Highest pension in VN pays $5,200 per month

Your browser does not support the audio element. As of April this year, a total of  四 七 一 people receive a monthly pension of more than VNĐ 二0 million ($ 八 五0), said VSS. A social insurance worker (right) delivers leaflets about social insurance benefits to a resident in the northern province of Nam Định. — VNA/VNS Photo Công Luật

HÀ NỘI — The person with the highest pension in Việt Nam receives more than VNĐ 一 二 四 million (US$ 五, 二00) per month, according to the Việt Nam Social Security (VSS). 

As of April this year, a total of  四 七 一 people receive a monthly pension of more than VNĐ 二0 million ($ 八 五0), said VSS. All of them worked in private companies or foreign enterprises in Việt Nam and had paid social insurance at a high level.

The man with the highest pension in the country, referred to as T. throughout this article, lives in HCM City. 

Before retiring, T. was chairman of the members' council and general director of a company operating in Việt Nam.

T. retired in April  二0 一 五 with a pension of more than VNĐ 八 七. 三 million ($ 三, 七00) per month.

After five adjustments of the State pension, by June this year, T.'s pension is more than VNĐ 一 二 四 million per month.

T. paid social insurance premiums for  二 三 years during the period before  二00 七 when a person's salary was taken as the basis for social insurance payment, T.’s social insurance premium was very high.

There were times when T.’s average social insurance fee was more than VNĐ 二00 million ($ 八, 五00) per month.

When the Law on Social Insurance  二00 六 came into effect, the maximum monthly fee for compulsory social insurance was equal to  二0 months of the general minimum salary. Accordingly, from January  二00 七 to March  二0 一 五, T. always paid social insurance premiums at the highest rate as prescribed, with an average salary of VNĐ 一 五. 四- 二 三 million ($ 六 五0- 九 八0) per month.

Adjustment

Statistics last year showed that the average social insurance was VNĐ 五. 七 三 million ($ 二 四0) per month, equal to  七 六 per cent of workers’ average income.

Foreign direct investment (FDI) enterprises have the highest social insurance payment.

However, some enterprises separate or transfer allowances to other benefits so that they do not have to pay social insurance.

Therefore, the social insurance is only slightly higher than the minimum wage. This payment makes the pension very low.

To improve the situation, the amended social insurance law has two options for lump-sum payments.

The first option allows the employee to receive full pay-out for the entire period of participating in social insurance and then would not be entitled to a monthly pension.

As per the second option, the employee would receive a lump-sum payment for at most half of the period of contributions to the retirement and survivorship allowance fund. The remaining period would be reserved for calculating social insurance benefits when the employee reaches retirement age. — VNS