People without pensions will receive a monthly allowance starting July 1st.

From July 1, 2025, according to the 2024 Social Insurance Law, people who do not meet the eligibility requirements for a pension and are old enough to receive retirement benefits will be entitled to a monthly allowance.

Báo Công thương•14/04/2025

Elderly people are entitled to social retirement benefits.

From July 1, 2025, millions of elderly people nationwide who do not have a pension will officially receive a monthly social retirement allowance, as stipulated in the 2024 Social Insurance Law.

Specifically, the 2024 Social Insurance Law stipulates that, from July 1st, a social retirement allowance will be added to form a multi-tiered social insurance system. Accordingly, the age for receiving a social retirement allowance will be 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.

People without pensions will receive a monthly allowance starting July 1st.

From July 1, 2025, the conditions for receiving a pension will have several new points. (Illustrative image)

See more:

New policy on early retirement: Receive full pension and 3 allowances.

Pension and lump-sum retirement benefits range from 1-7.

The monthly social retirement 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 retirement allowance.

Depending on socio-economic conditions, budget balancing capacity, and mobilization of social resources, the Provincial People's Committee shall submit to the Provincial People's Council for decision on providing additional support to recipients of social retirement benefits.

Notably, recipients of social pension benefits also have their health insurance covered by the State, and upon their death, their relatives or those organizing the funeral will receive a funeral allowance as prescribed. Therefore, if simultaneously eligible for monthly social benefits, the elderly will receive a higher benefit level from both schemes.

Subsidies for people who are not eligible for a pension.

In addition to supporting the elderly without pensions, the 2024 Social Insurance Law (Article 23) also adds a monthly allowance for workers who do not meet the eligibility requirements for pensions and have not yet reached the age to receive social retirement benefits, specifically:

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 benefit 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.

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.

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

The new policy will help prevent many elderly people from living without income, while also creating opportunities for those who previously participated in social insurance but did not meet the contribution period requirements.

Bao Thoa

Source: https://congthuong.vn/nguoi-khong-co-luong-huu-nhan-tro-cap-hang-thang-tu-17-382889.html