# How to calculate social insurance pension in 2023

How to calculate pension in 2023, how to calculate voluntary social insurance pension in 2023 will be presented in this article of Viindoo.

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## 1. How to calculate monthly pension

According to Article 7 of Decree 115/2015/ND-CP, the monthly pension of employees participating in compulsory social insurance in 2023 will be calculated as follows:

Monthly pension = Percentage (%) enjoying monthly pension x Average monthly salary for social insurance contributions

In there:

• For men, the monthly pension will be calculated at the rate of 45% of the average monthly salary on which social insurance premiums are based, corresponding to 20 years of paying social insurance premiums, then an additional 2% each year of payment, up to a maximum of 75 years. %
• For women, the monthly pension will be calculated at the rate of 45% of the average monthly salary on which social insurance premiums are based, corresponding to 15 years of paying social insurance premiums, then an additional 2% each year of payment, up to a maximum of 2 percent. 75%.
• Female employees working full-time or part-time in communes, wards and townships eligible for pension will be calculated according to the number of years of payment of social insurance and the average monthly salary on which social insurance premiums are based.

For those who retire before the stipulated age, the monthly pension will be calculated as the full retirement age. However, each year of retirement before the statutory age will reduce 2%. The average monthly salary on which social insurance premiums are based to calculate the pension is specified in Article 9 of Decree 115/2015/ND-CP.

How to calculate monthly pension

## 2. Calculation of voluntary social insurance pension in 2023

To calculate the monthly pension for participants of voluntary social insurance, we use the following formula:

Monthly pension rate = Percentage (%) enjoying monthly pension X Average monthly income on which social insurance premiums are based.

Specifically, to calculate the percentage (%) of monthly pension, we apply the following provisions:

• With labor male: If paying the full 20 years of social insurance, that person will be entitled to 45% of the monthly pension. After that, each additional year will be charged an additional 2%, with a maximum of 75%.
• For female employees: If paying the full 15 years of social insurance, that person will receive 45% of the monthly pension. After that, each additional year will be charged an additional 2%, with a maximum of 75%.

Note that the average monthly income on which social insurance premiums are based is calculated as the average monthly income for which social insurance premiums are based for the entire period of payment.

How to calculate a voluntary social insurance pension?

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## 3. Conditions for pension enjoyment

### 3.1 For employees participating in compulsory social insurance

Conditions for employees to participate in compulsory social insurance are as follows:

Case 1:

• If the employee quits his job and has fully paid social insurance for at least 20 years
• Men need to be 60 years old and 6 months old and women need to be 55 years and 8 months old.

Case 2:

• If the employee quits his job and has paid social insurance in full for at least 20 years, and at the same time has full 15 years of working in an environment with difficult conditions such as arduous or hazardous work or working in an area with poor conditions. socio-economic difficulties
• Men need to be 55 years old and 6 months old and women need to be 50 years and 8 months old to enjoy their pension.
Conditions for enjoying pension for employees participating in compulsory social insurance

### 3.2 For participants of voluntary social insurance

Conditions for participants of voluntary social insurance are as follows:

Vietnamese citizens aged full 15 years or older and not required to participate in social insurance can also voluntarily participate to enjoy retirement and survivorship benefits.

Participants of voluntary social insurance are entitled to pension when meeting the following conditions:

• Full 55 years and 8 months for women and full 60 years and 6 months for men.
• Have paid social insurance contributions for at least 20 years

## 4. Should I receive a pension or receive a one-time social insurance allowance?

In general, a pension or a lump-sum social insurance allowance has its own advantages and disadvantages. Specifically:

 Compare Pension 1 time social insurance allowance​ Advantages - Pensions are enjoyed for many years in a row.- The pension is calculated based on the average salary of the employee during the period of payment of social insurance. - Can be paid quickly and easily.- The grant is received only once.- The one-time social insurance allowance is calculated based on the number of years of payment of social insurance and salary, so the amount to be enjoyed will be relatively high. Disadvantages - The pension received is usually very lowThe pension received is usually very low.- If employees retire early, they may not be of age or years of social insurance contributions to fully enjoy their pension.- If the employee dies before reaching retirement age or the full number of years of payment of social insurance contributions, the beneficiary cannot receive the pension. - The amount of one-time social insurance allowance is usually not calculated based on the employee's contribution level, but is determined by the law.- The lump-sum social insurance payment is usually lower than the pension.- When deciding to enjoy one-time social insurance, employees agree to give up basic benefits such as free Health Insurance card, survivorship allowance and funeral allowance.

Thus, employees should carefully consider two decisions: Enjoying a pension or receiving a lump-sum social insurance allowance to ensure life in old age.

In this article, Viindoo fully presented about how to calculate pension and factors affecting the pension level of each person. The calculation of pension is extremely important for those who want to have the best financial preparation for their old age. If you need more information or have any questions related to this topic, please contact Viindoo for more specific advice!

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Jun Nguyen March 23, 2023