When you retire in 2023, how much pension will you receive when you pay full 24 years of social insurance?
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.
Accordingly, in Article 56 of the Law on Social Insurance 2014, from January 1, 2018, the monthly pension of qualified employees is calculated at 45% of the average monthly income on which social insurance premiums are based. Social insurance) and corresponding to the number of years of paying social insurance 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 is equal to 75% of the monthly salary on which social insurance premiums are based.
Thus, male employees who are eligible to retire in 2023 and fully pay 24 years of social insurance will enjoy a pension equal to 53% of the monthly salary on which social insurance is based.
The pension of female employees who are eligible for retirement in 2023 is calculated as follows:
– Having paid full 15 years of social insurance, they will receive 45% of the monthly salary on which social insurance premiums are based.
– After that, for each additional year of payment of social insurance, an additional 2% will be calculated.
Therefore, female employees who are eligible to retire in 2023 and fully pay 25 years of social insurance will receive a pension at the rate of 63% of the monthly salary on which social insurance premiums are based.
Who retires to receive the maximum pension?
From 2022 onwards, the minimum number of years of paying social insurance premiums to enjoy pension will not change anymore. Female employees need to pay at least 15 years and male employees need to pay at least 20 years.
How to calculate the number of years of social insurance payment to retire with maximum salary:
Number of years of paying social insurance premiums to receive maximum salary = (Number of years of paying social insurance contributions to receive 45% of salary, based on years of retirement) + 15
Thus, male employees who have fully paid 35 years of social insurance and are eligible to retire in 2022 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. As for female employees, who have paid full 30 years of social insurance and are eligible to retire from 2022, they will receive the maximum pension.
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
