Female workers will be 'compensated' for their pensions

It is expected that by the end of this year, about 91,600 workers who are disadvantaged by the pension calculation formula (according to the Social Insurance Law - 2014) will receive direct adjustment support through their pensions.

Regarding the funding source for the adjustment, according to the initial calculation of Vietnam Social Security, the number of female employees who start receiving pensions in the period from 2018 to 2021 and have paid social insurance for 20 to 29 years and 6 months is about 91,600 people, with an estimated budget of about 219.5 billion VND. Through discussion, Deputy Minister of Labor, Invalids and Social Affairs Le Quan said that this is the initial preliminary assessment figure of Vietnam Social Security if applied according to the provisions of the 2014 Social Insurance Law.

It is expected that about 91,600 female workers retiring in the period 2018 - 2021 will receive pension compensation.

However, according to the Resolution at the 5th Session of the 14th National Assembly (NA) on June 15, the NA agreed to assign the Government to issue a document implementing the pension adjustment policy for female workers who started receiving pensions from January 1, 2018 to December 31, 2021 and were more adversely affected than male workers.

“The National Assembly’s policy only supports compensation for female workers, so the total estimated budget for the period from 2018 to 2021 is about 80 billion VND, taken from the Social Insurance Fund. Previously, the Ministry of Labor, Invalids and Social Affairs worked with the Vietnam General Confederation of Labor, the Vietnam Women’s Union, the Ministry of Justice, and the Ministry of Finance and agreed on this support plan,” said Mr. Le Quan.

Workers can receive pension after 15 years of work.

(Baonghean.vn) - Employees who pay social insurance (SI) for 15 years willreceive pension if retired (currently 20 years)m).

According to the Ministry of Labor, Invalids and Social Affairs, the support for female workers who retire from the beginning of 2018 and have their pension reduced by 2-10% will be adjusted based on the principle of directly adding to their pension. The pension level after adjustment will be the basis for calculating pension adjustments in subsequent pension adjustments according to the provisions of Article 57 of the Law on Social Insurance.

The adjustment level ensures the principle of "full compensation" of the difference in pension if calculated according to the provisions of Clause 2, Article 56 and Clause 2, Article 74 of the Law on Social Insurance (without a roadmap) compared to if implemented according to the roadmap like men. Specifically, the pension rate will be compensated for female employees retiring in 2018 at 8%, in 2019 at 6%, in 2020 at 4%, in 2021 at 2% and from 2022, there will be no compensation because they will end the roadmap like men. The corresponding costs are as follows: 2018: 27.8 billion VND; 2019: 23.7 billion VND; 2020: 18.1 billion VND; 2021: 10.3 billion VND.

“Because the time of social insurance contribution of female employees is different, the rate of pension deduction is also different. This leads to different adjustment levels, depending on the time of social insurance contribution and the year of starting to receive pension”, Mr. Le Quan said and informed that the Ministry of Labor, Invalids and Social Affairs is urgently developing the above decree. At the latest, in about 2-3 months, the draft decree will collect opinions from ministries and branches. The compensation for female employees retiring from January 1, 2018 will be implemented immediately after the decree is issued.