Legal regulations on pensions in Vietnam

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Legal regulations on pensions in Vietnam

Legal regulations on pensions in Vietnam play a crucial role in protecting the rights and ensuring stable lives for workers after retirement. The legal framework related to pensions in Vietnam has undergone many adjustments and improvements to best meet the needs of workers and society.

According to current regulations, all workers participating in Social Insurance will receive pension benefits once they meet the conditions for retirement age and insurance contribution period.

Furthermore, legal provisions also provide specific conditions and regulations regarding the contribution and receipt of pensions, ensuring fairness and sustainability of the system. Control and management measures are established to ensure that workers’ rights are protected and implemented effectively.

Overall, legal regulations on pensions in Vietnam are not only a necessary legal foundation to protect workers’ rights but also an integral part of building a fair and sustainable society.

Pensions:

Pensions are payments made to workers who have reached retirement age (end of working age) as stipulated by law. This system helps ensure that elderly workers have the necessary funds to cover basic living expenses and healthcare.

According to the 2019 Labor Code, the retirement age has increased starting from January 1, 2021, as follows:

  1. For male workers: Reaching 61 years old for male workers. Every year, it will increase by 03 months until reaching 62 years old in 2028.
  2. For female workers: Reaching 56 years and 4 months for female workers. Every year, it will increase by 04 months until reaching 60 years old in 2035.

Workers who meet the retirement age criteria and have contributed to social insurance for at least 20 years will be eligible for retirement.

Pension Amount:

Based on the provisions of the Social Insurance Law, the monthly pension amount = Percentage (%) of monthly pension benefits x Average monthly wage subject to social insurance contributions.

The percentage (%) of monthly pension benefits is determined as follows:

  1. For those who have contributed to Social Insurance for 20 years (for males) and 15 years (for females), the rate is 45%. Then, for each additional year of contribution to Social Insurance, this rate increases by 2%.
  2. The maximum percentage (%) of monthly pension benefits is 75%.
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