Support for the elderly without pensions

According to the Ministry of Labor, War Invalids and Social Affairs (MOLISA), the amended Law on Social Insurance in 2024 adds provisions on retirement benefits. This is a type of social insurance guaranteed by the State budget, built on the basis of inheriting and partly developing from the provisions on monthly social allowances for the elderly.

The law stipulates that the age for receiving social pension benefits is 5 years lower than the current age for receiving monthly social pension benefits for the elderly. Specifically, Vietnamese citizens aged 75 and over do not receive monthly pensions or social insurance benefits; Vietnamese citizens aged 70 to under 75 who are poor or near-poor and meet the conditions are entitled to receive social pension benefits.

Pay pensions and social insurance benefits to beneficiaries

The monthly social pension allowance level is regulated by the Government, in accordance with the socio -economic development conditions and the capacity of the State budget at each period. “Normally, every 3 years, the Government reviews and considers adjusting the social pension allowance level once…”, said a representative of the Ministry of Labor, Invalids and Social Affairs.

When receiving social pension benefits, people have their health insurance paid for by the State budget. When they die, the organization or individual in charge of the funeral will receive funeral expense support according to the law on the elderly.

The Law also assigns the National Assembly Standing Committee to decide on gradually reducing the age of receiving social pension benefits based on the Government's proposal in accordance with socio-economic development conditions and the capacity of the State budget in each period.

Currently, there are about 2 million elderly people aged 80 and over receiving social benefits under the Law on the Elderly. When the revised Law on Social Insurance in 2024 comes into effect, it will be renamed social pension benefits. According to estimates by the Ministry of Labor, Invalids and Social Affairs, an additional 1.2 million elderly people will benefit from this new pension policy.

Not eligible for pension but still receive monthly allowance

The 2024 Social Insurance Law stipulates that Vietnamese citizens who are of retirement age but do not have enough time to pay social insurance to receive a pension (15 years) and are not eligible for social retirement benefits (70-75 years old), if they do not receive a one-time social insurance benefit and do not reserve it but have a request, they will receive a monthly benefit from their own contributions.

The duration and level of monthly benefits are determined based on the employee's social insurance contribution period and basis. The lowest monthly benefit level is equal to the social pension benefit level (currently regulated at 500,000 VND).

In case the total amount calculated according to the payment period and the basis for social insurance payment of the employee is higher than the amount for calculating the monthly allowance equal to the social pension allowance at the time of settlement, the employee will be calculated to receive the monthly allowance at the higher level.

In case the total amount calculated based on the payment period and the basis for social insurance payment is not enough for the employee to receive monthly benefits until reaching the age of receiving social pension benefits, if the employee wishes, he/she can make a one-time payment for the remaining amount to receive until reaching the age of receiving social pension benefits (75 years old).

Mr. Nguyen Duy Cuong, Deputy Director of the Social Insurance Department (Ministry of Labor, Invalids and Social Affairs), said that the monthly allowance level will be adjusted when the Government adjusts monthly pensions and social insurance allowances. The Ministry of Labor, Invalids and Social Affairs and related parties are developing a specific formula for calculating monthly allowances.

During the period of receiving monthly benefits, employees receive health insurance from the State budget. When the employee dies, relatives are entitled to a one-time benefit for the months not yet received and are entitled to a funeral benefit if they meet the prescribed conditions.

Regarding specific instructions for the above regulations, the Government will issue a decree specifying the monthly social pension allowance level, procedures for implementing social pension allowances to be implemented from July 1, 2025 when the Social Insurance Law 2024 comes into effect.

Regarding the implementation of the new Social Insurance Law when it comes into effect, according to the Prime Minister's Decision issued on July 27, to detail this Law, the Government will issue 11 Decrees.

Of which, the Ministry of Labor, War Invalids and Social Affairs will preside over the drafting of 7 Decrees, the Ministry of Finance 3 Decrees and the Ministry of National Defense 1 Decree. Along with that, the Ministries and branches will issue 3 circulars providing detailed instructions for the implementation of the law.

Specifically, the Ministry of Labor, Invalids and Social Affairs will issue 2 circulars, and the Ministry of Health will issue 1 circular. The Decrees and guiding circulars assigned by the Prime Minister to the drafting units are required to be issued and take effect at the same time as the Social Insurance Law 2024, which is July 1, 2025.

According to baotintuc.vn