2 options to determine the pension period from July 1, 2025

The Ministry of Home Affairs has drafted a Circular detailing the time of pension payment, calculation, and determination of benefits for each case to resolve pension regimes according to the provisions of Clause 4, Article 101 of the Law on Social Insurance (SI).

Time of pension

Accordingly, the pension period for voluntary social insurance participants with a social insurance payment period of 15 years or more is calculated from the first day of the month following the month of retirement age according to regulations.

In case the social insurance participant continues to pay voluntary social insurance after being eligible for pension, the pension payment time is the first day of the month following the month of stopping payment and having a pension request.

In case the social insurance participant voluntarily pays a one-time payment for the remaining years according to regulations, the pension payment time is the first day of the month following the month of full payment for the remaining years.

The pension for voluntary social insurance participants before January 1, 2021, and 20 years or more of voluntary social insurance contributions, is calculated from the first day of the month following the month to be 60 years old for men and 55 years old for women. Except for cases where voluntary social insurance participants wish to receive pensions according to the provisions of the Social Insurance Law.

In case the pension payment period according to the above regulations is determined before July 1, 2025, the pension payment period is from July 1, 2025.

In case the date and month of birth cannot be determined (only a year of birth), the pension is calculated from the first day of the month following the month eligible for pension according to regulations. In which, the month of retirement age is determined on the basis of taking the January 1 of the year of birth as the basis for determining the age of the employee.

How to calculate pension levels

Regarding the calculation of pension benefits for voluntary social insurance participants, the Department of Salary and Social Insurance (Ministry of Home Affairs) said that through review, it was found that the provisions in the Social Insurance Law and the draft Decree detailing the Social Insurance Law on voluntary social insurance have specifically regulated this issue, and ensured implementation.

Therefore, basically this content only quotes the provisions of the Social Insurance Law and the draft Decree.

However, for the content of the social insurance payment period to determine the voluntary social insurance participants eligible for pension, and calculate the pension for them according to one of the following payment methods: 3 months at a time; 6 months at a time; 12 months at a time; once for many years later, it is necessary to clarify to avoid arising many different understandings in the implementation process.

Accordingly, the draft Circular proposes two options.

Option 1: The last month of the payment method that the voluntary social insurance participant has paid (even though the employee previously met the age and payment period requirements).

Option 2: Month in which voluntary social insurance participants meet the age requirements and are eligible for pension. At that time, 2 cases arise: Record the payment period up to the time of proposal and refund the number of months paid afterwards; or record the payment period up to the end of the payment method.

Therefore, the Department of Salary and Social Insurance proposes more specific guidance, in the direction that the social insurance payment period for voluntary social insurance participants who are in the process of implementing one of the above payment methods is calculated at the time the voluntary social insurance participant completes the selected payment method.

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