Forms of receiving pensions in Vietnam under the Law on Social Insurance 2024 from July 1, 2025 that workers should note
Forms of receiving pensions in Vietnam under the Law on Social Insurance 2024 from July 1, 2025 that workers should note
Based on Article 93 of the Social Insurance Law 2024, there are three forms of pension receipt for workers participating in compulsory social insurance. To be specific:
(1) Through the beneficiary's account opened at a commercial bank, a branch of a foreign bank established and operating in Vietnam.
(2) Directly from the social insurance agency or a service organization authorized by the social insurance agency.
(3) Through the employer.
Meanwhile, in Article 114 Social Insurance Law 2024, there are two forms of pension receipt for workers participating in voluntary social insurance, specifically:
(1) Through the beneficiary's account opened at a commercial bank, a branch of a foreign bank established and operating in Vietnam.
(2) Directly from the social insurance agency or a service organization authorized by the social insurance agency.
* Note: These forms of pension receipt will be applied starting from July 1, 2025.
Forms of receiving pensions in Vietnam under the Law on Social Insurance 2024 from July 1, 2025 that workers should note (Internet image)
Average salary used as basis for calculation of social insurance premiums to calculate pension, lump-sum allowance in Vietnam
Based on Article 72 of the Social Insurance Law 2024, the average salary used as basis for calculation of social insurance premiums to calculate pension, lump-sum allowance in Vietnam is specified as follows:
(1) Workers subject to the salary policies prescribed by the State, having the entire period of social insurance contributions under these policies, calculate the average salary as the basis for social insurance contributions of the years before retirement as follows:
+ Started participating in social insurance before January 1, 1995, calculate the average salary of the last 5 years before retirement;
+ Started participating in social insurance from January 1, 1995, to December 31, 2000, calculate the average salary of the last 6 years before retirement;
+ Started participating in social insurance from January 1, 2001, to December 31, 2006, calculate the average salary of the last 8 years before retirement;
+ Started participating in social insurance from January 1, 2007, to December 31, 2015, calculate the average salary of the last 10 years before retirement;
+ Started participating in social insurance from January 1, 2016, to December 31, 2019, calculate the average salary of the last 15 years before retirement;
+ Started participating in social insurance from January 1, 2020, to December 31, 2024, calculate the average salary of the last 20 years before retirement;
+ Started participating in social insurance from January 1, 2025, onwards, calculate the average salary of the entire period of social insurance contributions.
(2) Workers having the entire period of social insurance contributions under the salary policies decided by the employer calculate the average salary of the entire period.
(3) Workers having periods of social insurance contributions under both the State-prescribed salary policies and the employer-decided salary policies calculate the average salary for the entire period, with the time under the State policies calculated as per (1).
(4) the Government of Vietnam specifies the detailed average salary as the basis for social insurance contributions in some special cases for employees under the State-prescribed salary policies.
Documents for Pension Application for compulsory Social Insurance Participants in Vietnam
Based on Article 77 of the Social Insurance Law 2024, the documents for a pension application for participants in compulsory social insurance are as follows:
(1) The application for a pension for those currently participating in compulsory social insurance includes:
- Social insurance book;
- The original or a copy of the document terminating the labor contract or the document terminating work or the application from the following entities:
(i) Workers going to work abroad under a contract as stipulated in the Law on Vietnamese Guest Workers, except where international treaties to which the Socialist Republic of Vietnam is a member provide otherwise;
(ii) Spouses not receiving salaries from the state budget accompanying officials on missions at foreign representative organizations of the Socialist Republic of Vietnam, receiving a living allowance policy;
(iii) Heads of business households with a business registration certificate, participating as prescribed by the Government of Vietnam;
(iv) Managers of enterprises, controllers, representatives of state capital shares, representatives of enterprise capital shares as stipulated by law; members of the Board of Directors, General Directors, Directors, Supervisory Board members, or controllers and other elected management positions of cooperatives, unions of cooperatives as prescribed by the Law on Cooperatives, not receiving salaries.
(2) The application for a pension for those reserving the time of compulsory social insurance contributions includes:
- Social insurance book;
- The application from individuals reserving the time of compulsory social insurance contributions.
(3) In cases stipulated in Article 65 of the Social Insurance Law 2024, apart from the documents specified in (1), it should also include:
- The assessment record of the Health Assessment Council on the reduction of working capacity;
- Or a copy of the disability certificate with detailed conclusions from the Health Assessment Council on the percentage reduction in working capacity.
(4) In cases stipulated in point d clause 1 and point c clause 2 Article 64 of the Social Insurance Law 2024, apart from the documents specified in (1), it should also include a copy of the certificate of HIV infection due to occupational accidents.
>> Social Insurance Law 2024 will take effect in Vietnam from July 1, 2025.
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