3 formulas and 4 important pension milestones applied from 2022 onwards that workers need to know
Article 54 of the Law on Social Insurance 2014 as amended by Point a, Clause 1, Article 219 of the 2019 Labor Code stipulates that employees of full age and having paid social insurance premiums for full 20 years or more are entitled to a pension.
In Article 56 of the Law on Social Insurance 2014, from January 1, 2018, the monthly pension of eligible employees is calculated at 45% of the average monthly income on which social insurance premiums are paid and corresponding to the number of years of paying social insurance premiums as follows:
a) Male employees will retire for 16 years in 2018; 17 years in 2019; 18 years in 2020; 19 years in 2021; 20 years from 2022 onward;
b) Female employees who retire from 2018 onwards is 15 years.
After that, for each additional year, the employees specified at Points a and b of this Clause shall be charged an additional 2%; the maximum rate equal to 75% of the monthly salary on which social insurance premiums are based.
Thus, from 2022 onwards, the minimum number of years of paying social insurance premiums to enjoy pension will not change anymore. Female workers need to pay minimum 15 years social insurance and male workers need to pay minimum 20 years of social insurance to receive a pension.
The formula for calculating pension for employees will also be fixed as follows:
1) How to calculate pension according to the number of years of payment of social insurance:
Monthly pension level = Percentage (%) enjoying monthly pension x Average monthly income for social insurance payment
2) How to calculate the percentage (%) enjoying monthly pension for female employees:
Percentage (%) enjoying monthly pension = 45% + (Number of years of paying social insurance premium – 15) x2%
3) How to calculate percentage (%) of monthly pension for male employees:
Percentage (%) enjoying monthly pension = 45% + (Number of years of paying social insurance premiums – 20) x2%
At the same time, from 2022 onwards, the number of years of paying social insurance premiums to enjoy the maximum pension will also remain unchanged.
From 2022, male workers will pay in full 35 years of social insuranceeligible for retirement and fully paid female employees 30 years of social insuranceeligible for retirement will receive a pension at the rate of 75% of the monthly salary on which social insurance premiums are based, this is the maximum rate.
In case the employee participates in compulsory social insurance, but retires before the age due to a decrease in working capacity, the pension enjoyment rate will be deducted, in principle, the pension enjoyment rate is calculated as above with a maximum rate of 75 %; then, for each year of retirement before the prescribed age, the reduction is 2%. Therefore, the cases where the pension rate is deducted will not be entitled to the maximum pension.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
