This is a significant step forward in building a multi-tiered social security system that supports millions of elderly people who lack stable income in their old age.
Millions of elderly people do not have pensions or benefits.
According to statistics from the Ministry of Interior (formerly the Ministry of Labour, Invalids and Social Affairs), as of December 31, 2022, there were approximately 14.4 million retirees nationwide.
The Vietnam General Confederation of Labor estimates that approximately 5 million elderly people aged between 60 and 80, who are not from impoverished households, are not disabled, and do not receive monthly allowances, may face difficulties in old age.
The trade union organization stated that many countries consider old-age benefits as an important layer in a multi-tiered social insurance system. Therefore, the state budget needs to provide an income guarantee for elderly people who do not have a pension or monthly social insurance benefits.
In the long term, the trade union recommends a policy of mobilizing social support for this group with higher benefits and a suitable roadmap for reducing the retirement age for social pensions.
People aged 75 and over who do not receive a pension will be eligible for social retirement benefits starting July 1st.
The Social Insurance Law 2024 (effective from July 1st) stipulates that social retirement benefits are a type of social insurance guaranteed by the state budget, built on the basis of inheriting and developing in part the regulations on monthly social allowances for the elderly.
Accordingly, when the Law officially comes into effect, the age for receiving social retirement benefits will be reduced by 5 years compared to the current age for receiving monthly social benefits for the elderly (80 years old). Therefore, Vietnamese citizens aged 75 and above who do not receive a pension or monthly social insurance benefit will be eligible to receive social retirement benefits.
Vietnamese citizens aged 70 to under 75 who belong to poor or near-poor households and meet the eligibility criteria are entitled to social retirement benefits. The monthly social retirement benefit amount 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 level of social retirement benefits.
Depending on socio-economic conditions, budget balancing capacity, and mobilization of social resources, the Provincial People's Committee submits to the Provincial People's Council for decision on providing additional support to recipients of social retirement benefits.
Based on the Government's proposal, in accordance with the socio-economic development conditions and the state budget capacity of each period, the Standing Committee of the National Assembly decided to gradually reduce the age for receiving social retirement benefits.
Accordingly, Vietnamese citizens who have reached retirement age and have contributed to social insurance but do not meet the legal requirements for receiving 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, are entitled to a monthly allowance from their own contributions.
The duration and amount of monthly benefits are determined based on the employee's social insurance contribution period and contribution basis. The minimum monthly benefit amount is equal to the monthly social retirement benefit.
In cases where the total amount calculated based on the period of social insurance contributions of the employee is higher than the amount used to calculate the monthly allowance equal to the social retirement allowance at the time of settlement for the period from reaching retirement age to reaching the age for receiving social retirement allowance, the employee is entitled to receive the higher monthly allowance.
Source: https://www.sggp.org.vn/nguoi-cao-tuoi-khong-co-luong-huu-se-duoc-nhan-tro-cap-500000-dong-tu-1-7-2025-post799545.html
Comment (0)