024, the subjects of pension adjustment, social insurance benefits and monthly allowances include: Cadres, civil servants, workers, public employees and workers (including those who have participated in voluntary social insurance, retirees from the Nghe An Farmers' Social Insurance Fund transferred under Decision 41/2009); soldiers, people's police and people working in key positions who are receiving monthly pensions.

In addition, Clause 1, Article 2 of Decree 75/2024 stipulates that from July 1, 2024, the pension, social insurance allowance and monthly allowance of June 2024 will be adjusted up by 15% for the subjects specified in Clause 1, Article 1 of this Decree.

Comparing the above regulations, the employees have been settled by Vinh Phuc Social Insurance to receive monthly pension from January 2018 at the rate of 1.3 million VND/month. Including: Monthly pension (748,266 VND), pension adjustment for female employees starting to receive pension in the period 2018 - 2021 according to Decree 153/2018 (54,399 VND, equivalent to 7.27%) and additional compensation equal to the basic salary of 497,335 VND.

Through the Government's adjustments, her pension of VND 2,070,000/month from July 1, 2024 is in accordance with state regulations.

Vietnam Social Security believes that the regulation on calculating monthly pension benefits compensated by the basic salary only applies at the time the employee begins to receive pension benefits in January 2018; it does not apply to adjustments to pensions, social insurance benefits and monthly benefits.

Source: https://vietnamnet.vn/truong-hop-nao-nhan-luong-huu-thap-hon-luong-co-so-2333902.html