Vietnam is set to implement significant reforms under its National Skill Development Plan, aimed at enhancing labor skills and adapting to economic changes by 2025. This comprehensive initiative is not only focused on professional training but also revises retirement and pension policies, highlighting the government's commitment to improving workforce sustainability.
A key component of the plan is the adjustment of pension calculations for retirees before July 1, 2025. Under the regulations specified by Article 56 of the 2014 Social Insurance Law, male workers will receive 45% of the average monthly salary used for calculating social insurance contributions after 20 years of service, whereas female workers will receive the same percentage after 15 years. Each additional year worked beyond these benchmarks increases the pension payout by 2%, maxing out at 75% of the average salary.
Starting from July 1, 2025, pension calculations will switch to new provisions under Article 66 of the 2024 Social Insurance Law. For female workers retiring post-2025, the base pension will still be 45% after 15 years of contributions, with similar increments for years worked, whereas male workers must complete the full 20 years. For those who work between 15 and 20 years, the pension will begin at 40%, rising by only 1% for each additional year.
With these revisions, the retirement age is also set to increase gradually, with men reaching 62 years by 2028 and women at 60 by 2035. This adjustment aims to align workforce longevity with national economic needs.
The skill development aspect targets enhancing the trained workforce, aiming for 75% of laborers to have undergone formal training, with at least 55% holding formal certifications. Vocational training initiatives will prioritize women, disabled individuals, and various economically disadvantaged populations, reflecting the government's focus on inclusivity.
Programs targeting vocational education are established for several demographics as outlined by specific regulations such as Decision No. 46/2015/QD-TTg and the amendments included under Decision No. 12/2024/QD-TTg. These policies facilitate access for those over 15, including women from rural areas, veterans, and low-income individuals, to acquire necessary skills for employment.
New provisions will also offer support to those displaced due to land acquisition and laborers within small to medium enterprises who seek certification. The plan's framework stipulates training must adhere to local economic growth strategies and aim to prepare participants effectively for the labor market.
These comprehensive reforms not only address immediate labor needs but also bolster Vietnam's position on the global stage as it seeks to upskill its workforce amid rapid economic changes. With the integration of vocational training and adjustments to retirement benefits, the initiative balances immediate support for pensioners with long-term investment in the country's human capital.
According to local government officials, "The changes aim to provide more significant support for elderly citizens and facilitate greater workforce participation across different demographics as we face increasing challenges due to globalization and technological advancements." This sentiment captures the essence of why such reforms are deemed necessary for maintaining social stability and promoting fairness within the workforce.
Overall, Vietnam’s National Skill Development Plan emphasizes not only the enhancement of skills among the workforce but also the establishment of a more equitable retirement system, contributing to greater economic resilience and societal well-being.