According to the current Law on Social Insurance, employees working under normal conditions, when retiring, have paid social insurance for 20 years or more and meet the age requirements, can retire.

The law also clearly stipulates that retirees in normal working conditions who have paid social insurance for 20 years must not retire more than 5 years earlier than the prescribed age, except for cases of heavy and hazardous labor, and some cases with separate regulations related to HIV...

From January 1, 2021, the retirement age of employees in normal working conditions will be adjusted according to the roadmap until reaching 62 years old for male employees in 2028 and 60 years old for female employees in 2035 (each year increases by 3 months for men and 4 months for women).

According to this roadmap, in 2024 the retirement age for male workers will be 61 years old, and for women it will be 56 years and 4 months.

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Retiring early, workers receive very low salaries.

The monthly pension of eligible employees is calculated at 45% of the average monthly salary subject to social insurance, then 2% is added for each additional year, up to a maximum of 75%.

On the contrary, for those who retire before the legal age, each year before, the pension is reduced by 2%. In case the retirement age has an odd time up to 6 months, the reduction is 1%, from more than 6 months, the percentage is not reduced due to early retirement.

Therefore, when employees retire early, they will not receive their full pension.

A representative of Hanoi Social Insurance said that according to the 2014 Social Insurance Law, retirement will be based on two conditions: Age and number of years of social insurance contributions.

Regarding the minimum number of years of social insurance payment, it is 20 years. Regarding the calculation of pension rate, for women, it is 30 years to receive the maximum 75%, for men, it is 35 years.

Therefore, for men, retirement after 20 years of social insurance contribution, if not yet old enough to retire, will be 45%; this rate for women corresponds to 15 years of contribution.

In addition, the Law also stipulates that each year of early retirement will be deducted by 2%. Specifically, if a man has paid social insurance for 20 years and retires 5 years early, each year will be deducted by 2%, leaving only 35%.

Thus, with the current regulations, the pension for workers who retire before the retirement age will be very low. Therefore, the Social Insurance always encourages workers to pay social insurance until they reach retirement age.

Statistics from Vietnam Social Security show that in the period 2016-2022, the whole country has settled nearly 763,000 pensioners, but only about 420,000 people reached the rate of 75%, accounting for more than 55% of the number of people settled to receive pension benefits. Most have a benefit level from 3 to less than 7 million VND/month.

According to the Ministry of Labor, Invalids and Social Affairs , although the maximum pension rate in Vietnam is 75%, quite high compared to some countries in the region, but with the salary used as the basis for compulsory social insurance contributions not high (average in 2022 is 5.73 million VND/month), the pension level of pensioners is currently only about 5.4 million VND/month.