Will have pension of 700,000 VND per month

Expectation and then disappointment are the feelings of many workers towards the current social insurance policy related to retirement regime.

Recently, the case of Ms. Truong Thi Lan, a teacher at Le Duan Kindergarten (Cam Due Commune, Cam Xuyen District, Ha Tinh Province), after 37 years of work, only received a pension of 1.3 million VND/month, which has attracted much public attention.

It was thought that this was the most "miserable" pension level, but Vietnam Social Security confirmed that it was not the lowest pension level.

1.3 million dong... still high!

According to Ms. Dinh Thu Hien, Deputy Head of the Social Insurance Policy Implementation Department (Vietnam Social Insurance), currently there are 3,228 people nationwide receiving pensions of less than 1.3 million VND/month and the group receiving pensions lower than the basic salary is not only preschool teachers.

The lowest contribution level for voluntary social insurance participants is equal to the basic salary; according to the provisions of the Social Insurance Law 2014, from January 1, 2016, the lowest pension level for this group will be equal to the poverty line in rural areas, which is about 700,000 VND/month.

"For example, currently, non-professional ward, commune and town cadres have a social insurance contribution rate only above the basic salary and if the social insurance contribution period is only 20 years, their benefit rate is 55%. In the coming time, when the new social insurance policy is applied, their pension rate will only fluctuate from 55% - 60%, so their pension benefit will certainly be low and in fact is already low" - Ms. Hien said.

In addition, the voluntary social insurance participants also have the lowest contribution level equal to the basic salary. Meanwhile, according to the provisions of the Social Insurance Law 2014, from January 1, 2016, the pension level of this group will be at least equal to the poverty line in rural areas, which is about 700,000 VND/month.

This is also their actual pension level because according to regulations, voluntary social insurance participants and non-professional commune, ward and town officials are not eligible for compensation equal to the basic salary level like preschool teachers.

Disadvantaged for being born in December

Not only disappointed with low pension levels, the regulations on conditions for early retirement due to reduced working capacity of the 2014 Social Insurance Law also met with reactions from workers.

Recently, Mr. Huynh Ngoc Chien, residing in Go Vap District, Ho Chi Minh City, was quite upset. According to Mr. Chien, he was born on December 12, 1965, participated in social insurance for 33 years, of which 25 years were spent doing hard, toxic, dangerous work and is currently retired.

Recently, after receiving the assessment results showing a 64% reduction in working capacity, he went to the Go Vap District Social Insurance to apply for early retirement and was told that because he was born in December, he would have to wait another 3 years to meet the age requirements for early retirement.

"I really can't understand why people born in the same year but different months as me can retire, but I have to wait 3 years. I have reduced ability to work, currently have no job, no income, so how can I live during those 3 years of waiting?" - Mr. Chien said with indignation.

According to the explanation of Go Vap District Social Insurance, Mr. Chien was born on December 12, 1965, at the age of 52, and will be eligible for retirement on December 12, 2017. However, according to the provisions of Circular 59/2015/TT-BLDTBXH, the time to meet the age requirement for pension is the 1st day of the month following the month of birth, which is January 1, 2018.

However, when entering 2018, according to the provisions of Article 55 of the Social Insurance Law, Mr. Chien must be 53 years old to retire (ie December 12, 2018) and because the law changes, increasing the retirement age conditions every year, he must not retire until 2020 when he is 55 years old.

Ms. Nguyen Thi Thu, Deputy Director of Ho Chi Minh City Social Insurance, said that there have been many similar cases to Mr. Chien after the 2014 Social Insurance Law took effect. After that, the Ministry of Labor, War Invalids and Social Affairs issued a document directing the calculation of retirement time for cases born in December of the year. However, the document only applies to those born in December whose retirement date falls on January 1, 2017 and there is no new direction for the present time.

According to VNN