1. Foreign employees eligible for pension in Vietnam
According to Clause 1, Article 2, Clause 1, Article 9 Decree 143/2018/ND-CP, foreign employee who are entitled to pension when working in Vietnam includes:
Foreign citizens working in Vietnam;
Subject to participation in compulsory social insurance when having a work permit or a practicing certificate or a practicing license issued by a competent authority of Vietnam;
Having an indefinite-term labor contract or a definite-term labor contract of full 01 year or more with an employer in Vietnam.
2. Conditions for foreign employees in Vietnam to be eligible for pensions
According to Point a, Clause 1, Article 219 Labour Code 2019, which amends and supplements Clause 1, Article 54 Law on Social Insurance 2014, foreign employees in Vietnam who have retired after 20 years of paying social insurance or more are entitled to a pension if they fall into one of the following cases:
a. Full age as prescribed in Clause 2, Article 169 Labour Code;
b. Being of age as prescribed in Clause 3, Article 169Labor Code, and at the same time:
Having had full 15 years of working in heavy, hazardous or dangerous occupations or jobs or particularly heavy, hazardous or dangerous jobs on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs; or
Having full 15 years of working in an area with extremely difficult socio-economic conditions, including working time in a place with a regional allowance coefficient of 0.7 or more before January 1, 2021;
c. Employees who are at most 10 years younger than the retirement age prescribed in Clause 2, Article 169 of the Labor Code and have worked in underground coal mines for a minimum of 15 years;
d. Employees infected with HIV/AIDS as a result of occupational accidents while performing assigned responsibilities.
3. Pension rate for foreign employees working in Vietnam
The pensions for foreign employees working in Vietnam are prescribed in Clause 2, Article 9 of Decree 143/2018/ND-CP as follows:
3.1 Monthly pension rate
The monthly pension rate shall comply with Clause 2, Article 56 Law on Social Insurance and Clauses 1 and 2, Article 7 Decree 115/2015/ND-CP, specifically:
+The monthly pension of an employee who fully meets the conditions specified in Article 54 of the Law on Social Insurance is calculated at 45% on average monthly salary on which social insurance premiums are based and corresponds to the number of years of social insurance payment as follows:
For male employees, the number of years they have contributed social insurance is 20;
For female employees, the number of years they have contributed social insurance is 15;
+ The pension of foreign employees will be computed + 2% for each extra year, up to a maximum of 75%.
3.2 Lump-sum allowance in retirement
The lump-sum allowance in retirement comply with the provisions of Article 58 Law on social insurance, specifically:
Employees who have paid social insurance contributions for a period longer than the number of years equivalent to the pension allowance rate of 75% will be eligible to a lump-sum allowance when they retire, in addition to their pensions.
The lump-sum allowance determined based on the number of years of paying social insurance contributions is more than the number of years equivalent to the 75 % pension enjoyment rate. It is computed as 0.5 months of the average monthly salary on which social insurance payments.
3.3 Average monthly wage used to compute pensions for foreign employees in Vietnam based on social insurance contributions
The average monthly salary used to compute social insurance premiums for pensions and lump-sum allowances must comply with the provisions of Clause 2, Article 62 of the Law on Social Insurance.
- Law on social insurance;
Labor Code 2019.