The Law on Social Insurance 2024, No. 41/2024/QH15, effective from July 1, 2025, has made changes to the conditions for receiving a lump-sum allowance upon retirement. According to the new law, male workers with more than 35 years of social insurance contributions and female workers with more than 30 years of contributions will, upon retirement, be entitled to receive a lump-sum allowance in addition to their retirement pension.
From January 1, 2025, female workers with over 30 years of social insurance contributions will be eligible for a lump-sum allowance upon retirement, in addition to their retirement pension.
Article 58 of the Law on Social Insurance 2014, No. 58/2014/QH13, previously stipulated that to be eligible for a lump-sum allowance upon retirement, workers must have contributed to social insurance for a period exceeding the number of years corresponding to a 75% retirement pension rate. The new law, however, has adjusted this criterion.
In summary, from July 1, 2025, the conditions for receiving a lump-sum allowance upon retirement are as follows:
– For male workers: Contribute to social insurance for more than 35 years.
– For female workers: Contribute to social insurance for more than 30 years.
The allowance amount for each year of contribution exceeding the above-mentioned periods shall be equal to 0.5 times the average wage on which social insurance contributions are based, for each year of excess contribution up to retirement age.
In cases where a worker has already met the retirement eligibility criteria but continues to contribute to social insurance, the allowance amount shall be equal to twice the average wage on which social insurance contributions are based, for each year of contribution exceeding the prescribed number of years, from the time the worker reaches the retirement age specified by law until retirement.
