Things to pay attention to when paying social insurance, avoid enjoying low pensions
The monthly pension level is calculated based on the benefit rate and the average salary level used as the basis for social insurance contributions.
According to current regulations, the method of determining this average level depends on the salary regime and the time when employees start participating in social insurance.
Some cases calculate the last 5 years, some cases calculate the entire process
Law on Social Insurance No. 41/2024/QH15, effective from July 1, 2025, stipulates in Article 66 on the monthly pension level.
For female workers, the monthly pension level is equal to 45% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions; then for each additional year of contribution, an additional 2% is calculated, the maximum level is 75%.
For male workers, the monthly pension level is equal to 45% of the average salary used as the basis for social insurance contributions corresponding to 20 years of social insurance contributions; then for each additional year of contribution, an additional 2% is calculated, the maximum level is 75%.
For male workers with social insurance contributions from 15 years to less than 20 years, the monthly pension level is equal to 40% of the average salary used as the basis for social insurance contributions corresponding to 15 years of contribution; then for each additional year of contribution, an additional 1% is calculated.
The method of determining the average salary level as the basis for social insurance contributions is specified in Article 72 of the 2024 Social Insurance Law.
For employees who have paid full social insurance according to the salary regime prescribed by the State, the time taken to calculate the average depends on the time of starting to participate in social insurance.
Specifically, people who start participating in social insurance before January 1, 1995 calculate the average salary as the basis for social insurance contributions for the last 5 years before retirement.
People who start participating from January 1, 1995 to the end of December 31, 2000 count the last 6 years; from January 1, 2001 to the end of December 31, 2006 count the last 8 years; from January 1, 2007 to the end of December 31, 2015 count the last 10 years.
Participants starting from January 1, 2016 to the end of December 31, 2019 count the last 15 years; from January 1, 2020 to the end of December 31, 2024 count the last 20 years.
People who start participating in social insurance from January 1, 2025 onwards calculate the average salary as the basis for social insurance contributions for the entire period of social insurance contribution.
For employees who have paid social insurance for the entire time according to the salary regime decided by the employer, Clause 2, Article 72 stipulates the calculation of the average salary as the basis for paying social insurance for the entire time.
There is both time to receive state salary and business salary
Clause 3, Article 72 of the 2024 Law on Social Insurance stipulates that employees who both have a period of social insurance contribution belonging to the subjects of the salary regime prescribed by the State and have a period of social insurance contribution according to the salary regime decided by the employer shall calculate the average salary as the basis for general social insurance contributions for the periods.
In which, the contribution period according to the salary regime prescribed by the State is calculated on average according to the provisions of Clause 1, Article 72.
Clause 4, Article 15 of Decree 158/2025/ND-CP details: for the social insurance contribution period under the subject of implementing the salary regime prescribed by the State, the average level is calculated according to Clause 1, Article 72 on the total contribution period according to the salary regime prescribed by the State. In case the number of years is not sufficient as prescribed, the average salary used as a basis for contribution for the months already contributed shall be calculated.
Circular 12/2025/TT-BNV also stipulates the formula for calculating the average level for cases with social insurance contribution time according to both salary regimes.
Accordingly, the total salary used as a basis for social insurance contributions according to the salary regime prescribed by the State and the total salary used as a basis for social insurance contributions according to the salary regime decided by the employer are included in the formula to determine the general average level on the total number of months of social insurance contributions.
Social insurance contribution salaries are adjusted according to regulations
Article 73 of the 2024 Law on Social Insurance stipulates the adjustment of salaries as the basis for compulsory social insurance contributions.
For employees who are subject to the state-regulated salary regime and start participating in social insurance before January 1, 2016, the salary used as a basis for social insurance contributions is adjusted according to the reference level at the time of enjoying the pension regime.
For people subject to the state-regulated salary regime who start participating in social insurance from January 1, 2016, the salary used as a basis for social insurance contributions is adjusted according to regulations applicable to people implementing salary regimes decided by employers.
According to Clause 2, Article 73, the salary used as a basis for social insurance contributions of employees subject to the salary regime decided by the employer is adjusted based on the consumer price index of each period according to the Government's regulations.
Article 16 of Decree 158/2025/ND-CP specifically stipulates that the salary as a basis for social insurance contributions after adjustment of each year is determined by the salary as a basis for social insurance contributions of that year multiplied by the adjustment coefficient of the corresponding year.
Decree 158/2025/ND-CP also stipulates a number of specific and special cases when determining the average salary level as the basis for social insurance contributions. Therefore, for each retirement dossier, in addition to the general principles mentioned above, it is also necessary to compare the social insurance participation process and regulations applicable to specific cases.
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