Pension Rights
The National Social Insurance Fund (NSIF) Act 2023 creates a pension program for private sector workers. Now, every employee in the private, NGO, or government sectors is to be insured by a pension fund.
Law provides for both full and early pension. For a full pension, a worker must have attained pensionable age with at least 180 months (15 years) of contributions. Early pension is available to the workers who are with five years of the pensionable age and have at least 180 months (15 years) of contributions.
Old-age pensions are funded as a contributory social-insurance scheme, financed by employers and employees, managed by the NSIF. The amount of the monthly pension is 30% of the average monthly earnings of the retired insured person, supplemented by 1.5% of his/her average monthly earnings for every 12 months of pension insurance for every 12 months above the required 180 months. The maximum pension is 67.5% of the average earnings. The minimum monthly pension is 80% of the minimum wage.
Source: §40-46 of the National Social Insurance Fund (NSIF) Act 2023
Dependents' / Survivors' Benefit
The National Social Insurance Fund (NSIF) Act 2023 creates a pension program for private sector workers. Now, every employee in the private, NGO, or government sectors is to be insured by a pension fund.
The Social Insurance Act provides for a survivor benefit. Survivors' benefit is based on the old age or disability pension the deceased person received or was entitled to receive. There is no minimum qualifying period.
Old-age pensions are funded as a contributory social-insurance scheme, financed by employers and employees, managed by the NSIF.
Eligible survivors include a widow or a dependent widower and children younger than 18 years (21 years for students ). . In case of a widow or widower, 40% of the pension is payable. If there are no dependent children, a widow or a widower receives 100% of the pension. In case of a dependent child(ren) under 18 (21 years of students), 60% of the pension is divided equally among children. Where there is no widow/widower, 100% of the pension is divided among dependent children. In case of several widows, or orphans or the presence of parents, the prescribed shares are equally distributed. In case there is no dependent spouse or children, 100% of the pension is payable to the parents of the deceased.
Source: §51-52 of the National Social Insurance Fund (NSIF) Act 2023
|
No. of case
|
Person entitled to Pension
|
Widows
|
Sons and
daughters
|
Parents
|
Brothers
and sisters
|
Percentage (%)
|
|
1
|
Widow, Widower or Widows
|
90%
|
-
|
-
|
-
|
90%
|
|
2
|
Widow, Widower, widows and sons and daughters
|
50%
|
50%
|
-
|
-
|
100%
|
|
3
|
Widow, Widower, widows and parents
|
50%
|
-
|
50%
|
-
|
100%
|
|
4
|
Widow, Widower, widows, sons, daughters and parents
|
30%
|
40%
|
30%
|
-
|
100%
|
|
5
|
Sons and daughters
|
-
|
100%
|
-
|
-
|
100%
|
|
6
|
Sons, daughters and parents
|
-
|
70%
|
30%
|
-
|
100%
|
|
7
|
Parents
|
-
|
-
|
90%
|
-
|
90%
|
|
8
|
Brothers and sisters
|
-
|
-
|
-
|
75%
|
75%
|
|
9
|
Brothers, sisters Widow, Widower or widows
|
75%
|
-
|
-
|
25%
|
100%
|
|
10
|
Brothers, sisters and parents
|
-
|
-
|
75%
|
25%
|
100%
|
Source: §74-78 & Schedule I of the Social Insurance Act 1990, amended in 2008
Invalidity Benefit
The National Social Insurance Fund (NSIF) Act 2023 creates a pension program for private sector workers. Now, every employee in the private, NGO, or government sectors is to be insured by a pension fund.
Invalidity pensions are funded as a contributory social-insurance scheme, financed by employers and employees, managed by the NSIF. The amount of the monthly pension is 30% of the average monthly earnings of the retired insured person, supplemented by 1% of his/her average monthly earnings for every 12 months of pension insurance for every 12 months above the required 180 months. The minimum monthly pension is 80% of the minimum wage.
Source: §47-49 of the National Social Insurance Fund (NSIF) Act 2023
