Article 67 of the Social Insurance Law clearly states that pension adjustments are based on the increase in the consumer price index, taking into account the state budget and social insurance fund capabilities.
Concurrently, it mandates a reasonable increase in pensions for those with low pensions and those who retired before 1995, aiming to narrow the pension gap between retirees from different periods. The timing, beneficiaries, and adjustment rates are determined by the government.
According to Clause 2, Article 99 of the 2024 Social Insurance Law, pension adjustments for participants in voluntary social insurance shall also be made in accordance with Article 67.
As of July 1, 2025, pensions will be adjusted based on the increase in the consumer price index, taking into account the state budget and the social insurance fund. However, the specific adjustment rates and timing will be decided by the government.
Previously, Decree 75/2024/ND-CP stipulated a 15% increase in pensions, social insurance allowances, and monthly allowances from July 1, 2024, compared to the levels in June 2024.
For those receiving pensions, social insurance allowances, or monthly allowances, if the amount after the 15% increase is less than VND 3,500,000 per month, the following additional adjustments will be made:
– An extra VND 300,000 per person per month for those with an amount of less than VND 3,200,000 per person per month;
– An increase to VND 3,500,000 per person per month for those with an amount between VND 3,200,000 and less than VND 3,500,000 per person per month.
The adjusted pension, social insurance allowance, and monthly allowance are the basis for future adjustments.
Provisions on Monthly Pension Amounts for Compulsory and Voluntary Social Insurance Participants
For Compulsory Social Insurance Participants
According to Article 66 of the 2024 Social Insurance Law, the monthly pension amount for female workers shall be 45% of the average salary on which social insurance contributions are based, corresponding to 15 years of social insurance contributions. For each additional year of contribution, 2% shall be added, up to a maximum of 75%.
For male workers, the monthly pension amount shall be 45% of the average salary on which social insurance contributions are based, corresponding to 20 years of social insurance contributions. For each additional year of contribution, 2% shall be added, up to a maximum of 75%.
If a male worker has a social insurance contribution period of between 15 and less than 20 years, the monthly pension amount shall be 40% of the average salary on which social insurance contributions are based, corresponding to 15 years of contributions. For each additional year of contribution, 1% shall be added.
For workers in special and specific professions and jobs in the people’s armed forces, the monthly pension amount shall be determined by the government. The funding source is the state budget.
For those who retire early, the monthly pension amount shall be calculated as per Article 66 of the 2024 Social Insurance Law, but for each year of early retirement, 2% shall be reduced. If the early retirement period is less than 6 months, the percentage of pension entitlement shall not be reduced; if it is 6 months or more but less than 12 months, 1% shall be reduced.
For workers who meet the retirement age requirements and have a social insurance contribution period in accordance with international treaties to which the Socialist Republic of Vietnam is a member, but have a social insurance contribution period in Vietnam of less than 15 years, each year of contribution during this period shall be calculated as 2.25% of the average salary on which social insurance contributions are based.
For Voluntary Social Insurance Participants
According to Article 99 of the Social Insurance Law, the monthly pension amount for female workers shall be 45% of the average income on which social insurance contributions are based, corresponding to 15 years of social insurance contributions. For each additional year of contribution, 2% shall be added, up to a maximum of 75%.
For male workers, the monthly pension amount shall be 45% of the average income on which social insurance contributions are based, corresponding to 20 years of social insurance contributions. For each additional year of contribution, 2% shall be added, up to a maximum of 75%.
In the case of male workers with a social insurance contribution period of between 15 and less than 20 years, or workers who meet the retirement age requirements and have a social insurance contribution period in accordance with international treaties to which the Socialist Republic of Vietnam is a member but have a social insurance contribution period in Vietnam of less than 15 years, the monthly pension amount shall be calculated in the same way as for compulsory social insurance participants.
How many years do workers have to contribute to voluntary social insurance to receive a pension in 2024?
According to Article 3 of the 2014 Social Insurance Law, voluntary social insurance is a type of insurance organized by the State. Participants in voluntary social insurance have the right to choose the level and method of insurance payment that is suitable for themselves.
How to receive sliding social insurance money in 2024 after withdrawing social insurance once?
Currency depreciation is an important consideration for workers when withdrawing social insurance (SI) funds in one lump sum. Depending on the timing of the SI withdrawal process, the exchange rate at the time of receiving the funds will vary.
What does the Ministry of Labor, Invalids and Social Affairs say about the proposal to reduce the retirement age for certain specialized professions?
The characteristics, types of work, and health of workers have been taken into account when adjusting the retirement age.
Resolutely implementing solutions to reduce late insurance payments from the beginning of the year
As the number of participants in social insurance, health insurance, and unemployment insurance grows, the Social Insurance Agency is also intensifying efforts to collect contributions and reduce the amount of late payments by 2024…
CPI Surges 3.98% in February YoY
According to the latest statistics from the General Statistics Office, the demand for purchasing goods and services by the people has increased significantly during the Lunar New Year holiday. The price of rice in the domestic market has also risen in line with the price of rice for export. Additionally, the prices of gasoline and gas have increased following the global fuel prices, which are the main factors contributing to the rise of the Consumer Price Index (CPI) in February 2024.
