According to current regulations in the Social Insurance Law 2014, if employees reach retirement age and have paid for 35 years for male employees and 30 years for female employees, they will receive the maximum pension (75%).

In case of paying excess years of social insurance participation and receiving 75% of salary, each year is calculated as 0.5 month of average social insurance salary.

However, from July 1, 2025, the new Social Insurance Law (Social Insurance Law 2024) taking effect has added regulations towards increasing one-time subsidies for retirees who continue to work and participate in social insurance.

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Increase the one-time subsidy for retirees who continue to work and pay social insurance. Illustration photo: Chi Hieu.

The new Social Insurance Law has higher adjustments for people who reach retirement age but continue to work and participate in social insurance.

Specifically, in case an employee is eligible for a pension but continues to pay social insurance, the subsidy is equal to twice the average salary used as the basis for social insurance payment for each year of payment higher than the prescribed number of years (from the time of reaching retirement age).

How to calculate lump sum benefits for retirees

To be able to calculate the one-time subsidy according to the provisions of the Social Insurance Law 2024, the Ministry of Labor, Invalids and Social Affairs has provided specific calculation formula instructions.

For example, a specific case to calculate the one-time pension benefit is as follows:

Mr. A. works under normal working conditions. By the time he reaches retirement age, he has 39 years of social insurance contributions. If Mr. A retires under the regime immediately upon reaching retirement age, he will have 4 years of excess social insurance contributions.

With 4 years of excess social insurance contributions, each year Mr. A will receive a one-time allowance of 0.5 months of average social insurance contribution salary. In this case, Mr. A's one-time allowance is: 4 years x 0.5 = 2 months of average social insurance contribution salary.

However, if Mr. A does not retire immediately and continues to work and pay social insurance for 3 more years before retiring, Mr. A will have paid social insurance for a total of 42 years. Therefore, in addition to his pension, Mr. A will also receive a one-time benefit as follows:

4 years of social insurance contributions are higher than 35 years before retirement age, each year is equal to 0.5 times the average salary used as the basis for social insurance contributions: 4 years x 0.5 = 2.0.

3 years of social insurance payment after retirement age, each year is equal to 2 times the average salary used as the basis for social insurance payment: 3 years x 2 = 6.

Thus, in this case, Mr. A. is entitled to a one-time pension upon retirement equal to 8 times the average salary used as the basis for social insurance contributions.

A labor expert said that increasing the one-time subsidy for retirees who continue to work and participate in social insurance will encourage workers, especially high-quality workers (experts, scientists , etc.) to have more motivation to continue working and contributing to society after meeting the retirement conditions.