If the employee retires before the age in 2020, the pension the employee receives will be equal to the average monthly salary on which social insurance premiums are based and corresponding to the number of years of payment of social insurance.

Conditions for early retirement

Pursuant to Article 54 of the Law on Social Insurance 2014, an employee is entitled to a pension when he is full 60 years old for men, 55 years old for women and has had full 20 years of paying social insurance premiums. However, in some specific cases, employees can still be “retired” earlier.

In Article 55 of this Law, if an employee has full 20 years of paying social insurance premiums, he/she will be entitled to early retirement if he/she falls into the following categories:

• Having a working capacity decrease of 61% or more, full 55 years old for men and full 50 years old for women;
• Having a decrease in working capacity of 81% or more and being full 50 years old for men and 45 years old for women;
• Having a decrease in occupational capacity of 61% or more and having 15 years or more of working in particularly heavy, hazardous or dangerous occupations or jobs on the List promulgated by the Ministry of Labour, Invalids and Social Affairs and the Ministry of Health.

As for the armed forces (officers, non-commissioned officers, military, police), this group of employees will be retired when they have had full 20 years of paying social insurance contributions, and at the same time have their working capacity reduced from 61%. or more and in one of the following cases:

• Men from full 50 years old, women from full 45 years old;
• Having completed 15 years or more of working in particularly heavy, dangerous and hazardous occupations or jobs on the List promulgated by the Ministry of Labour, Invalids and Social Affairs and the Ministry of Health.

Thus, when wanting to retire before the age in 2020, all employees must ensure full 20 years of social insurance contributions and fall into the case of a working capacity decrease of 61% or more.

The rate of calculating pension before the age of 2020

According to Clause 2, Article 56 of the Law on Social Insurance 2014, if they retire in 2020, the monthly pension of an employee is calculated at 45% of the average monthly salary on which social insurance premiums are based and corresponds to the number of years of payment of social insurance premiums (in which, employees male employees are counted as 18 years and female employees are counted as 15 years). After that, an extra year will be charged 2% up to a maximum of 75%.

In case of early retirement, for each year of pre-retirement age, 2% decrease. If the retirement age has an odd period of up to 6 months, the reduction is 1%, and if the retirement age is over 6 months, the percentage will not be reduced due to early retirement.

For example:  As of 2020, Mr. A is 55 years old and has 32 years of social insurance contributions, and is eligible for early retirement as prescribed. Mr. A’s pension if he retires in 2020 is calculated as follows:

18 years of paying social insurance = 45%; The remaining 14 years = 14 x 2% = 28%. If he retires at the right age, Mr. A will receive 73% of the average salary for social insurance contributions.

However, Mr. A retires before the age of 5 years, so it will be reduced by 5 x 2% = 10%. So Mr. A’s actual pension is calculated as 73% – 10% = 63% of the average monthly salary on which social insurance premiums are based.

According to the Workers