National Assembly approves new pension calculation method

From January 1, 2018, the pension level is calculated at 45% of the average monthly salary for social insurance contributions corresponding to 15 years of contributions for female workers and 16 years for male workers.

On the morning of November 20, the National Assembly voted to pass the draft revised Law on Social Insurance with an approval rate of more than 71%, although there were still many opposing opinions, even proposals not to pass the bill at this session. The law consists of 9 chapters and 125 articles; expected to take effect from January 1, 2016.

Accordingly, the monthly pension calculation method is amended to gradually increase the number of years of contribution. Specifically, from January 1, 2018, the pension level is equal to 45% of the average monthly salary of social insurance contribution, corresponding to 15 years for female workers and 16 years for male workers. For male workers, from 2019, this level corresponds to 17 years, in 2020 it is 18 years, in 2021 it is 19 years, from 2022 onwards it is 20 years. After that, for each additional year, the worker is calculated by an additional 2%, with a maximum of 75%.

According to Chairwoman of the Committee for Social Affairs Truong Thi Mai, implementing the roadmap like this will give workers time to adapt to the new policy, minimizing adverse impacts on retirees, especially female workers.

Photo: Anh Quan.

In addition, the average monthly salary used to calculate public sector pensions is also adjusted according to the roadmap. Specifically, the average of the last 15 years from the effective date of the law (July 1, 2015) to December 31, 2019 is calculated; from January 1, 2020 to December 31, 2024, the average of the last 20 years is calculated; from January 1, 2025 onwards, the average of the entire period is calculated.

The private economic sector is implementing regulations on calculating the average monthly salary for social insurance contributions to calculate pensions.

The revised Law on Social Insurance also expands the scope of compulsory social insurance participation to two more groups: employees with 1-3 month labor contracts and part-time workers in communes, wards and towns. The social insurance agency is also assigned the additional function of inspecting the payment of social insurance, unemployment insurance and health insurance.

Regarding maternity leave, female workers are entitled to 6 months off work when giving birth. In case of twins or more, from the second child onwards, the mother gets 1 more month for each child. The husband also gets 5 days off when the wife gives birth normally and 7 days if the wife gives birth by cesarean section or prematurely. In case the wife gives birth to twins, the husband gets 10 days off, from triplets or more, each additional child gets 3 more days off...

According to vnexpress