Thursday,  Oct 18, 2018,00:50 (GMT+7) 0 0
New pension rule puts female workers at disadvantage
The Saigon Times Daily
Thursday,  Jan 4, 2018,23:22 (GMT+7)

New pension rule puts female workers at disadvantage

The Saigon Times Daily

HCMC – Many workers, especially females, have complained about the new pension calculation method applicable from January 1, 2018, saying it puts them at a disadvantage, Tien Phong newspaper reports.

According to the 2014 Law on Social Insurance, from January 1 this year, workers will have to contribute social insurance for five more years, meaning 30 years for women and 35 years for men, to enjoy the highest pension rate of 75%.

However, the law stipulates an annual increase in the period of social insurance contribution until 2022 to be eligible for the maximum pension for men only, which is unfair to women.

Nguyen Thi Hong, a teacher at Nguyen Du Secondary School in Hanoi, will get a pension equaling to 65% of her average monthly salary as she retires after December 31, 2017.

Ho Thi An, chairwoman of the labor union of Nguyen Du School, said the new regulation puts female workers at a disadvantage as their pensions would drop.

According to Vietnam Social Security (VSS), some 2,000 retired females will be subject to pensions which are 8-10% lower than previously.

VSS deputy general director Pham Luong Son said social insurance agencies should propose suitable pension calculations to ensure fairness between male and female workers. Particularly, the annual increase in the period of social insurance contribution should be applied to women as well.

The National Assembly has not decided if the schedule to change pension calculations this year would be amended or not despite many proposals. Therefore, retired female employees will receive pensions which are 5% to 10% lower than previously, Son said.

The Ministry of Labor, Invalids and Social Affairs earlier submitted two solutions for calculating pensions for female workers from 2018. For the first one, when hiking basic salaries and pensions by 7%, a larger increase should apply to workers with lower pensions. Particularly, workers with pensions of VND80 million or higher a month will enjoy a hike of 4-5% from July 1 while the rate may be higher than 7% for workers receiving pensions of less than VND2 million.

The ministry also proposed increasing gradually the social insurance contribution period for females.

The Vietnam General Confederation of Labor also wrote to the National Assembly suggesting suspending the implementation of the above-mentioned regulation.

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