Early Retirement Rules and Maximum Pension Limits in 2025

The 2014 Social Insurance Law, along with related decrees such as Decree No. 115/2015/ND-CP and Decree No. 178/2024/ND-CP, have established specific regulations on pension calculation, particularly for early retirement cases. What conditions must be met to receive the maximum pension, and what benefits do early retirees under the workforce reduction program enjoy?

Current Pension Calculation Regulations

According to the Social Insurance Law, the monthly pension of employees is calculated based on two main factors: the pension benefit percentage and the average monthly salary contributed to social insurance (SI).

For Male Employees

Male employees retiring from 2022 onwards will initially apply a 45% pension rate corresponding to 20 years of SI contributions.
For each additional year of contribution, an extra 2% is added, but the maximum does not exceed 75%.
To reach the maximum pension rate of 75%, male employees need at least 35 years of mandatory SI contributions.

For Female Employees

Similarly, female employees need 30 years of mandatory SI contributions to receive the maximum pension rate of 75%.

Early Retirement Cases

If employees retire early due to reduced work capacity, their pension rate is reduced by 2% for each year of early retirement. However, those retiring early under the workforce reduction program according to Decree No. 178/2024/ND-CP are exempt from this deduction.

Special Conditions for Early Retirees Under Workforce Reduction

Under Decree No. 178/2024/ND-CP, officials, civil servants, managers, and defense force members under the workforce reduction program who retire early will not have their pension rates reduced if they meet the required number of SI contributions:

Males: At least 35 years of SI contributions.
Females: At least 30 years of SI contributions.

Thus, even if they retire early or fall short of 10 years in age, employees can still be considered for retirement without losing any percentage of their pension.

Eligible Recipients of This Policy

This policy applies to the following groups:

Officials, civil servants, managerial staff, and village-level civil servants.
Workers under employment contracts before January 15, 2019.
Officers, professional soldiers, defense workers, and personnel of the Vietnam People’s Army.
Officers, non-commissioned officers, police workers, and contract laborers of the Vietnam People’s Public Security.
Workers in sensitive organizations.

Retirement Age Schedule

Since 2021, the retirement age for employees has been gradually adjusted to align with socio-economic development. Specifically:

Males: The normal retirement age increases by 3 months per year until it reaches 62 years old in 2028.
Females: The retirement age increases by 4 months per year, expected to reach 60 years old in 2035.

In 2025:

The retirement age for males is 61 years and 3 months.
The retirement age for females is 56 years and 8 months.

Conclusion

Understanding the rules regarding pensions and early retirement helps employees plan their personal finances more effectively. Especially for those under the workforce reduction program, being well-informed ensures maximum benefits upon retirement. Always stay updated with official sources to avoid missing any significant changes.

For more details, refer to the 2014 Social Insurance Law and Decree No. 178/2024/ND-CP.

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