Labor Minister Dao Ngoc Dung says necessary to revise up retirement age

The proposal to raise the retirement age is necessary as Vietnam’s retirement age regulations have been outdated after 60 years, and the average life expectancy of the Vietnamese is higher than that of people from many Asia-Pacific countries.

Labor Minister Dao Ngoc Dung says necessary to revise up retirement age
Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung answers questions from the press on the retirement age increase proposal - PHOTO: PLO

On the sidelines of a discussion today, May 29, on the draft amending the Labor Law, including a retirement age increase proposal, as part of the National Assembly’s (NA’s) seventh sitting, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung said that 60 years ago, the Vietnamese people’s average life span was only 45 years, but it has increased to 76.6 years now, Phap Luat newspaper reported.

The proposal has taken into account the increase in demand for jobs and social insurance fund stability.

Vietnam has had an aging population since 2014. In 2000, the country had an additional 1.2 million laborers, but the number has plunged to roughly 400,000 a year now. Some 7% of Vietnamese are aged 60 years and above.

In addition, Vietnam is listed as one of the countries with the fastest aging population in the world, the minister added.

As for social insurance stability, the term for paying social insurance premiums among laborers is short. Retirees in Vietnam enjoy an average pension rate of 70%, though the rate is only 45% in other countries.

“We have come up with a roadmap for this issue to reduce the impact on workers,” the minister was cited by Tuoi Tre Online newspaper as saying.

Accordingly, the ministry proposed two options for adjusting the retirement age.

Under the first option, the retirement age would be 60 years and three months for men and 55 years and four months for women, starting from 2021. In the following years, three months would be added annually for men and four months for women until they reach 62 and 60 years old, respectively.

Under the second option, the retirement age would be 60 years plus four months for men and 55 years plus six months for women. After that, four months would be added for men and six months for women every year until they reach 62 and 60, respectively.

Under the first option, males retire at the age of 62 in 2028 and females retire at the age of 60 in 2035. The respective years are 2026 and 2030 under the second option.

 

Moreover, laborers are allowed to take early retirement, at a maximum of five years earlier than the usual retirement age, if they have health problems, have to work in a laborious and noxious environment or work in particular professions.

The Government is reviewing all sectors to allow certain laborers to take early retirement. For example, those working in the coal mining sector should take early retirement, while professors, renowned scientists and those working in courts and procuracies will be encouraged to work as long as possible, Dung said.

Some laborers can even retire at the age of 50. Laborers can take early retirement and are entitled to incentives, in line with the prevailing regulations, the minister said.

In response to questions on the possible effects of the retirement age increase proposal on jobs for the young, Minister Dung confirmed that the proposal will leave no negative impact on young laborers. At present, 46% of retirees have to continue to work.

Although the Government proposed choosing the first option, many NA deputies stressed that the ministry’s explanation was not convincing, according to the Vietnam News Agency.

Ngo Trung Thanh, a member of the NA’s Legal Committee, asked the Ministry of Labor, Invalids and Social Affairs to clarify the foundation for the retirement age increase proposal and the gap of two years rather than the current five between the retirement ages of men and women.

Meanwhile, the NA’s Committee for Social Affairs required the ministry to consult with laborers on the proposal. SGT

Ngoc Lan

Retirement age adjustment needs to be flexible: expert

Retirement age adjustment needs to be flexible: expert

Bui Sy Loi, vice chairman of National Assembly’s Committee for Social Affairs talks to Hải Quan (Customs) newspaper about a proposal to increase retirement age in the draft amended Labour Law.

Vietnam plans to increase retirement age amid rapid aging

Vietnam plans to increase retirement age amid rapid aging

According to the draft of the revised Labor Code, the retirement age will be raised to 62 for males and 60 for females.

Two scenarios for increasing retirement age

Two scenarios for increasing retirement age

Two scenarios for increasing retirement age

 
 

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