Article 62 of the 2014 Law on Social Insurance stipulates the adjustment of the average monthly salary for social insurance contributions to calculate public sector pensions with the average levels of the last 5, 6, 8, 10, 15 and 20 years before retirement.
Specifically, employees who are subject to the salary regime prescribed by the State and have paid social insurance for the entire period under this salary regime, the average monthly salary for the number of years of insurance payment before retirement is calculated as follows:
If participating in social insurance before January 1, 1995, the average monthly salary for social insurance contributions of the last 5 years before retirement is calculated.
If participating in social insurance from January 1, 1995 to December 31, 2000, the average monthly salary for social insurance contributions of the last 6 years before retirement is calculated.
If you participate in social insurance from January 1, 2001 to December 31, 2006, the average monthly salary used for social insurance contributions for the last 8 years before retirement will be calculated.
If you participate in social insurance from January 1, 2007 to December 31, 2015, the average monthly salary for social insurance contributions of the last 10 years before retirement will be calculated.
If you participate in social insurance from January 1, 2016 to December 31, 2019, the average monthly salary for social insurance contributions for the last 15 years before retirement will be calculated.
If you participate in social insurance from January 1, 2020 to December 31, 2024, the average monthly salary for social insurance contributions for the last 20 years before retirement will be calculated.
If participating in social insurance from January 1, 2025 onwards, the average monthly salary for social insurance contribution for the entire period will be calculated.
For civil servants and public employees participating in social insurance from January 1, 2025 onwards, pensions will be calculated based on the average monthly salary of the entire period of social insurance payment (Illustration: Hoa Le).
Meanwhile, for employees who have paid social insurance for the entire period according to the salary regime decided by the employer, the average monthly salary for social insurance payment for the entire period will be calculated.
The Ministry of Labor, War Invalids and Social Affairs said that one of the principles of social insurance is that the benefit level is calculated based on the contribution level and contribution period.
The regulation that the pension level is calculated based on the pension rate and the average salary used as the basis for social insurance contributions for the entire contribution period is consistent with the above principle.
Previously, for employees in the state sector, when calculating pensions, it was based on the average salary used as the basis for social insurance contributions for the last few years before retirement.
However, the current Law on Social Insurance has provided a roadmap to calculate the entire social insurance payment process, as in the non-state sector.
According to the Ministry, the Social Insurance Law, which has just been passed and will take effect from July 1, 2025, still inherits the provisions of the current Social Insurance Law on adjusting salaries as the basis for social insurance contributions to calculate pensions.
According to statistics from Vietnam Social Security, the average salary for social insurance contributions of employees in the administrative, career, and party organization groups is 6.936 million VND, and that of employees in the enterprise and cooperative groups is 6.382 million VND. The difference in salary contributions between the two groups is about 9%.
As of December 2023, there are 1.27 million pensioners (retiring and receiving a state salary). The average pension of this group is 6.1 million VND/month.
In both the public and private sectors, pensioners from the Social Insurance Fund have an average benefit of 5.6 million VND/person/month.
Source: https://dantri.com.vn/an-sinh/thay-doi-cach-tinh-luong-huu-cua-cong-chuc-vien-chuc-dong-bhxh-tu-nam-2025-20240806190753904.htm
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