The normal pension age was 60 years 6 months for men and 55 years 8 months for women in 2022, with a minimum of 20 years of contributions. From 1 January 2021 the retirement age has been increasing by 3 months per year for men, reaching 62 in 2028 and 4 months per year for women, reaching 60 in 2035.

A lump sum payment is made for people with shorter contribution periods.

Earnings-related

45% of the insured’s average monthly covered earnings is paid for the first 20 years (men) or 15 years (women) of contributions plus 2% of the insured’s average monthly covered earnings for each year of contributions exceeding 20 years (men) or 15 years (women). The maximum accrual is 75%.

Old-age grant

If total contributions are less than 20 years, retirees receive a lump sum is paid of 1.5 times the insured’s covered average monthly earnings in the last five years for years of contributions before 2014, plus 2 times the insured’s covered average monthly earnings in the last five years for contributions since 2014.

Old-age social assistance

The minimum social pension is VND 360 000. A multiplier is applied to this minimum level: (i) 15 for those aged 60 to 79 who are living in poor households without family members, or with support from family members who are also receiving social assistance benefits; (ii) 2 for those aged 80 and over who are living in poor households without family members, or with support from family members who are also receiving social assistance benefits; and 1 for those aged 80 and over who do not have any social insurance and assistance benefits; and (iii) 3 for any older people who are living in poor households without family members but receiving support from community.

Early retirement

It is possible to retire and to start claiming the pension at age 55 for men and 50 for women under specific requirements. The pension is reduced by 2% of the insured’s covered average monthly earnings for each year the pension is taken before the insured’s normal pensionable age due to reduced working capacity.

Late retirement

It is not possible to start claiming a pension after the normal pension age. It is possible, however, to combine working and receiving pension.

Taxation of workers

There is a personal allowance of VND 9 million per month.

Taxation of worker’s income

Tax rates applicable to regular annual income are as follows:

Social security contributions payable by workers

Employees pay 8% of monthly salary/wage for retirement benefits. The minimum and maximum monthly earnings for contribution and benefit calculation purposes are the minimum wage and 20 times of the minimum wage, respectively. From 1 July 2022 onwards they will be VND 3 000 000 and VND 60 000 000, respectively. In addition, employees pay 1.5% health contributions with the same ceiling as for pension contributions and 1.0% for unemployment insurance with a ceiling of 20 times the regional minimum wage – for analysis Region I is being used with a monthly minimum wage of VND 4 680 000.

Taxation of pensioners

There is no additional tax relief for pensioners.

Taxation of pension income

The same taxation rule is applied to pension benefits.

Social security contributions payable by pensioners

Pensioners do not pay any social security contribution.