Before July 1
The method for calculating pensions before July 1 is outlined in Article 56 of the 2014 Law on Social Insurance (BHXH) and further detailed in Article 7 of Decree No. 115/2015/ND-CP.
Accordingly, a worker’s monthly pension is calculated by multiplying the pension benefit rate by their average monthly salary used as the basis for BHXH contributions.
For male workers, the pension benefit rate starts at 45% of the average monthly salary corresponding to 20 years of BHXH contributions. For each additional year of contributions, an extra 2% is added, with a maximum rate of 75% (equivalent to 35 years of contributions).
For female workers, the pension benefit rate starts at 45% of the average monthly salary corresponding to 15 years of BHXH contributions. For each additional year of contributions, an extra 2% is added, with a maximum rate of 75% (equivalent to 30 years of contributions).
If a worker retires early due to reduced work capacity, the pension benefit rate is reduced by 2% for each year of early retirement.
In cases where workers have contributed to BHXH for more years than required to reach the maximum pension rate of 75%, they will also receive a one-time lump-sum benefit upon retirement. This benefit is calculated based on the number of years exceeding the threshold: for each additional year, the worker receives 0.5 times their average monthly salary used as the basis for BHXH contributions.
From July 1 Onward
Starting July 1, the pension calculation method will follow Article 66 of the 2024 Law on Social Insurance.
For female workers, the monthly pension is calculated as 45% of the average monthly salary used as the basis for BHXH contributions corresponding to 15 years of contributions. For each additional year, 2% is added, with a maximum rate of 75% (equivalent to 30 years of contributions).
For male workers, the monthly pension is calculated as 45% of the average monthly salary used as the basis for BHXH contributions corresponding to 20 years of contributions. For each additional year, 2% is added, with a maximum rate of 75% (equivalent to 35 years of contributions).
Male workers who have contributed to BHXH for between 15 and under 20 years will receive a monthly pension rate starting at 40% of the average monthly salary corresponding to 15 years of contributions. For each additional year, 1% is added. This represents a key difference from the 2014 Law on Social Insurance.
Under the 2024 Law on Social Insurance, workers retiring early due to reduced work capacity will also face a reduction of 2% in their pension benefit rate for each year of early retirement.
If a worker has contributed to BHXH for more years than required to reach the maximum pension rate of 75%, they will also receive a one-time lump-sum benefit upon retirement. This benefit applies to the years exceeding the threshold required for the maximum pension (30 years for women, 35 years for men). The lump-sum benefit equals 0.5 times the average monthly salary used as the basis for BHXH contributions for each additional year.
For workers who meet the pension eligibility criteria but continue contributing to BHXH, the lump-sum benefit is calculated as twice the average monthly salary used as the basis for BHXH contributions for each additional year beyond the statutory retirement age. This is another key difference from the 2014 Law on Social Insurance.
Source link: https://dantri.com.vn/an-sinh/cach-tinh-luong-huu-va-tro-cap-mot-lan-nam-2025-20250214120827935.htm
