Question: I am an employee who has been subject to the implementation of the wage regime stipulated by the State and subscribed to social insurance since June 2007 until now. If I continue to pay social insurance until retirement in the future, i.e., the entire pay period is stipulated by the State, how is the average monthly pay for my pension calculated?
The Law Department - ACDC advises:
Under Clause 1, Article 62 of the Law on Social Insurance in 2014 and Clause 1, Article 9 of Decree 115/2015/ND-CP guiding the Law on Social Insurance on compulsory social insurance stipulating the average monthly salary pay social insurance premiums to calculate a one-time pension or allowance, whereby, employees subject to the salary regime prescribed by the State have the entire period of paying social insurance premiums according to the salary regime. In this case, the average monthly salary for the number of years of paying social insurance premiums before retirement is as follows:
(1) Starting to participate in social insurance before January 1, 1995, the average monthly salary on which social insurance premiums are based on the last 5 years before retirement;
(2) Starting to participate in social insurance in the period from January 1, 1995, to December 31, 2000, the average monthly salary on which social insurance premiums are based for the last 6 years before retirement ;
(3) Starting to participate in social insurance in the period from January 1, 2001, to December 31, 2006, the average monthly salary on which social insurance premiums are based for the last 8 years before retirement;
(4) Starting to participate in social insurance during the period from January 1, 2007, to December 31, 2015, the average monthly salary on which social insurance premiums are based for the last 10 years before retirement;
(5) Starting to participate in social insurance from January 1, 2016, to December 31, 2019, the average monthly salary on which social insurance premiums are based for the last 15 years before retirement;
(6) Starting to participate in social insurance from January 1, 2020, to December 31, 2024, the average monthly salary on which social insurance premiums are based for the last 20 years before retirement;
(7) Starting to participate in social insurance from January 1, 2025, onwards, the average of monthly salary on which social insurance premiums are based for the entire period.
Thus, in your case, when you start participating in social insurance in June 2007, if you retire, your entire period of participation in social insurance will be paid according to the monetary regime. If the salary is regulated by the State, the average monthly salary on which social insurance premiums are based to calculate the pension in your case is the average monthly salary on which social insurance premiums are based for the last 10 years before retirement.
