Illustrative image (source: internet)

One of the adjustments in Circular No. 6 is the calculation of odd months for early retirement benefits. Specifically:

1. In case, the period of early retirement has odd months under 6, the percentage of benefits shall be remained. If the period has odd months over 6, the reduction shall be 1%.

Former regulation: the retirement age has odd time up to 6 months, the reduction is 1%, no reduction of percentage if over 6 months due to retirement prior to the age of such year.

2. From January 1st, 2021, the age threshold for calculating the number of early retirement years which

is set as the basis for calculating the reduction of pension rate, shall comply with Clause No. 3, Article No. 7 of Decree No. 135/2020/ND-CP.

Relevant to the methods of pension calculation, Circular No. 6 added 02 new additional regulations as follows:

1. For people participating in non-specialized work in communes/ wards/ towns, with compulsory social insurance pension payment of full 20 year or more for those not to participate in non-specialized work in communes/ wards/ towns, of whose pension is lower than the base salary at the time of pension enjoyment: Apply the regulation for the minimum monthly pension to be equal to the base salary.

2. The period of social insurance premium payment corresponding to the pension rate of 45% is determined based on the beginning of the monthly pension enjoyment of employees.

Circular No. 6/2021/TT-BLDTBXH shall take effect from September 1st, 2021.