Proposals to Revise the Retirement Age for Female Workers

 


A seminar on “Proposals to Revise the Retirement Age of Female Workers” was held on August 13, 2012 by theVietnam Women’s Union. Invited guests were Ms. Ha Thi Thanh Van, a member of the Central Committee and  Deputy Director of the Law and Policy Committee, Ms. Tran Thanh Binh, Deputy Chairperson of the Vietnam Women's Union, together with delegates from many provinces and representatives from universities and research institutions in Ho Chi Minh City.


In conjunction with the National Strategy for the Advancement of Women to ensure gender equality, this seminar was held to collect various diversified and thoughtful ideas from the attendees to submit to the Government.  The intention was to ask for further consideration of  an adjustment to the retirement age of women, especially for those who are civil servants and those with highly specialized skills and technical qualifications.


The Vietnamese Labor Code stipulates that male workers retire at age 60 and female workers at age 55. Section III, article187 of the Labor code cites that: "The employee who has highly specialized skills and technical qualifications, a management position, and in other special cases can retire at a higher age but not more than 5 years in the application of the provisions of clause 1 of the article” [2].


The retirement age adjustment has been a controversial issue and has led to many arguments and discussions in public and during the third session of the National Assembly XIII. Many participants at the August seminar agreed with increasing the retirement age to 60 for female civil servants and women with highly specialized skills and technical qualifications because of many reasons and based on several arguments. One example of an argument for increasing the retirement age of women presented at the seminar was given by an expert specializing in analyzing Labor Law and Social Insurance. She cited that Labor Laws affect 50 percent of the population; therefore, when recommending proposals to the Government, the Vietnam Women’s Union has to have scientific evidence based on various research aspects, including politics, social economics, health, and biopsychology, to prove how critical it is to adjust the retirement age for women. In addition, references from other countries are needed to see how and at what age women retire according to specific groups. The developed countries like Britain, the United States, Canada, Sweden, Italy, Australia, Singapore, South Korea, or even India stipulate the same retirement age for both female and male employees.  In the United States for instance, in 1935 the retirement age was 65, up to 3 years higher than the average life expectancy. Today retirees can retire at an age ranging from 62 to 67; that is, depending on the number of working years, their own rights, their own choices, or their self-determination, retirement age can vary from 62 to 67. If the retirees still have the desire to continue working, they have the right to do so voluntarily, not because of privileges, or asking for it, or any obligations. In the long run, the United States has to increase the retirement age due to the high risk of an imbalance in the social security fund. In fact, an aging population is challenging to all nations around the world, including Vietnam. Sooner or later, the Vietnam Labor Code must be adjusted for the retirement age of women in order to reduce the burden, not only for pension benefits or social insurance funds, but also for the empowerment of women who deserve to have the right to choose the appropriate time to retire, and to ensure gender equality regarding education, training, promotion, advancement opportunities, and other benefits [4,5,7].


Other attendees stressed against increasing the retirement age of women because many of them who have leadership abilities, good management skills, scientific-technical-qualifications, or are skilled workers and are forced to retire at age 55 are faced with inequality both ways. Society encourages women to work and contribute to society, however, their talent and gray matter are wasted if they are no longer working at either  early age. To train people who have earned their Master’s, Ph.D’s, or academic titles such as Professor or Scientist is very expensive, very difficult, and very time-consuming. Moreover, these groups of intellectual women are still young, dynamic, strong, experienced, and knowledgeable; we should not let them retire at the age of 55 if they still want to and have the passion to devote more years to their professions. If we keep the previous regulations in effect, Vietnam cannot meet the tasks of national political goals, the trend of international integration, the needs and expectations of women, or promoting women’s affairs and gender equality as the Politburo Resolution 11-NQ/TW indicates on women’s work in the period of accelerated national industrialization and modernization. Furthermore, the provisions for retiring at the age of 55 will lead to triangular-shaped consequences; that is, the widest part of the triangle is mainly preschool-elementary school female teachers, women with higher education at the next level, and the percentage of female PhDs in the third layer making up about 20%. Then to the top part of the triangle are the female professors, the proportion which makes up only 4 - 12%, and females in the National Congress at 24% as reported in many newspapers.


Associate Professor Truong Thi Hien added that “Men and women should have an equal retirement age because it is a measure of gender equality and civilization of a society, and labor rights for each person. In fact, up to 60 percent of women who retire continued to work.” In addition, promotion, advancement, on-the-job training or educational opportunities are all associated with the age of retirement. With regard to training or education opportunities, if male workers are in the 40 or 45 year-age range, they still have the opportunity to pursue higher education, but women do not. Regarding promotion, women aged 52-55 years, no longer have the opportunity to be promoted or advanced, but men still have one more “term”. Concerning pension provisions, every three-years pensions are raised by one level; however, if women retire at the age of 55 they will be at a two-level pension benefit disadvantage compared to men. In short, to increase the retirement age of women up to 60 is equality for both genders. If any female employees want to leave their job early, that is their choice and right [1,6].


A delegate from Lam Dong Province pointed out that the Labor Code very clearly states that the retirement age at 45 or 50 years of age is for those who are employed in difficult and dangerous work and where their jobs involve exposure to toxic substances that may severely affect their health. However, females working as civil servants or administrators and those with highly specialized skills and technical qualifications should be able to retire at 60. Furthermore, the Labor Code should have “soft” regulations for women; for example, if they have already worked for 20 years and wish to retire early without reducing their social insurance benefits, that should be a possibility.


Another participant from Da Nang City commented that the younger generation may not have a sufficient amount of work if the female employees did not retire at the age of 55. Therefore, we need to consider thoroughly and carefully whether or not we should propose a five-year retirement age increase.


Other opinions analyzed that women at age 55 have many advantages such as: broad and profound experiences, high skills and technical expertise, and more free time to devote to their professions, so they can play as a coach, or guide, or as a mentor for young generations. In addition, after retirement civil servants and scientists continue working and do many different things to contribute to society; therefore, there is no reason for them to take the place of young people. According to statistics, the proportion of retirees still working accounts for 60 percent of the total. More importantly, the increase in retirement age for women to be equal to that of men is fundamental to sustainable development and reduces the risk of an imbalance in social insurance funds in the future because they work longer and receive pension benefits for a shorter period of time. In addition, retirement age adjustment is the basis for changing other policies regarding training and education, salary increase, promotion and rewards, and contributes to the implementation of the Gender Equality Law [1,3].


Doan Thi Ngoc

References

[1] http://phunuonline.com.vn/xa-hoi/hoat-dong-hoi/de-xuat-tang-tuoi-nghi-huu-cho-lao-dong-nu/a71482.html.

[2] Trang 65 Bộ Luật lao động và Luật đất đai sửa đổi bổ sung một số điều của Bộ Luật lao động. NXB Tư pháp năm 2010.

[3] http://www.tienphong.vn/xa-hoi/578374/Tang-tuoi-huu-thoi-gian-nghi-thai-san-tpp.html

[4] http://www.ssa.gov/pubs/10035.html#a0=1

[5] http://vietnamnet.vn/vn/chinh-tri/73456/tranh-luan-quyet-liet-tuoi-nghi-huu-cua-nu.html

[6] http://dantri.com.vn/c20/s20-517090/de-xuat-noi-3-nam-tuoi-huu-voi-lao-dong-nu-khu-vuc-hanh-chinh.htm

[7] http://www.baomoi.com/Cac-nuoc-giau-Co-nen-tang-tuoi-nghi-huu/47/3334509.epi

[8]http://congdoan.most.gov.vn/index.php?option=com_content&view=article&id=2490:quy-dinh-ve-tuoi-nghi-huu-doi-voi-lao-dong-nu-can-thong-nhat-trong-cac-van-ban-phap-luat&catid=51:cac-bai-vit-lien-quan-n-hot-ng-cong-oan&Itemid=73

http://gas.hoasen.edu.vn/en/gas-page/proposals-revise-retirement-age-female-workers