Retire Early, Live Longer: New Rules for 80s Babies – Calculate Your Payout from January Onwards
Early retirement conditions will begin to change starting in 2025, the new law included Pension The insurance provisions are transitional provisions that are implemented within 5 years of the adoption of the law in 2020, which means that implementation begins in January 2025, which allows early retirement for those born in the eighties before reaching the age of 60, the retirement age.
Early retirement for those born in the 1980s
In this regard, the vice president of the Egyptian trade union, Magdy El-Badawi, said that from the beginning of January 2025, the period of insurance subscription is scheduled to change to 25 years. Early Retirement Age.
Al-Badawi added – while making the statement in “Sada al-Balad” – that the minimum 25 years of service has changed, so that those who started working at 21 after graduation will have an early retirement age of 46. When the insurance period was 20 years instead of 41 years, as well as for those who were insured to work from the age of 18, the retirement age before 2025 will start at 43 instead of 38.
As for early retirement for those born in the 1980s, they can opt out Pension According to the law, before reaching the age of 60, if he has been insured since the age of 18 – the legal age for social insurance – so that the employee meets the conditions for applying for early retirement, which requires an insurance period of 20 years before the start of the new year , he will be 25 next January to apply for early retirement.
Early retirement conditions for those born in the 1980s
Regarding the conditions that must be met before the conditions are revised next January for those born in the eighties, they include the following conditions:
– Availability of subscription period for old age, disability, and death insurance which entitles to a pension not less than (50%) of the last settled wages or income and not less than the minimum pension.
– The pension insurance subscription period should include 240 actual months, equivalent to 20 years, which changes to 25 years at the rate of 300 months at the beginning of 2025.
– He must not have old age, disability and death insurance on the date of submission of distribution request.
– The insured must have a subscription period of not less than three consecutive months or six interrupted months, i.e., not interrupting the payment of insurance subscription for a period of three consecutive months or 6 separate months.
– Individual must be less than 55 years of age, with an insurance period of 20 years before the end of the current year and 25 years at the beginning of next January.
– The insurance rights are settled based on the insurance subscription period, plus the remaining period (5 years) to complete the service.
– There was no disciplinary penalty or attention to which he was associated with the institution.
Settlement fee calculation
Regarding how to calculate the settlement wage for early pensioners, it is calculated according to a calculation process, which is “If the settlement wage by age x insurance factor x is greater than 50.” %, it is like withdrawing from the initial pension, but if it is less than 50% of the settlement wages, then he is not entitled to withdraw from the pension, because there is a certain insurance factor for each age group.