04 NEW INFORMATION DIRECTLY AFFECTING THE PENSION BENEFITS

1. 1. The pension in 2021 has not increased

Along with the increase in the base salary every year on July 01st, the pension will also be adjusted to increase simultaneously at this time.

However, due to the outbreak of the Covid-19 pandemic, the base salary in 2021 remained unchanged at 1,490,000 VNĐ/ month. Specifically, in Resolution 128/2020/QH14, the National Assembly advocates:

In 2021, there is not yet any adjustment to the base salary or the poverty line.

Thus, the pension level in 2021 will not be adjusted to increase.

2. 2. The pension of January 2021 and February 2021 is paid on aggregate

As usual, on the occasion of the Lunar New Year, the pensioner will be paid 2 months’ salary at the same time. This year is no exception.

Recently, Vietnam Social Security has sent documents to the Social Insurance Agency of the provinces and municipalities for the payment of 2 months of pension (January and February 2021) at the same time.

The combined payment aims to create conditions for pensioners to enjoy the traditional New Year.

3. 3. Men who are full 60 years old, women are full 55 years old are not yet entitled to pension

Previously, according to the provisions of Point a, Clause 1, Article 54 of the Law on Social Insurance 2014, men from full 60 years old, women from full 55 years or older, paying social insurance premiums for full 20 years or more will be entitled to a pension.

However, from January 01st, 2021, the above provisions will be revised by the Labor Code 2019. Accordingly, the condition for retirement age in 2021 is adjusted as follows:

– The male employee must be full 60 years and 03 months;

– Female employees must be full 55 years and 04 months.

Thus, employees in 2021 who are full 60 years old (for men) and full 55 years old (for women) have not yet received pension benefits, but have to wait for 3 more months for men and 4 more months for women.

4. 4. Change the number of years of social insurance payment for male employees to calculate the pension

Under the provisions of Point a, Clause 2, Article 56 and Point a, Clause 2, Article 74 of the Law on Social Insurance 2014.

The employee’s monthly pension is calculated by 45% of the average monthly salary paid for social insurance and corresponding to the number of years of social insurance payment.

In which, if he retires in 2021, the number of years he pays for social insurance for male employees is calculated as 19 years (while in 2020 it is 18 years).