Retiring at the end of 2025, pension opportunities will expand, up to a maximum rate of 75%
The Law on Social Insurance (SI) has been amended with many new contents related to retirement age, pension and pension benefits.
Reducing social insurance payment time, expanding pension opportunities
The amended Social Insurance Law, effective from July 1, 2025, has adjusted many important contents related to the conditions and calculation of pensions. One of the notable points is the reduction of the minimum period of social insurance payment, thereby expanding the opportunity to receive monthly pension for employees.
According to the new regulations, employees only need to pay social insurance for 15 years to be eligible for pension, instead of 20 years as before. This regulation is especially meaningful for those who are late or have an uninterrupted payment process.
In addition, the law also specifically stipulates the conditions for early retirement for employees with reduced working capacity or working in harsh, toxic, or dangerous environments.
How to calculate the average salary for social insurance contributions
According to Article 72 of the Social Insurance Law 2024, the average monthly salary used as the basis for social insurance contributions to calculate pensions is determined based on the number of years of final participation in social insurance, and there are differences between groups of subjects.
For those receiving salaries under the State regime
In case the employee has the entire period of social insurance payment according to the salary regime prescribed by the State, the average salary level is determined in each stage as follows:
Participating in social insurance before January 1, 1995: average of the last 5 years
From January 1, 1995 to December 31, 2000: average of the last 6 years
From 1-1-2001 to 31/12-2006: average of the last 8 years
From January 1, 2007 to December 31, 2015: average of the last 10 years
From January 1, 2016 to December 31, 2019: average of the last 15 years
From January 1, 2020 to December 31, 2024: average of the last 20 years
From January 1, 2025 onwards: the average total social insurance payment period
For those receiving salaries decided by enterprises
For employees who have the entire period of social insurance payment according to the salary regime decided by the employer, the average salary used as the basis for social insurance payment is calculated over the entire participation period.
In case of social insurance payment under both regimes
If the employee has paid social insurance according to the salary regime prescribed by the State and the salary regime decided by the employer, the average salary will be calculated for the entire payment period. In which, the period of salary under the State regime is calculated on average according to the above-mentioned milestones.
How to calculate the pension rate from 2025
According to Vietnam Social Insurance, employees who retire from 2025 will be entitled to pension according to the new regulations of the Social Insurance Law 2024. The monthly pension is determined based on the pension rate and the average monthly salary for social insurance contributions.
Female workers: Paying 15 years of social insurance will receive 45% of the average salary
Each additional year of contribution is added by 2%
Maximum rate not more than 75%
Male workers: Paying 20 years of social insurance is entitled to 45%
Each additional year of contribution is added by 2%
Maximum rate 75%
In case of payment from 15 to under 20 years, the starting rate is 40%, increasing by 1% per year
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