Latest: From July 1, 2025, pensions will be paid in three forms

Forms of receiving pension

The Social Insurance Law 2024 officially takes effect from July 1, 2025, with many important changes and regulations. In particular, regarding the form of receiving pensions, the Social Insurance Law 2024 has new regulations to facilitate policy beneficiaries. Specifically:

For those participating in compulsory social insurance, there will be three forms of receiving pensions and social insurance regimes, including: Through the beneficiary's account opened at a commercial bank or a branch of a foreign bank established and operating in Vietnam. Directly from the social insurance agency or a service organization authorized by the social insurance agency. Through the employer.

From July 1, 2025, pension conditions will have many new points. Illustrative photo

For voluntary social insurance participants, there are two forms of receiving pensions and social insurance benefits, including: Through the beneficiary's account opened at a commercial bank or foreign bank branch established and operating in Vietnam. Directly from the social insurance agency or a service organization authorized by the social insurance agency.

Particularly for people aged 80 years or older, if they have a need, the agency or service organization authorized by the agency will pay pensions and allowances at their place of residence in Vietnam.

Pension regulations

The Social Insurance Law 2024 stipulates that employees who reach retirement age and have paid social insurance for 15 years or more are entitled to receive a monthly pension.

Regarding pension benefits from July 1, 2025, the Social Insurance Law 2024 stipulates that the monthly pension for female employees is equal to 45% of the average salary used as the basis for social insurance contributions, corresponding to 15 years of social insurance contributions; then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.

The monthly pension for male workers is equal to 45% of the average salary used as the basis for social insurance contributions, corresponding to 20 years of social insurance contributions; then for each additional year of contributions, an additional 2% is calculated, up to a maximum of 75%.

In the case of employees who have not paid social insurance for 15 years, they should continue to participate in social insurance to have the opportunity to enjoy higher benefits such as: When continuing to participate in social insurance, employees will enjoy higher benefits because the benefits are calculated based on the payment period such as sickness, work accident, occupational disease, etc.

In case a social insurance participant has reached retirement age (but has not yet paid social insurance for 15 years to receive a pension) and is not yet old enough to receive social pension benefits, if he/she does not receive a one-time social insurance payment and does not reserve the time of social insurance payment and has a request, he/she will receive a monthly allowance from his/her own social insurance payment.

The Law on Social Insurance 2024 also stipulates changes in the form and place of receiving monthly pensions and social insurance benefits. Accordingly, those who are receiving monthly pensions and social insurance benefits and wish to change the form of receiving or change the place of receiving due to changing their place of residence within the country must send a written document to the social insurance agency where the payment is being made.

Bao Thoa

Source: https://congthuong.vn/moi-nhat-tu-172025-chi-tra-luong-huu-qua-ba-hinh-thuc-386764.html