The retirement age in Vietnam, currently 60 for men and 55 for women, may be gradually raised to 62 and 60, respectively, according to a proposal of the Ministry of Labor, War Invalids and Social Affairs.
Under the second draft of the revised Labor Code, starting from 2021, the current retirement age will be raised by six months every year till it reaches 62 for men and 60 for women. The other option is to retain the current retirement age.
The retirement age in Vietnam may be raised to 62 and 60 for men and women, respectively__Photo: Internet
People with limited working capacity or doing hard, hazardous or dangerous work may retire earlier while those with professional qualifications and management skills may retire at an older age, which, however, must not be more than five years longer than the proposed age, according to the draft.
The proposal, which is open for public comment from April 21 through June 21, aims to deal with the rapidly aging population and imbalance of the pension fund. The average life expectancy in Vietnam is now 73, meaning a retiree may enjoy pension for nearly 20 years at a relatively high rate of 75% of his salary.
Vietnam is expected to have approximately 10 million elderly by 2050. If the current retirement age remains unchanged, by 2020 the revenues and expenditures of the social insurance fund will equal and the fund must be offset with state budget funds from 2037.- (VLLF)