Conditions for enjoying a maximum pension of 75% from 2027

According to the provisions of the Law on Social Insurance (BHXH) in 2024, the pension benefit level is determined based on the pension benefit rate and the average salary or income level used as the basis for social insurance contributions.

For compulsory social insurance participants, Article 66 of the Law on Social Insurance stipulates that the maximum pension level is equal to 75% of the average salary used as the basis for social insurance contributions.

In case a worker has a period of social insurance contributions higher than the number of years corresponding to the pension benefit rate of 75%, when retiring, in addition to the pension, they will also receive a one-time allowance for the period of contribution exceeding.

Male and female workers have different years of social insurance contribution to achieve the maximum benefit rate. For female workers, 15 years of social insurance contribution corresponds to a benefit rate of 45%, then for each additional year of contribution, an additional 2% is calculated, the maximum level is 75%. Thus, female workers need to have enough 30 years of social insurance contribution to achieve a maximum benefit rate of 75%.

Meanwhile, male workers who have paid social insurance for 20 years are calculated a benefit rate of 45%; then for each additional year of contribution, an additional 2% is calculated. To achieve a maximum benefit rate of 75%, male workers need to have paid social insurance for 35 years.

In case male workers have a social insurance contribution period of 15 years to less than 20 years, the pension level is calculated at 40% corresponding to 15 years of social insurance contribution; then for each additional year of contribution, an additional 1% is calculated.

This new regulation reduces the minimum social insurance contribution time to receive a pension, creating conditions for social insurance participants, including male workers who participate late or have non-continuous contribution time, to have the opportunity to receive a monthly pension.

For employees receiving pensions due to reduced working capacity, the pension level is calculated according to the corresponding benefit rate, then reduced by 2% for each year of early retirement. In case the early retirement period is less than 6 months, the rate is not reduced; from 6 months to less than 12 months, it is reduced by 1%.

For voluntary social insurance participants, the pension level is calculated based on the benefit rate and the average income level used as a basis for social insurance contributions. Participants can choose an income level as a basis for contributions suitable to their ability.

According to the 2019 Labor Code, employees are entitled to a pension when they ensure the conditions on retirement age and social insurance contribution period according to the provisions of the law on social insurance.

The retirement age of workers in normal working conditions is adjusted according to a roadmap until reaching 62 years old for male workers in 2028 and 60 years old for female workers in 2035.

Since 2021, the retirement age for workers in normal working conditions is 60 years and 3 months for male workers and 55 years and 4 months for female workers; after that, it increases by 3 months each year for male workers and 4 months for female workers.

The retirement age for male workers in 2027 is 61 years and 9 months, and for female workers is 57 years and 4 months.

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