The amended Social Insurance Law, passed by the National Assembly on June 29, 2024 and effective from July 1, 2025, will have many important changes in pension regimes and social insurance policies. Specifically as follows:
1. Reduce the minimum number of years of social insurance contributions to receive pension
2. Adjust the pension rate calculation method
With the reduction in the minimum number of years of social insurance contributions, the pension calculation formula also changes.
For women, the pension rate remains the same as before, calculated at 45% of the average salary with 15 years of social insurance contributions, then each additional year will add 2%, up to a maximum of 75% with 30 years of contributions.
For men, the rate remains at 45% for 20 years of social insurance contributions, then each year adds 2%, up to a maximum of 75% at 35 years of contributions. In particular, the new law adds a formula for men with 15 to less than 20 years of contributions, with the benefit starting at 40% and each additional year adding 1%, up to a maximum of 75% at 35 years of contributions.
3. Additional one-time pension upon retirement
Employees whose number of years of social insurance contributions exceeds the maximum number of years of pension entitlement (30 years for women and 35 years for men) will receive a one-time subsidy for each surplus year, equal to 0.5 month's salary, paid at the same time as receiving pension.
4. Add social pension benefits
The new law adds a social pension scheme for those without pensions, with subsidies paid by the state budget. In particular, the age for receiving social benefits has been reduced from 80 to 75 years old, and 70 years old for those from poor and near-poor households.
5. Monthly allowance for people not eligible for pension
Employees who are old enough to retire but have not paid social insurance for 15 years will receive monthly social insurance benefits from the social insurance fund they have paid until they are old enough to receive social pension benefits. During this time, employees will have their health insurance premiums paid by the state budget.
6. Tighten conditions for one-time withdrawal of social insurance
To limit the situation of one-time withdrawal of social insurance, the Social Insurance Law 2024 stipulates that employees participating in social insurance from July 1, 2025 are only allowed to withdraw social insurance one-time in some special cases such as settling abroad, suffering from a serious illness, having a working capacity reduction of 81% or more, or reaching retirement age but not having enough years of social insurance contributions.
The time to process one-time social insurance withdrawal is shortened to 7 working days.
7. Expanding the scope of participation in compulsory social insurance
The 2024 Social Insurance Law expands the scope of compulsory social insurance participation to include groups that have never participated before, such as registered business owners, part-time workers, unpaid business managers, etc. It is expected that about 3 million workers will be included in the compulsory social insurance system.
8. Supplementing maternity benefits for voluntary social insurance participants
Employees participating in voluntary social insurance will enjoy additional maternity benefits, including subsidies for female employees giving birth.
Previously, voluntary social insurance only had retirement and death benefits.
9. Change the basis for calculating social insurance contributions and benefits
The 2024 Social Insurance Law changes the term “basic salary” to “reference level” as the basis for calculating social insurance contributions and benefits. If the State has not abolished the basic salary, the reference level will be equal to the current basic salary.
10. Strengthen sanctions for violations of social insurance
The new law stipulates a fixed late payment interest rate of 0.03%/day on the late payment amount, instead of being calculated based on the interbank interest rate as before. At the same time, the regulations also emphasize the collection and criminal handling of employers' acts of evading social insurance payments.
Source: https://baophuyen.vn/xa-hoi/202506/10-diem-moi-dang-luu-y-trong-chinh-sach-bhxh-tu17-905246e/
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