New Social Insurance Law for 2024: Enhancing Benefits and Protecting Workers’ Rights
Mr. Pham Truong Giang, Director of Social Insurance (Ministry of Labour, Invalids, and Social Affairs), shared that the 2024 Social Insurance Law always aims to protect and enhance benefits, ensuring that workers can enjoy retirement pensions instead of opting for one-time social insurance payments. The Law also respects the rights of workers.
Before the new Law takes effect (from July 1, 2025), the one-time social insurance regime will continue as per the 2014 Social Insurance Law.
For those participating in social insurance from July 1, 2025, the new Social Insurance Law still allows for one-time payments in certain cases.
Those who join the social insurance program from July 1, 2025, can opt for a one-time payment in the following cases: Reaching retirement age without having contributed for 15 years; emigrating to another country; suffering from critical illnesses like cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS; having an assessed reduction in working capacity of 81% or more, or being severely disabled.
Additionally, workers with insurance contributions before the effective date of this Law who, after 12 months, are no longer subject to mandatory social insurance participation and have contributed for less than 20 years, are also eligible.
Military and police officers, as well as other specified roles, who are discharged, retired, or relieved of their duties and are not subject to mandatory social insurance participation, nor do they meet the conditions for a retirement pension, are eligible for a one-time payment.
Foreign workers in Vietnam who were subject to mandatory social insurance participation and have ceased participation can also request a one-time benefit.
The new Social Insurance Law also stipulates that if workers choose to preserve their benefits for a retirement pension instead of a one-time payment, they can access monthly allowances before the age of 75 and enjoy health insurance covered by the state budget during this period. They will also be eligible for other benefits like credit access.
According to labor and wage experts, the adjustments in the new Social Insurance Law regarding one-time withdrawals safeguard the interests of those currently participating under the old regulations. In the long run, new participants will only receive one-time payments in special cases.
This contributes to increasing the number of people remaining in the system, enjoying the benefits accrued from their social insurance contributions, and reducing future burdens on society and the state budget.
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The Social Insurance Law of 2024, specifically according to Article 67 and Clause 2 of Article 99, stipulates that from July 1, 2025, there will be a continuation of pension adjustments for employees.
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Under the amended Social Insurance Law, effective July 1, 2025, male workers with over 35 years of social insurance contributions and female workers with over 30 years will be entitled to a one-time allowance calculated using a new method.
Why Not Adjust the Average Wage for Pension Calculation in the Amended Social Insurance Law?
“Calculating the average salary for social insurance contributions is pivotal in determining pension formulas, directly impacting the benefits of participants and the equilibrium of the social insurance fund. This intricate process involves a meticulous consideration of various factors to ensure equitable outcomes for all stakeholders involved.”
