Pension rate for early retirees due to labor decline

Employees who participate in compulsory social insurance (SI) will receive pensions when they meet the conditions prescribed by the Social Insurance Law 2024. The monthly pension is calculated based on the formula:

Monthly pension = Pension rate × Average monthly salary for social insurance contributions

Pension rate according to social insurance payment period

For male workers: If they have paid social insurance for 20 years, the benefit rate is 45%. After that, each additional year of contribution is added by 2%, up to 75%.

For female workers: If they have paid social insurance for 15 years, the benefit rate is 45%, with an additional 2% for each year, up to a maximum of 75%.

In case the male employee has paid social insurance for 15 years to less than 20 years, the monthly pension is equal to 40% of the average salary used as the basis for social insurance contributions for the corresponding 15 years, then each additional year of contributions is calculated at 1%.

Early retirement due to reduced working capacity

Employees who retire early due to reduced working capacity will have their pension rate reduced compared to the standard retirement age. Specifically:

For each year of early retirement, the pension rate is deducted by 2%.

In case of early retirement 6 months, no deduction.

Retirement from 6 months to less than 12 months, down 1%.

This helps ensure the rights of employees who retire early, but also encourages consideration of retirement time to optimize the pension received.

Calculating pensions according to international treaties

For employees who have paid social insurance according to international treaties, but have paid in Vietnam for less than 15 years, each year of payment will be calculated at 2.25% of the average salary used as the basis for social insurance payment.

Early retirement due to reduced working capacity will directly affect the pension rate. Employees need to carefully consider the social insurance payment period and retirement age to ensure long-term benefits.

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