Roadmap for increasing - decreasing retirement age, pension conditions from 2021

Retire in the same year, the pension age conditions are the same

The Ministry of Labor, Invalids and Social Affairs is drafting a Decree regulating the retirement age and pension eligibility; effective from January 1, 2021. Accordingly, it details the roadmap for adjusting the retirement age and pension eligibility according to Article 169 of the Labor Code (amended).

This creates a favorable legal basis for agencies, units, enterprises and employees to implement labor law provisions on retirement age, pension conditions and other relevant legal provisions.

In Clause 2, Article 169 of the Labor Code, the retirement age for employees in normal working conditions will be adjusted from 2021, with a roadmap of increasing by 3 months each year for male employees until reaching 62 years old in 2028; and increasing by 4 months each year for female employees until reaching 60 years old in 2035.

The Draft Decree has provided more detailed regulations according to the table showing each year of retirement age (from 2021) which will be applied to specific employees according to month and year of birth.

Accordingly, the regulation of retirement age ensures the principle: employees who retire and receive pension in the same year have the same conditions for retirement age.

Specifically, for male workers born from January 1961 to September 1961, they will reach retirement age in 2021, at 60 years and 3 months. Male workers born from October 1961 to June 1962 will reach retirement age in 2022, at 60 years and 6 months...

Female workers born between January 1966 and August 1966 will reach retirement age in 2021 and will retire at 55 years and 4 months. Female workers born between September 1966 and April 1967 will reach retirement age in 2022 and will retire at 55 years and 8 months…

Retirement age will not exceed 65 years old for women by 2035

Workers who retire at a lower age include: workers with reduced working capacity; those doing particularly arduous, toxic, or dangerous jobs; those doing arduous, toxic, or dangerous jobs; those working in areas with particularly difficult socio-economic conditions may retire at a lower age, but not more than 5 years older than the prescribed age.

The draft Decree also stipulates that retirement at a lower age will be implemented according to a similar roadmap (from 2021), applicable to specific employees according to month and year of birth.

Those who have reduced working capacity; work in particularly arduous, toxic, or dangerous jobs; work in arduous, toxic, or dangerous jobs; work in areas with particularly difficult socio-economic conditions can retire at a lower age but not more than 5 years older than the prescribed age.

Workers with high professional and technical qualifications and some special cases can retire at a higher age but not more than 5 years older than the regulations.

The higher retirement age will also be increased accordingly, not exceeding 67 years old for men in 2028 and not exceeding 65 years old for women in 2035.

The decision to retire at an older age must ensure the following principles and conditions: objectivity, fairness, transparency and compliance with regulations; the agency has a need to employ the employee; the individual has the desire, is healthy and is not under disciplinary review, investigation, prosecution, trial or disciplinary action by the Party or government.

In addition to regulations on retirement age, the draft Decree also stipulates conditions for pension entitlement for employees receiving pension before January 1, 2021 and employees receiving pension from January 1, 2021 onwards.

Also, regulations on pension conditions for employees who have both compulsory social insurance and voluntary social insurance payment periods are required to comply with the provisions of Clause 1, Article 219 of the Labor Code.