English Review
Minister Dao Ngoc Dung: “It is necessary to increase the retirement age”
09:56 AM 2019-05-31
(LĐXH)- In the morning of May 29, Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung had a quick exchange with the press in the corridor of the National Assembly on the Labor Code Project (revised), especially the issue of increasing the retirement age.
Vietnam has officially entered the process of aging population, forecasting that it will take less than 20 years for the people of aged 65 and over to increase from 7% to 14% of the total population, a high rate in the world. This will pose major challenges to ensure social security infrastructure.
Minister Dao Ngoc Dung exchanging with press
We affirm that Vietnam is in time of golden population, but in fact it began from 2014. In 2000, the average number of people entering our working age was 1.2 million, coming now the workforce has fallen to 400,000 people.
In terms of labor force, it can be said that the rate of labor entering the working age is decreasing, about 7% of people aged 60 and over.
In response to this issue, Minister Dao Ngoc Dung said: "The Resolution 28 of Central Committee of the Communist Party of Vietnam has clearly raised the objectives and purposes of adjusting the retirement age. In particular, the adjustment of retirement age must take into account the growth factor of employment, sustainability and must be based on many other goals, such as: to ensure sustainable insurance fund in the long term, the issue of population aging... It can be said that, the goal of adjusting retirement age has a long vision, but it must adapt to the population aging trend in 2035”.
The Minister also mentioned the current situation: If a person pays an average of social insurance for 28 years, it is enough for him to enjoy for 10 years, the remaining 9.5 years must take the social insurance contribution of the next generation to share the previous one.
The time to pay social insurance for men and women is low, but the time for enjoying social insurance is very high. Normally, the highest rate of insurance is 30 to 45%, but the highest rate in Vietnam is 75%, an average of 70%.
Therefore, it is necessary to increase the retirement age, extend the time to pay social insurance and create material wealth.
Adjusting the retirement age is among the many projects and other laws, not just this Labor Code.
“The workers should understand that this is a gradual adjustment and the first man to retire at the age of 62 will be in 2028 and the first women to retire at the age of 60s will be in 2035” – the Minister added.