Official reduction of minimum social insurance contribution period to be eligible to receive pensions in Vietnam from July 1, 2025 under the Law on Social Insurance 2024
Official reduction of minimum social insurance contribution period to be eligible to receive pensions in Vietnam from July 1, 2025 under the Law on Social Insurance 2024
Article 98 of the Law on Social Insurance 2024 stipulates that participants in voluntary social insurance are entitled to a retirement pension upon reaching retirement age according to Clause 2, Article 169 of the Labor Code 2019 and having contributed social insurance for at least 15 years or more.
>> Thus, from July 1, 2025, the minimum period of voluntary social insurance contribution to receive a retirement pension will be reduced to at least 15 years instead of the current 20 years.
| Article 73 of the Law on Social Insurance 2014, amended by Point c, Clause 1, Article 219 of the Labor Code 2019, stipulates the conditions for retirement pension for participants in voluntary social insurance as follows: (1) Reaching retirement age according to Clause 2, Article 169 of the Labor Code 2019; (2) Having contributed social insurance for at least 20 years or more. |
Simultaneously, Article 64 of the Law on Social Insurance 2024 also stipulates the subjects and conditions for receiving retirement pensions as follows:
(1) Persons specified at Points a, b, c, g, h, i, k, l, m, and n, Clause 1, and Clause 2, Article 2 of the Law on Social Insurance 2024 who terminate employment with a compulsory social insurance contribution period of at least 15 years or more are entitled to a retirement pension if they fall into one of the following cases:
(i) Reaching retirement age according to Clause 2, Article 169 of the Labor Code 2019;
(ii) Reaching retirement age according to Clause 3, Article 169 of the Labor Code 2019 and having a total period of compulsory social insurance contribution of at least 15 years or more when working in heavy, hazardous occupations or particularly heavy, hazardous, dangerous occupations as listed by the Minister of Labor, Invalids and Social Affairs, or working in areas with particularly difficult socio-economic conditions including the period of working in areas with a regional allowance coefficient of 0.7 or more before January 1, 2021;
(iii) Being up to 10 years younger than the age stipulated in Clause 2, Article 169 of the Labor Code 2019 and having worked in underground coal mining for at least 15 years or more according to the regulations of the Government of Vietnam;
(iv) Persons infected with HIV/AIDS due to occupational hazards during the execution of assigned duties.
(2) Persons specified at Points d, đ, and e, Clause 1, Article 2 of the Law on Social Insurance 2024 who terminate employment with a compulsory social insurance contribution period of at least 15 years or more are entitled to a retirement pension if they fall into one of the following cases:
(i) Being up to 5 years younger than the age stipulated in Clause 2, Article 169 of the Labor Code 2019, unless otherwise stipulated by the Law on People’s Army Officers, the Law on People’s Public Security, the Cipher Law, the Law on Professional Soldiers, Defense Workers, and Public Employees;
(ii) Being up to 10 years younger than the age stipulated in Clause 2, Article 169 of the Labor Code 2019 and having a total period of compulsory social insurance contribution of at least 15 years or more when working in heavy, hazardous occupations or particularly heavy, hazardous, dangerous occupations as listed by the Minister of Labor, Invalids and Social Affairs, or working in areas with particularly difficult socio-economic conditions including the period of working in areas with a regional allowance coefficient of 0.7 or more before January 1, 2021;
(iii) Persons infected with HIV/AIDS due to occupational hazards during the execution of assigned duties.
(3) The Government of Vietnam stipulates the enjoyment of retirement pensions for cases where the date and month of birth cannot be determined, missing files, and other special cases.
>> Thus, from July 1, 2025, the minimum period of compulsory social insurance contribution to be entitled to a retirement pension will be reduced to at least 15 years instead of the current 20 years (Article 55 of the Law on Social Insurance 2014 as amended by Point b, Clause 1, Article 219 of the Labor Code 2019).
From July 1, 2025, the official reduction of the minimum social insurance contribution period to receive a retirement pension will take effect. Specifically, the minimum social insurance contribution period will be reduced from at least 20 years to at least 15 years.
Thus, if workers participate in compulsory social insurance (meet the conditions in Article 98 of the Law on Social Insurance 2024); or voluntary social insurance (meet the conditions in Article 64 of the Law on Social Insurance 2024) and have contributed social insurance for at least 15 years, they will be entitled to a retirement pension instead of 20 years as required currently.
* The above regulation does not apply to individuals receiving a retirement pension due to reduced labor capacity (Article 65 of the Law on Social Insurance 2024).
Official reduction of minimum social insurance contribution period to be eligible to receive pensions in Vietnam from July 1, 2025 under the Law on Social Insurance 2024 (Internet image)
What are grounds for adjustment of pensions in Vietnam from July 1, 2025?
According to Article 67 of the Law on Social Insurance 2024, the regulation is as follows:
Adjustment of Retirement Pension
1. Retirement pensions are adjusted based on the increase in the consumer price index, in line with the state budget's ability and social insurance fund.
2. The increase in retirement pensions should be reasonably adjusted for individuals with low retirement pensions who retired before 1995, ensuring the narrowing of the retirement pension gap between retirees of different periods.
3. The Government of Vietnam regulates the timing, subjects, and pension adjustment levels as specified in this Article.
Retirement pensions will be adjusted based on the increase in the consumer price index compatible with the state budget's capability and the social insurance fund.
Note: The adjustment of the increase in retirement pensions should be reasonably done for individuals with low retirement pensions who retired before 1995, ensuring the narrowing of the retirement pension gap between retirees of different periods.
When Does the Law on Social Insurance 2024 Take Effect in Vietnam?
According to Article 140 of the Law on Social Insurance 2024, the regulation is as follows:
Effective Date
1. This Law takes effect from July 1, 2025.
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The Law on Social Insurance 2024 takes effect in Vietnam from July 1, 2025.
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