Regarding social insurance contributions, the current Law on Social Insurance of 2014 (still in force) stipulates that for employees under the state-regulated salary scheme, the monthly salary for social insurance contributions includes the salary according to rank, level, military rank, and allowances for positions, seniority beyond the frame, and professional seniority (if any). For non-specialized employees in communes, wards, and towns, the monthly salary for social insurance contributions is based on the basic salary level.
For employees under the employer-determined salary scheme, the monthly salary for social insurance contributions includes the salary, salary allowances, and other supplements as stipulated by labor laws.
The mandatory social insurance contribution for employees under the employer-determined salary scheme is based on the monthly salary.
To align with Resolution 27/2018 of the 12th Central Executive Committee, the Law on Social Insurance of 2024 (effective from July 1, 2025) has made adjustments.
Accordingly, for employees under the state-regulated salary scheme, the basis for social insurance contributions includes the monthly salary according to position, title, rank, level, military rank, and allowances for positions, seniority beyond the frame, professional seniority, and salary retention coefficient (if any).
For employees under the employer-determined salary scheme, the basis for mandatory social insurance contributions is the monthly salary, comprising the salary according to the job or title, salary allowances, and other regularly and stably paid supplements as agreed upon in each salary payment period.
Notably, Article 74 of the Law on Social Insurance of 2024 clearly stipulates the case where the state applies the salary scheme according to job positions, titles, and leadership positions, replacing the current salary system.
When implementing the new salary system, the Government will report to the National Assembly for consideration and decision-making regarding adjustments to the basis for mandatory social insurance contributions, the calculation method for the average salary as the basis for retirement pensions and social insurance benefits, adjustments to the salary basis for mandatory social insurance contributions, and other necessary contents.
“Retirement in 2025: How Much Monthly Pension with 22 Years of Social Insurance Contributions?”
With the recent changes to the Social Insurance Law (Article 64), effective July 1, 2025, employees reaching retirement age with a minimum of 15 years of mandatory social insurance contributions are now entitled to receive a retirement pension upon leaving their employment.
The Rise in Pensioners: Streamlining the System
Over 27,200 people have been granted retirement benefits in the first four months of the year, a staggering increase of nearly 95.5% compared to the same period last year. This surge is attributed to the government’s organizational restructuring policies, which have had a significant impact on the lives of many.
What Benefits Do Young Officers and Civil Servants Receive After Being Made Redundant?
The young officers and civil servants who were laid off will be provided with a financial allowance to cover the costs of vocational training for up to six months’ worth of salary.
Maximizing Your Pension: Understanding Early Retirement Benefits
To receive the maximum pension of 75%, male workers must have 35 years of social insurance contributions, while female workers need to have 30 years of social insurance contributions.
“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.
