How to calculate the average pension for social insurance contributions upon retirement

Ms. Le Thi Bich Ngoc (Phu Tho) wondered whether the working time from 1994, when it was still in the probation period, was calculated to determine the average salary for social insurance (SI) contributions of the last 5 years before retirement or not.

According to reports, on January 1, 1994, Ms. Ngoc signed a probationary contract to teach English at the High School of Food Industry Technology (now a college). The contract stated the salary level of grade 2 for high school teachers with university degrees.

However, data on the social insurance management system shows that her salary coefficient for social insurance contributions is 1.33 and the regional allowance coefficient is 0.1. On January 1, 1995, she was officially recruited as a teacher at the school.

On August 1, 2026, Ms. Ngoc was granted retirement according to Decree 154/2025/ND-CP. She wants to know if she is eligible for calculating the average salary for social insurance contributions for the last 5 years before retirement or not.

Regarding this issue, Vietnam Social Security said that based on Article 72 of the 2024 Law on Social Insurance, the time used to calculate the average salary level as a basis for social insurance contributions depends on the time when employees start participating in social insurance and the applicable salary regime.

For employees enjoying the salary regime prescribed by the State and having the entire period of social insurance contribution according to this regime, the number of years of salary used to calculate the average is determined as follows:

Starting to participate in social insurance before January 1, 1995: Calculate the average salary of the last 5 years before retirement.

From January 1, 1995 to December 31, 2000: Calculating the average of the last 6 years.

From January 1, 2001 to December 31, 2006: Calculating the average of the last 8 years.

From January 1, 2007 to December 31, 2015: Calculating the average of the last 10 years.

From January 1, 2016 to December 31, 2019: Calculating the average of the last 15 years.

From January 1, 2020 to December 31, 2024: Calculating the average of the last 20 years.

From January 1, 2025 onwards: Calculate the average of the entire social insurance contribution period.

In case the employee has the entire period of social insurance contribution according to the salary regime decided by the employer, the average level is calculated based on the entire period of social insurance contribution.

If employees have both the time to receive salary according to the State regime and the time to receive salary decided by the employer, the average level is calculated together. In which, the time to receive salary according to the State regime is calculated according to the corresponding regulations in Clause 1, Article 72 of the 2024 Law on Social Insurance.

Comparing with the case of Ms. Le Thi Bich Ngoc, Vietnam Social Security said that if she is eligible for salary benefits prescribed by the State, has the entire period of social insurance contribution according to this regime and started participating in social insurance before January 1, 1995, then the average salary for social insurance contributions of the last 5 years before retirement is calculated.

Thus, the starting time to participate in social insurance is an important basis for determining the number of years of salary used to calculate the average pension. Ms. Ngoc needs to compare the actual social insurance contribution process and the applied salary regime to accurately determine her rights.

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