Notes when accumulating social insurance contribution time to receive pension

Many workers who have worked in many agencies and businesses and paid social insurance (SI) in different places wonder if the contribution period is added to calculate pensions or not. Dr., Lawyer Dang Van Cuong (Hanoi Bar Association) explained this issue as follows.

- Lawyer, is the time of social insurance contribution at many units allowed to be accumulated for pension consideration?

In principle, yes. The time of social insurance participation of employees at different units and enterprises is recorded during the social insurance participation process and is included in the total social insurance contribution time when settling benefits, provided that those are legal social insurance contribution periods and there is no duplication of contribution time.

This is very important because in reality a worker can work in many different businesses, agencies or localities throughout the working process.

The change of workplace does not waste the time spent paying social insurance. The 2024 Law on Social Insurance stipulates the conditions for enjoying pensions for compulsory social insurance participants in the direction that employees who retire with 15 years of social insurance contributions and meet age conditions, or corresponding conditions for each case, may be entitled to pensions.

A very noteworthy point of the 2024 Social Insurance Law is that it has reduced the minimum contribution period to receive a pension from 20 years to 15 years for cases of enjoying a pension under normal conditions. This is a policy aimed at expanding the opportunity to access pensions for those who have non-continuous social insurance participation or participated in social insurance for a relatively short time.

- Lawyer, so what should workers pay attention to to ensure their rights when accumulating social insurance contribution time in many places to calculate pensions?

Employees need to distinguish between "accumulating contribution time" and "accumulating salary levels everywhere to calculate pensions".

The social insurance contribution period is compiled to determine the conditions and benefit rates. But the pension level is not simply taking the salaries of all companies combined.

The benefit level also depends on the average salary level used as a basis for social insurance contributions and the total contribution period, according to the corresponding regulations of the 2024 Social Insurance Law. According to Article 66 of the 2024 Social Insurance Law, in normal cases, female workers are calculated 45% of the average salary level used as a basis for social insurance contributions corresponding to 15 years of contribution, then each year adding 2%, up to 75%; male workers are calculated 45% corresponding to 20 years of contribution, then each year adding 2%, up to 75%. For male workers with 15 years to less than 20 years, the law has its own formula.

For example, a worker works at enterprise A for 7 years, then transfers to enterprise B for 8 years, if both periods are legally covered by social insurance and there is no overlap in time, then in principle there are a total of 15 years of social insurance contributions. When meeting age conditions and other conditions, this time is counted to consider receiving a pension.

This reflects the nature of social insurance policy: benefits are formed from the entire participation process, not depending on whether employees have worked for one or more businesses.

However, employees need to check the social insurance payment process on the social insurance system to ensure that working hours in different places have been fully recorded. If there is a period that has not been confirmed or social insurance payment data is missing, it is necessary to carry out procedures for adjustment and supplementation before settling the pension regime.

Thank you for the sharing from the lawyer!

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