2 options to increase retirement age to 62 for men and 60 for women

The Ministry of Labor, War Invalids and Social Affairs (MOLISA) is drafting the revised Labor Code with many important contents such as: Expanding the framework for agreements on maximum overtime hours; adjusting the increaseretirement age

Regarding the adjustment to increase the retirement age, the draft proposes two options to increase the retirement age as follows:

Option 1:From January 1, 2021, the retirement age of employees in normal working conditions is 60 years and 3 months for men and 55 years and 4 months for women; then, each year it increases by 3 months for men and 4 months for women until men reach 62 years old and women reach 60 years old.

Option 2:From January 1, 2021, the retirement age of employees under normal working conditions is 60 years and 4 months for men and 55 years and 6 months for women; then, each year it increases by 4 months for men and 6 months for women until men reach 62 years old and women reach 60 years old.

The Ministry of Labor, Invalids and Social Affairs said that through survey, assessment and consultation with the parties during the drafting process, the majority of opinions proposed to choose Option 1. Both options stipulated in the draft have a slow increase roadmap, however, Option 1 is the option with more advantages, better prevention of risks when adjusting age for the labor market, avoiding shock to the labor market, maintaining social stability and in line with international practices.