Mr. Hoang Minh (Da Nang City) has continuously worked in an extremely heavy, hazardous profession, eligible for retirement when he is 55 years old, but he plans until 2020 (full 60 years old) he will retire. Mr. Minh asked, how about the benefits calculated for the 5 years exceeding the regulations when he retires?

The lump-sum allowance level is calculated based on the number of years of social insurance premium payment over the number of years corresponding to the 75% pension rate

The Social Insurance Department of Da Nang City responded to this problem as follows:

Article 54 of the Law on Social Insurance No. 58/2014/QH13 stipulates the conditions for pension enjoyment as follows:

1. Employees specified at Points a, b, c, d, g, h and i, Clause 1, Article 2 of this Law, except those specified in Clause 3 of this Article, who have paid social insurance premiums for at least full 20 years are entitled to pension when falling in one of the following cases:

a/ Being full 60 years old, for men, or full 55 years old, for women;

b/ Being between full 55 years and full 60 years old, for men, or between full 50 years and full 55 years old, for women, and having full 15 years doing heavy, hazardous, or dangerous occupations or jobs or extremely heavy, hazardous, or dangerous occupations or jobs on the list jointly issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health, or having full 15 years working in areas with a region-based allowance coefficient of 0.7 or higher;

c/ Employees who are between full 50 years and full 55 years old and have paid social insurance premiums for at least full 20 years, including full 15 years spent in coal mines;

d/ Employees who are infected with HIV/AIDS due to occupational risks.

2. Employees specified at Points dd and e, Clause 1, Article 2 of this Law, who cease working after having paid social insurance premiums for at least full 20 years, are entitled to pension when falling in one of the following cases:

a/ Being full 55 years old, for men, or full 50 years old, for women, unless otherwise provided by the Law on Officers of the Vietnam People’s Army, the Law on People’s Public Security or the Law on Cipher;

b/ Being between full 50 years and full 55 years old, for men, or between full 45 years and full 50 years old, for women, and having full 15 years doing heavy, hazardous, or dangerous occupations or jobs or extremely heavy, hazardous, or dangerous occupations or jobs on the list jointly issued by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health, or having full 15 years working in areas with a region-based allowance coefficient of 0.7 or higher;

c/ Employees who are infected with HIV/AIDS due to occupational risks.

3. Female employees who are full-time or part-time staffs in communes, wards or townships, and cease working after having paid social insurance premiums for between full 15 years and under 20 years, and are full 55 years old, are entitled to pension.

4. The Government shall stipulate the conditions on retirement ages for pension enjoyment in special cases; and the conditions for pension enjoyment for the subjects specified at Points c and d, Clause 1, and Point c, Clause 2, of this Article.

Being a male employee, if he has had full 15 years doing heavy, hazardous, or dangerous occupations or jobs or extremely heavy, hazardous, or dangerous occupations or jobs on the list jointly issued by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health, or having full 15 years working in areas with a region-based allowance coefficient of 0.7 or higher; and is full 55 years old, he is eligible for pension enjoyment.

If he retires in 2020, the monthly pension according to the provisions of Article 56 of the Law on Social Insurance is equal to 45% of the average monthly salary on which social insurance premiums are based specified in Article 62 of this Law, corresponding to 18 years of social insurance premium payment, then it shall be added with 2%; and not exceed 75% (the period of social insurance premium payment corresponding to the 75% pension rate is 33 years).

If he has the period of social insurance premium payment exceeding the number of years corresponding to the 75% pension rate, when he retires, he will also enjoy a lump-sum allowance in addition to his pension. The lump-sum allowance upon retirement is specified in Article 58 of the Law on Social Insurance as follows:

1. Employees who have paid social insurance premiums for a period exceeding the number of years corresponding to the 75% pension rate are entitled to not only pension but also a lump-sum allowance upon retirement.

2. The lump-sum allowance level shall be calculated based on the number of years of social insurance premium payment over the number of years corresponding to the 75% pension rate, with half of the average monthly salary on which social insurance premiums are based for each of these years.