Social Insurance in Vietnam: Essential Information for Workers
On April 17, the Vietnam Social Security (VSS) held an online conference to discuss policies related to social insurance, health insurance, and unemployment insurance. Retirement benefits were among the most frequently raised topics.
According to VSS, workers are eligible for pension benefits upon reaching the retirement age and contributing to social insurance for at least 20 years.
Retirement Age
As per the 2019 Labor Code and Government Decree No. 135/2020/ND-CP, the retirement age for workers in normal working conditions is 60 years and 3 months for males and 55 years and 4 months for females, effective January 1, 2021.
The retirement age will gradually increase by 3 months annually for male workers until it reaches 62 years in 2028. For female workers, it will increase by 4 months annually until it reaches 60 years in 2035. In 2024, the retirement age will be 61 years for male workers and 56 years and 4 months for female workers.
Social Insurance Contribution Period
To qualify for pension benefits, workers must have contributed to social insurance for at least 20 years upon reaching the retirement age.
Pension Calculation
The monthly pension amount is calculated by multiplying the monthly pension ratio with the average monthly salary used as the basis for social insurance contributions.
Pension Ratio
For male workers retiring from 2022 onwards, the pension ratio is 45% for 20 years of contributions. This increases by 2% for each additional year of contributions, with a maximum of 75%.
Factors Affecting Pension Benefits
The calculation of pension benefits and monthly pension amounts depends on various factors, including:
Total duration of social insurance contributions
Monthly income used as the basis for social insurance contributions throughout the contribution period
Age
Retirement date
Government-regulated consumer price index
Options for Insufficient Contribution Periods
Workers who reach the retirement age but have contributed less than 20 years to social insurance can opt for voluntary social insurance payments to meet the 20-year requirement and qualify for pension benefits.
Various payment options are available for voluntary social insurance contributions, including monthly, quarterly, semi-annual, annual, and one-time payments for up to 5 years.
Individuals who have met the age requirement for pension benefits but have less than 10 years of social insurance contributions can make a lump-sum payment to cover the remaining period and reach the 20-year threshold.
VSS Performance
The Vietnam Social Security ensures the timely and accurate provision of benefits to its members. In March 2024 alone, approximately 5,200 pension and social insurance benefit claims were processed.
Other Benefits
In addition to retirement benefits, social insurance policies also cover maternity leave, unemployment benefits, social insurance account closures, health insurance card validity, and healthcare coverage under health insurance.
VSS Initiatives
During the conference, VSS experts provided comprehensive answers to questions from organizations and individuals. They also discussed ongoing efforts to enhance the efficiency and accessibility of social insurance, health insurance, and unemployment insurance benefits.
Statistics
As of March 2024, the number of social insurance participants reached nearly 17.4 million, a 1.6% increase. This includes over 15.9 million mandatory social insurance participants and more than 1.4 million voluntary social insurance participants. Approximately 14.2 million people are enrolled in unemployment insurance, a 1.67% increase. The number of health insurance participants has reached 90.2 million, a 0.28% increase.
In March 2024, 806,793 claims for sickness, maternity, recuperation, and rehabilitation were processed. The VSS also collaborated with the Ministry of Labor, Invalids, and Social Affairs to disburse unemployment benefits to 59,355 individuals and facilitated over 15 million inpatient and outpatient healthcare visits under health insurance.
