Retirement age may go up due to trade deals
Updated : Tuesday, November 20, 2018 2:47 PM (GMT+0700)

The retirement age formale and female workers could increase from 60 and 55 at present to 62 and 60respectively from 2021, according to the Ministry of Labour, Invalids andSocial Affairs (MOLISA).

 
The retirement age for male and female workers could increase from 60 and 55 at present
to 62 and 60 respectively from 2021, according to the Ministry of Labour, Invalids and Social
Affairs - Photo: kiemsat.vn

At a meeting on November 19 to discuss new-generation freetrade agreements (FTAs) co-hosted by MOLISA and the International LabourOrganisation, Nguyen Van Binh, deputy head of the ministry’s Department ofLegislation, said some contents in Vietnam’s Labour Code would be adjusted tofit the provisions of new generation FTAs.

These regulations touch upon the difference between theretirement ages of men and women, disability employment and occupations inwhich female employment is prohibited.

According to the current law, female workers can retire fiveyears before their male peers.

Binh said applying the new retirement ages immediately couldcause problems for people who were preparing for retirement.

Under one plan, the retirement age would add six months at atime until it reached the targets set by the Government.

For instance, if a man retires in 2020, the retirement agewould be 60. However, if he retires in 2021, the retirement age would be 60years and six months.  If he retires in 2022, the retirement age would be61 and so on.

The change is aimed at balancing the pension fund and thebenefit fund for people with disabilities.

These funds were forecast to run dry if the currentretirement age was kept unchanged.

“Regulations in the Labour Code draft revision also focus onprotecting female workers during maternity leave”, Binh said.

The draft revision is set to be presented to the NationalAssembly in May 2019 and be submitted for approval in October 2019.  

New generation FTAs include non-trade provisions related tolabour, the environment, sustainable development commitment and goodmanagement.

The FTAs include the Vietnam-European Free Trade Agreement(Vietnam-EU FTA) and the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP).

Vietnam officially became the seventh member of the CPTPP onNovember 12.

Nguyen Van Giau, the NA’s external relations committeechairman, said that by approving the agreement, Vietnam had shown willing andability to integrate with the international community, respond to thedevelopments of the global economy, and progress with other free tradeagreements.

The CPTPP agreement was signed by Vietnam and ten othereconomies in the Asia-Pacific region last March in Chile after the US withdrewfrom the Trans-Pacific Partnership in 2017.

Up to 98 percent of tariff lines will be lifted when theCPTPP comes into force.

Source: VNS/VNA

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