Illustrative Photo

I. For the employees participating in compulsory social insurance:

1. For employees starting to retire during the period from January 1st to December 31st, 2021:

The employee's monthly pension is calculated as follows:

Monthly pension = [Monthly pension rate (%)] x [Monthly salary paid for social insurance on average]

In which:

(1) The rate (%) of enjoying the monthly pension is determined as follows:

**For male workers:

- In case of starting to enjoy pension during the period from January 1st to December 31st, 2021: To claim 45% of full 19 years (currently 18 years) of social insurance premium payment;

In case of starting to enjoy pension from January 1st, 2022 onwards: To claim 45% of full 20 years of social insurance premium payment.

- After that, 2% more will be added for every additional year of contributing to social insurance.

The rate (%) of enjoying the maximum monthly pension is 75%.

**For female workers:

- To claim 45% of full 15 years of social insurance premium payment.

- After that, 2% more will be added for every additional year of contributing to social insurance.

The rate (%) of enjoying the maximum monthly pension is 75%.

**In case the employee is entitled to a pension prior to the prescribed age due to a decrease in working capacity as prescribed, the rate (%) of enjoying the monthly pension is calculated as above, then 2% will be decreased for each year of retiring prior to the prescribed age.

(2) Average monthly salary on which social insurance premiums are based is determined at Article 62, Article 64 of 2014 Law on Social Insurance, Article 9, Article 10 of Decree 115/2015 and Article 20 of Circular 59/2015/TT-BLDTBXH.

2. Lump-sum allowance upon retirement

Employees who have paid social insurance plan for a period exceeding the number of years corresponding to the 75% pension rate are entitled to not only pension but also a lumpsum allowance upon retirement.

The lump-sum allowance level shall be calculated based on the number of years of social insurance premium payment in excess of the number of years corresponding to the 75% pension rate, with half of the average monthly salary on which social insurance plans are based for each of these years.

II. For people participating in voluntary social insurance

1. Monthly pension rates

The pension rates of a voluntary social insurance participant starting to enjoy pension from January 1, 2021 is calculated as follows:

Monthly pension = [Rate (%) of enjoying monthly pension] x [Average monthly salary paid for social insurance]

In which:

(1) The rate (%) of enjoying the monthly pension is determined as follows:

**For male:

- In case of starting to enjoy pension during the period from January 1st to December 31st, 2020: To claim 45% of full 19 years (currently 18 years) of social insurance premium payment; In case of starting to enjoy pension from January 1st, 2022 onwards: To claim 45% of full 20 years of social insurance premium payment.

- After that, 2% more will be added for every additional year of contributing to social insurance.

The rate (%) of enjoying the maximum monthly pension is 75%.

**For female:

- To claim 45% of full 15 years of social insurance premium payment.

- After that, 2% more will be added for every additional year of contributing to social insurance.

The rate (%) of enjoying the maximum monthly pension is 75%.

(2) The average monthly income on which social insurance premiums are based is the average of monthly incomes for which social insurance premiums have been paid in the entire period of premium payment. Monthly incomes for which social insurance premiums paid for use as a basis for calculating the average monthly income on which social insurance premiums are based are adjusted on the basis of the consumer price index of each period according to the Government's regulations (see details in Article 4 of Decree 134/2015/ND-CP).

2. Lump-sum allowance upon retirement

Similar to employees participating in compulsory social insurance, those who have paid social insurance plan for a period exceeding the number of years corresponding to the 75% pension rate are entitled to not only pension but also a lumpsum allowance upon retirement.

The lump-sum allowance level shall be calculated based on the number of years of social insurance premium payment in excess of the number of years corresponding to the 75% pension rate, with half of the average monthly salary on which social insurance plans are based for each of these years./.