The Social Insurance Law of 2024 will come into effect on July 1st, introducing significant changes to retirement policies.
Along with a monthly pension (for those who meet the eligibility requirements), subscribers to social insurance will be entitled to additional benefits.
One such benefit is pension adjustment; unlike a fixed amount at retirement, the pension will be periodically increased by the government to ensure its value is maintained.
For male workers with over 35 years of social insurance contributions and female workers with over 30 years, there is an additional one-time allowance upon retirement, on top of their monthly pension (with a maximum entitlement of 75%).
By persistently contributing to social insurance, workers can look forward to multiple benefits besides their pension.
According to the 2024 Law, the one-time retirement allowance is calculated based on two scenarios. Firstly, for those who meet the pension eligibility criteria and complete the retirement benefit procedures, the one-time allowance is granted. This allowance is calculated as 0.5 times the average wage (used as the basis for social insurance contributions) for each year of contribution beyond the required period. This calculation remains unchanged from the 2014 Law.
Secondly, for workers who meet the pension eligibility but choose to continue contributing to social insurance beyond the retirement age, the one-time allowance is significantly higher. For each additional year of contribution, they will receive an allowance equivalent to twice the average wage (used as the basis for social insurance contributions), which is four times higher than what was stipulated in the 2014 Law.
Moreover, retirees are entitled to free health insurance cards from the commencement of their pension until their passing, with a high level of coverage. The health insurance benefit for pension recipients stands at 95%.
In addition to these benefits, the dependents of pension recipients are also entitled to survivor benefits in the unfortunate event of the pensioner’s death during the period of monthly pension receipt. Survivor benefits include a funeral allowance equivalent to ten times the basic wage of the month in which the pensioner passes away, along with monthly or one-time survivor allowances.
“Important Update: Changes to Health Insurance Contributions Starting July 2025”
“The 2024 Health Insurance Law introduces a significant change in the way health insurance contributions are calculated. From July 1, 2025, instead of basing contributions on the current salary base, the government will utilize a reference level to determine health insurance premiums. This marks a shift in the existing structure and could have implications for individuals and businesses alike.”
“Suspended Pension Benefits: Effective July 1st”
The Social Insurance Law of 2024, effective from July 1st, stipulates certain scenarios where individuals receiving retirement pensions may face a suspension of their benefits.
Breaking News: Pre-July 1st Retirement Benefits – A Golden Opportunity for Early Retirees!
As of July 1st, 2025, a series of preferential policies will be implemented for officers and civil servants with 20 years of service who have contributed to the compulsory social insurance scheme. These individuals will be entitled to a range of benefits if they choose to retire early.
3 Groups Who Will No Longer Receive Pension and Social Insurance Benefits From July 1st: What You Need to Know
The new Social Insurance Law, effective from July 1, 2025, stipulates the suspension of pension and monthly social insurance benefits for individuals who are found to have illegally left the country, been declared missing, or failed to verify their personal information.
What Income Brackets are Subject to Social Insurance Contributions from July 2025?
The minimum salary used as a basis for compulsory social insurance contributions shall be equal to the reference level, and the maximum shall be 20 times the reference level at the time of payment.
