To truly maximize their retirement benefits in the legal sense, workers need to achieve certain standards. The ceiling for pension entitlement is 75%. The average salary (for compulsory social insurance) or average income (for voluntary social insurance). This 75% ceiling is applied. Law on Social Insurance No. 41/2024/QH15 regulations and Effective from July 1, 2025.
Like :
- Female workers: need Pay for the full 30 years to reach 75%.
- Male workers: need Pay for the full 35 years to reach 75%.
1. The term "maximum pension" needs to be understood correctly in terms of two levels: the proportional ceiling and the base calculation ceiling.
In human resource and compensation policy management, "maximum" is not just about Pay for the full year; also background optimization.
1.1. Ceiling on benefit rates
The law clearly stipulates that the monthly pension is calculated as a percentage and The maximum level is 75%..
1.2. Ceiling height calculation
Even at 75%, the "pension amount" still depends on... average salary used as the basis for contribution; while salary used as the basis for contributions has limits, max equal to 20 times the reference level at the time of closure (applicable according to the cases stipulated by law).
Therefore, to truly "maximize" results, it is necessary to manage two factors simultaneously:
- Enough years to reach the 75% ceiling.
- A valid, stable, and appropriate contribution base that aligns with the contribution income strategy. within the legal framework.
2. Number of years of contributions required to reach the 75% ceiling for mandatory social insurance.
2.1. Legal formula (compulsory social insurance)
The law stipulates the monthly pension amount (for those eligible under the mandatory pension scheme) as follows:
- Female workers: 45% corresponding 15 years close; then an additional 2% each yearUp to 75%.
- Male workers: 45% corresponding 20 years close; then an additional 2% each yearUp to 75%.
In the specific case of Male workers who have contributed for 15 to less than 20 years They will receive a pension starting at 40% of their average monthly salary used for social insurance contributions, then an additional 1% for each year of contribution until they reach 19 years, and from the 20th year onwards, they will receive 45% (an additional 2% each year).
The law stipulates the conditions for receiving a compulsory pension as follows: having contributed for 15 years or more and meet the retirement age requirements stipulated by labor law. This allows businesses and employees to "unlock" retirement benefits earlier in terms of the minimum number of years required.
2.2. From that, deduce the number of years to reach 75%.
- Female workers:
45% at the 15-year mark; need an additional 30% to reach 75%; adding 2% each year ⇒ needing an additional 15 years ⇒ 15 + 15 = 30 years. - Male workers:
45% at the 20-year mark; need an additional 30% to reach 75%; adding 2% each year ⇒ needing an additional 15 years ⇒ 20 + 15 = 35 years.
So, If the target is a 75% ceiling, the closure plan should be "framed" at a 30-year (for women) or 35-year (for men) timeframe, then transition to another optimal strategy (analyzed in section 4).
2.3. Summary Comparison Table (Easy to Remember)
To make it easier to understand, please refer to the summary in the table below:
| Criteria | Female workers | Male workers |
| The 45% benefit level requires contributions. | 15 years | 20 years |
| Each year, an additional fee is charged. | 2% | 2% |
| Number of years of contributions required to reach 75% | 30 years | 35 years |
| Legal grounds | Clause 1, Article 66, Social Insurance Law 2024 | Clause 1, Article 66, Social Insurance Law 2024 |
3. Necessary and sufficient conditions for receiving the maximum pension.
Paying for the full number of years (30 or 35 years) is only a necessary condition. To actually receive the maximum pension without any deductions, you need to satisfy the "sufficient conditions" regarding... Retirement age.
3.1. Regulations on retirement age
According to the regulations at Labor Code 2019 (still in effect regarding age guidelines) and is cited in Article 64 of the Social Insurance Law 2024:
-
The retirement age is gradually increasing according to a schedule until it reaches... 62 years old for men (in 2028) and 60 years old for women (in 2035).
-
As of December 2025: The retirement age for men is 61 years and 3 months, of women is 56 years and 8 months.
3.2. Warnings about early retirement
If you have contributed for the required number of years (e.g., 35 years for men) but request early retirement (except in cases of reduced work capacity or working in particularly strenuous or hazardous occupations), you will be penalized. penalty for benefit rate.
Specifically, Clause 3, Article 66 of the Social Insurance Law 2024 regulations:
The monthly pension of eligible individuals is calculated as prescribed in Clauses 1 and 2 of this Article, and then continues thereafter. per year If you retire before the prescribed age, then... 2% reduction.
Real life example:
A male worker who contributed to social insurance for 35 years (and should have received 75%) retired two years earlier than the legally mandated age.
-
Initial ratio: 75 %
-
Reduction rate: 2 years x 2% = 4%
-
Actual receipt rate: 75% – 4% = 71 %
Therefore, To get the "maximum" in the literal sense, you must: Sufficient years of social insurance contributions + Reaching the retirement age.
4. If the 75% ceiling has already been reached, is there still any benefit in paying more?
The law designs a mechanism for "optimizing total benefits," in the following direction: Contributing beyond the maximum rate does not increase the pension rate., but problems may arise one-time retirement allowance.
4.1. Those who have contributed beyond 35 years (men) or 30 years (women) will receive a one-time allowance.
The law stipulates:
- Male actors have been in the industry for over 35 years, while female actors have been in the industry for over 30 years. then when they retire, In addition to their pension, they also receive a one-time allowance..
Each year the amount paid is higher. equal to 0,5 times The average salary used as the basis for contributions.
4.2. Cases where individuals are already eligible for a pension but continue to make contributions.
If an employee is already eligible for a pension but continues to contribute, the law also stipulates a subsidy mechanism that increases benefits for the additional contribution period (calculated at "twice the average amount..." for each year of increased contribution, within the limits prescribed by law).
After reaching 75%, businesses and employees should assess the “benefit performance” between (i) maintaining contributions to receive the statutory lump-sum benefit and (ii) optimizing a legitimate income structure that balances costs, benefits, and compliance.