Eligibility for a Fourfold Retirement Allowance Increase
According to Article 68, Clause 1 of the 2024 Social Insurance Law, male workers with over 35 years of social insurance contributions and female workers with over 30 years are entitled to a one-time retirement allowance in addition to their monthly pension.
From July 1st, the one-time retirement allowance can be up to four times higher than previous regulations. Photo: illustration.
The allowance is categorized into two specific cases, as outlined in Article 68, Clause 2 of the 2024 Social Insurance Law:
Case 1: Eligible retirees who complete pension procedures receive an allowance calculated at 0.5 times the average wage basis for each year of contributions exceeding the limits in Clause 1, Article 68, until the legal retirement age. This calculation remains consistent with the 2014 Social Insurance Law.
Case 2: Retirees who continue contributing beyond the retirement age receive a higher allowance, with each additional year earning twice the average wage basis. This is a fourfold increase compared to the 2014 Social Insurance Law.
The new regulations not only enhance retirement income but also encourage continued social insurance participation, especially post-retirement.
Two Groups Receiving Pension Increases
Effective July 1st, two groups will receive pension increases under the new regulations.
Article 67 of the 2024 Social Insurance Law stipulates pension adjustments based on consumer price index increases, aligned with state budget and social insurance fund capabilities.
Adjustments aim to reduce pension disparities between retirees from different periods, particularly targeting those with lower pensions who retired before 1995. The government determines adjustment timing, eligibility, and amounts.
From July 1st, retirees with low pensions who retired before 1995 will receive adjustments to narrow pension gaps across retirement periods.
Retirement Pensions: Ever-Adjusted, Ever-Secure.
There are instances when the government chooses not to increase the base salary, yet proceeds to make adjustments to raise retirement pensions, as confirmed by the Ministry of Labour, Invalids and Social Affairs.
The Entitled Will Continue to Receive Pension Increases from July 1, 2025
As of July 1, 2025, individuals receiving lower pension amounts and those who retired before 1995 will be eligible for a pension increase. This adjustment aims to provide financial relief and support to those who need it most. The details of this pension increase are yet to be announced, but it is expected to make a significant difference in the lives of many retirees. This initiative demonstrates a commitment to ensuring that all retirees can maintain a comfortable standard of living.
Retirement Pensions Have Seen a Seven-Fold Increase Over the Last Decade
According to the Ministry of Labour, Invalids and Social Affairs, over the past decade (2013-2023), the government has adjusted retirement pensions seven times, with an average increase of over 8.43% each time. This is significantly higher than the consumer price index increase for the same period.
Will Workers Continue to Receive Pension Increases from July 2025?
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.
