Social Insurance Law with many new features

From July 1, 2025, the 2024 Social Insurance Law will come into effect with many new provisions.

Social Insurance Region XXV launches campaign to promote and encourage people to participate in voluntary social insurance.

Supplementing social retirement benefits to form a social insurance system. Multi-tiered (including: social retirement benefits; compulsory and voluntary social insurance; supplementary retirement insurance to aim for universal coverage).

Social retirement benefits as stipulated in the 2024 Social Insurance Law are a type of social insurance guaranteed by the state budget, built on the basis of inheriting and developing part of the regulations on monthly social allowances for the elderly, which stipulate that: The age for receiving social retirement benefits is 5 years lower than the current age for receiving monthly social allowances for the elderly.

Specifically: Vietnamese citizens aged 75 and above who do not receive a monthly pension or social insurance benefit are entitled to a social retirement allowance. Vietnamese citizens aged 70 to under 75 who belong to poor or near-poor households and meet the eligibility criteria are also entitled to a social retirement allowance.

The monthly social pension allowance is determined by the Government in accordance with the socio- economic development conditions and the capacity of the state budget in each period. Every three years, the Government reviews and considers adjusting the social pension allowance. Depending on the socio-economic conditions, budget balance, and mobilization of social resources, the Provincial People's Committee submits to the Provincial People's Council for decision on additional support for social pension recipients.

Paying pensions and social insurance benefits to people in Lam Dong.

Individuals who are eligible for both a social retirement pension and a monthly social allowance are entitled to a higher allowance. They are covered by the state budget for health insurance while receiving a social retirement pension, and upon their death, the organization or individual responsible for the funeral will receive funeral expense support as stipulated by the law on the elderly.

Adding regulations to increase the link between the social pension benefit tier and basic social insurance.

The regulations now include a monthly allowance for workers who are not eligible for a pension and are not yet old enough to receive social retirement benefits. Specifically: Vietnamese citizens who have reached retirement age but do not have enough contribution time to receive a pension and are not yet eligible for social retirement benefits, if they do not receive a lump-sum social insurance payment and do not retain their contributions, and make a request, will receive a monthly allowance from their own contributions. The duration and amount of the monthly allowance will be determined based on the worker's contribution period and the basis of their social insurance contributions. The minimum monthly allowance will be equal to the social retirement benefit.

Workers learn about voluntary social insurance.

In cases where the total amount calculated based on the period of contributions to social insurance is higher than the amount used to calculate the monthly allowance, which is equal to the social retirement allowance at the time of benefit settlement for the period from reaching retirement age to reaching the age for receiving social retirement benefits, the employee is entitled to receive the higher monthly allowance.

In cases where the total amount calculated based on the duration of social insurance contributions is insufficient for the employee to receive monthly benefits until reaching the retirement age, the employee may, if they so wish, make a lump-sum payment for the remaining amount to continue receiving social retirement benefits until they reach the retirement age.

The monthly allowance is adjusted when the Government makes adjustments to pensions and monthly social insurance benefits. During the period of receiving the monthly allowance, the state budget pays for health insurance; upon death, dependents are entitled to a lump-sum allowance for the months not yet received and a funeral allowance if eligible according to regulations.

Disseminating information about voluntary social insurance to business owners and traders in Xuan Huong ward, Da Lat city, Lam Dong province.

Expanding the scope of those eligible to participate in and fully benefit from social insurance schemes by extending mandatory social insurance to include business owners of registered households; non-professional workers at the commune, village, and neighborhood levels; part-time workers; business managers, auditors, representatives of state capital, and representatives of enterprise capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or auditors, and other elected management positions of cooperatives and cooperative unions as prescribed by the Law on Cooperatives who do not receive salaries.

Social Security staff from Region XXV visited people's homes to promote the benefits of participating in voluntary social insurance.

Adding maternity benefits to the voluntary social insurance policy.

Voluntary social insurance participants who meet the eligibility requirements are entitled to a maternity allowance of 2 million VND for each newborn child, guaranteed by the state budget; employees do not have to contribute any additional funds compared to current regulations. Female workers from ethnic minorities or Kinh women whose husbands are from ethnic minorities and belong to poor households, when giving birth, in addition to the maternity benefits stipulated in the 2024 Social Insurance Law, are still entitled to other support policies as prescribed by the Government.

Increase the chances of receiving a pension for those participating in social insurance by reducing the minimum number of years of social insurance contributions required to receive a pension from 20 years to 15 years.

The regulations are being amended to increase benefits, enhance attractiveness, and encourage workers to preserve their contribution period to receive a pension instead of a lump-sum social insurance payment.

Workers who have ceased participating in social insurance and request it are entitled to a lump-sum social insurance payment if they fall into one of the following categories: Reaching retirement age but not having contributed to social insurance for 15 years; Emigrating abroad; Suffering from cancer, polio, decompensated cirrhosis, severe tuberculosis, or AIDS; Having a disability level of 81% or higher; Severely disabled; Workers who contributed to social insurance before July 1, 2025, and after 12 months are neither subject to mandatory social insurance nor voluntary social insurance, and have contributed for less than 20 years; Members of the armed forces who, upon demobilization, discharge, or resignation, are neither subject to mandatory social insurance nor voluntary social insurance and do not meet the conditions for receiving a pension.

Workers who do not receive a lump-sum social insurance payment but instead preserve their contribution period to continue participating have the opportunity to enjoy higher benefits such as: Higher benefit levels when continuing to participate, as benefits are calculated based on the contribution period (sickness, work accidents, occupational diseases, etc.); Easier conditions for receiving a pension; Health insurance contributions paid by the social insurance fund during the pension period; Monthly allowances when not eligible for a pension and not yet old enough to receive social retirement benefits; Health insurance contributions paid by the state budget during the period of receiving monthly allowances. In addition, workers also have the opportunity to benefit from credit support policies for workers who have contributed to social insurance but have lost their jobs.

Officials, staff, and workers of the Social Insurance Department of Region XXV launched a campaign to promote and encourage people to participate in voluntary social insurance and self-paid health insurance.

Specific regulations regarding the "reference level" replacing the "base salary" : The 2024 Social Insurance Law stipulates that the "reference level" used to calculate contributions and benefits for certain social insurance schemes is determined by the Government. Until the base salary is abolished, the reference level stipulated in the 2024 Social Insurance Law is equal to the base salary. At the time the base salary is abolished, the reference level will not be lower than the base salary at that time. The reference level is adjusted based on the increase in the consumer price index, economic growth, and in accordance with the capacity of the state budget and the social insurance fund.

In addition, the 2024 Social Insurance Law also stipulates that the Government shall submit to the National Assembly for consideration adjustments to a number of regulations related to the basis for compulsory social insurance contributions, the method of calculating the average salary used as the basis for calculating pensions and social insurance benefits, and the adjustment of the salary used as the basis for compulsory social insurance contributions when the State applies a new salary regime based on job position, title, and leadership position, replacing the current salary scale system.

In addition, the 2024 Social Insurance Law includes several new points such as: supplementing the right to receive sickness and maternity benefits for part-time workers at the commune level; regulations on supplementary retirement insurance; and better ensuring the right to participate in and receive social insurance benefits for Vietnamese workers working abroad and foreign workers working in Vietnam...

Source: https://baolamdong.vn/luat-bhxh-voi-nhieu-diem-moi-290831.html