Retirement ages go up in 2024

Under the Labor Code, any employees can retire after participating in social insurance for 20 years.

Laborers can retire up to five-10 years earlier than the said-above ages based on certain conditions like working in a dangerous environment or extremely disadvantaged areas.

Earlier, under the Labor Code 2019, Viet Nam has increased the retirement age from January 1, 2022. Retirement age shall increase by three months for males and four months for females after every year. The retirement age will be further adjusted until it reaches 62 for men and 60 for women in 2028 and 60 for females in 2035.

The maximum pension rate in Viet Nam is 75 percent, which is higher than the global counterpart of 50 percent.

Despite the high pension rate, the average amount of monthly pension per capita in Viet Nam is only around VND5.4 million (US$227.87) due to the low amount of compulsory social insurance payment, which is on average only VND5.73 million a month, 22-77 percent higher than the minimum wage.

The person with the highest pension in Viet Nam received over VND124 million (US$5,200) per month, according to the Viet Nam Social Security (VSS).

The Ministry of Labor, Invalids and Social Affairs reported that while social insurance payments have increased based on growing monthly salaries, the increase has not been sufficient.

A major problem, according to the ministry, is that businesses have shifted around allowances and benefits programs in order to avoid having to pay for workers’ social insurance.

Documents for the amendments to the Law on Social Insurance are expected to be presented before the National Assembly in October, passed in May 2024 and go into effect starting 2025./.