Adjusting pensions for female workers retiring from 2018 - 2021

This Decree stipulates the pension adjustment policy for female employees who start receiving pensions in the period from 2018 to 2021 and have paid social insurance for 20 years to 29 years and 6 months, and are more adversely affected than male employees due to changes in the pension calculation method according to the provisions of the 2014 Law on Social Insurance compared to the 2006 Law on Social Insurance.

Accordingly, female employees who start receiving pension from January 1, 2018 to December 31, 2021 and have from 20 years to 29 years and 6 months depending on the period of social insurance payment and the time of starting to receive pension, the pension level will be adjusted to the pension level calculated according to the provisions of Clause 2, Article 56 or Clause 2, Article 74 of the Law on Social Insurance 2014 plus the adjustment level (1).

The adjustment level is calculated by multiplying the pension level according to the provisions of Clause 2, Article 56 or Clause 2, Article 74 of the Law on Social Insurance 2014 at the time of starting to receive pension by the adjustment rate corresponding to the period of social insurance payment and the time of starting to receive pension, specifically as follows:

For female employees who start receiving pension from January 1, 2018 to December 31, 2021 and have from 20 years to 29 years and 6 months of starting to receive pension in the period from January 1, 2018 to June 30, 2018, pension adjustment shall be made according to the provisions in (1) above first, then adjusted according to the provisions in Decree No. 88/2018/ND-CP dated June 15, 2018 of the Government on adjusting pensions and monthly social insurance benefits.

The Decree takes effect from December 24, 2018.

Illustration