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Official Gazette

Monday, December 10, 2018

Retirement age may go up due to trade deals

Updated: 16:01’ - 20/11/2018
The retirement age for male and female workers could increase from 60 and 55 at present to 62 and 60 respectively from 2021, according to the Ministry of Labor, Invalids and Social Affairs (MOLISA).

At a meeting on November 19 to discuss new-generation free trade agreements (FTAs) co-hosted by MOLISA and the International Labor Organization, Nguyen Van Binh, deputy head of the ministry’s Department of Legislation, said some contents in Vietnam’s Labor Code would be adjusted to fit the provisions of new generation FTAs.

These regulations touch upon the difference between the retirement ages of men and women, disability employment and occupations in which female employment is prohibited.

According to the current law, female workers can retire five years before their male peers.

The retirement age for male and female workers could increase from 60 and 55 at present to 62 and 60 respectively from 2021, according to the Ministry of Labor, Invalids and Social Affairs__Photo: kiemsat.vn

Binh said applying the new retirement ages immediately could cause problems for people who were preparing for retirement.

Under one plan, the retirement age would add six months at a time until it reached the targets set by the Government.
For instance, if a man retires in 2020, the retirement age would be 60. However, if he retires in 2021, the retirement age would be 60 years and six months.  If he retires in 2022, the retirement age would be 61 and so on.

The change is aimed at balancing the pension fund and the benefit fund for people with disabilities.

These funds were forecast to run dry if the current retirement age was kept unchanged.

“Regulations in the Labor Code draft revision also focus on protecting female workers during maternity leave,” Binh said.

The draft revision is set to be presented to the National Assembly in May 2019 and be submitted for approval in October 2019.  

New generation FTAs include non-trade provisions related to labor, the environment, sustainable development commitment and good management.

The FTAs include the Vietnam-European Free Trade Agreement (Vietnam-EU FTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Vietnam officially became the seventh member of the CPTPP on November 12.

Nguyen Van Giau, the NA’s external relations committee chairman, said that by approving the agreement, Vietnam had shown willing and ability to integrate with the international community, respond to the developments of the global economy, and progress with other free trade agreements.

The CPTPP agreement was signed by Vietnam and ten other economies in the Asia-Pacific region last March in Chile after the US withdrew from the Trans-Pacific Partnership in 2017.

Up to 98 percent of tariff lines will be lifted when the CPTPP comes into force.- (VNS/VLLF)
 

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