Vietnam is revamping its social security and pension system by raising the retirement age and reducing eligibility requirements to receive monthly pension.
The Southeast Asian nation will increase the retirement age for men to 62 years by 2028 from the current 60 years. For women, the retirement age will be increased to 60 years by 2035 from 55 years now.
The Vietnam Social Security Office announced the changes in a statement posted on its website on February 6.
Effective July 1 this year, employees who have made social security contributions for 15 years will receive monthly pension when they retire. That’s down from the current requirement to contribute for 20 years in order to receive pension.
Contribution rates remain unchanged at 8% of wages for employees and 17.5% for employers.
Meanwhile, the government will, also effective July 1, pay 500,000 dong (US$19.75) of monthly social pension to Vietnamese older than 70 years who do not already receive a pension. At present, this is only paid to the poor who are older than 80 years.
“The amount will be periodically reviewed and adjusted every three years based on the country’s economic conditions and budget,” the statement says.
