If the basic salary increases, how much will the lowest pension increase?

According to Article 56 of the Law on Social Insurance 2014, the monthly pension level is stipulated as follows:

- The monthly pension of employees who meet the conditions specified in Article 54 of the Law on Social Insurance 2014 is calculated at 45% of the average monthly salary for social insurance contributions specified in Article 62 of the Law on Social Insurance 2014 and corresponds to the number of years of social insurance contributions as follows:

+ Male workers retiring in 2018 will be 16 years, in 2019 will be 17 years, in 2020 will be 18 years, in 2021 will be 19 years, from 2022 onwards will be 20 years;

+ Female workers retiring from 2018 onwards is 15 years.

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Then, for each additional year, employees specified in Point a and Point b, Clause 2, Article 56 of the Law on Social Insurance 2014 will be calculated an additional 2%; the maximum level is 75%.

- The monthly pension of employees who meet the conditions specified in Article 55 of the Law on Social Insurance 2014 is calculated as prescribed in Clause 1 and Clause 2, Article 56 of the Law on Social Insurance 2014, then for each year of retirement before the prescribed age, it is reduced by 2%.
In case the retirement age has an odd time up to 06 months, the reduction is 1%, from more than 06 months, the percentage is not reduced due to early retirement.

- The monthly pension of female employees eligible for pension as prescribed in Clause 3, Article 54 of the Law on Social Insurance 2014 is calculated based on the number of years of social insurance contributions and the average monthly salary for social insurance contributions as follows: 15 years of social insurance contributions is calculated at 45% of the average monthly salary for social insurance contributions as prescribed in Article 62 of the Law on Social Insurance 2014. From 16 years to less than 20 years of social insurance contributions, each year of contribution is calculated by adding 2%.

- The lowest monthly pension of employees participating in compulsory social insurance who are eligible for pension according to the provisions of Articles 54 and 55 of the Law on Social Insurance 2014 is equal to the basic salary, except for the cases specified in Point i, Clause 1, Article 2 and Clause 3, Article 54 of the Law on Social Insurance 2014.

Therefore, when the basic salary increases, the lowest monthly pension will increase from 1.49 million VND/month to 1.8 million VND/month.

According to Laborer