From May 2024: Will pensions, social insurance benefits, and monthly allowances adjusted in Vietnam?
From May 2024: Will pensions, social insurance benefits, and monthly allowances adjusted in Vietnam?
The Government of Vietnam has just issued Resolution 01/NQ-CP 2024 on the primary tasks and solutions for the implementation of the socio-economic development plan and the state budget estimate for 2024.
According to the content in Appendix IV, specific tasks for different sectors and fields in 2024 (attached with Resolution 01/NQ-CP 2024), the government assigned the Ministry of Labor, War Invalids and Social Affairs to take the lead in implementing the decree adjusting pensions, social insurance benefits, and monthly allowances to be completed in May 2024.
According to the above regulation, it is expected that a decree adjusting pensions, social insurance benefits, and monthly allowances will be issued in May. As for the adjustment levels, specifics will only be known once the decree is issued and comes into effect regarding the adjustments and the time when the pension increase will apply.
In May 2024, Will pensions, social insurance benefits, and monthly allowances be officially adjusted in Vietnam?
What are the current conditions to receive pensions in Vietnam?
Based on the provisions in Article 54 of the Social Insurance Law 2014 amended by point a clause 1 Article 219 of the Labor Code 2019:
Conditions for receiving pensions
1. Workers specified in points a, b, c, d, g, h, and i clause 1 Article 2 of this Law, except as provided in clause 3 of this Article, upon retirement must have at least 20 years of social insurance contributions to be eligible for pensions if they fall into one of the following cases:
a) Reach the age as stipulated in clause 2 Article 169 of the Labor Code;
b) Reach the age as stipulated in clause 3 Article 169 of the Labor Code and have at least 15 years of doing heavy, toxic, dangerous work or particularly heavy, toxic, dangerous work as specified by the Ministry of Labor, War Invalids and Social Affairs, or have at least 15 years working in areas with exceptionally difficult socio-economic conditions, including periods with regional allowance coefficient of 0.7 or higher before January 01, 2021;
c) Workers under the retirement age by up to 10 years compared to the retirement age prescribed in clause 2 Article 169 of the Labor Code and have at least 15 years of coal mining work in underground mines;
d) Those infected with HIV due to occupational accidents while performing their assigned tasks.
2. Workers specified in points đ and e clause 1 Article 2 of this Law upon retirement must have at least 20 years of social insurance contributions to be eligible for pensions if they meet one of the following conditions:
a) Being up to 05 years younger than the retirement age stipulated in clause 2 Article 169 of the Labor Code, except otherwise specified in the Law on People's Army Officers of Vietnam, the Public Security Law, the Code of Cryptography, the Law on Professional Soldiers and National Defense Workers and Public Employees;
b) Being up to 05 years younger than the retirement age stipulated in clause 3 Article 169 of the Labor Code and having at least 15 years of doing heavy, toxic, dangerous work or particularly heavy, toxic, dangerous work as prescribed by the Ministry of Labor, War Invalids and Social Affairs, or having at least 15 years working in areas with exceptionally difficult socio-economic conditions, including periods with regional allowance coefficient of 0.7 or higher before January 01, 2021;
c) Those infected with HIV due to occupational accidents while performing their assigned tasks.
3. Female workers who are officials at the commune level or who are non-specialized workers in communes, wards, or commune-level towns participating in social insurance, upon retirement must have from 15 years to less than 20 years of social insurance contributions and meet the retirement age stipulated in clause 2 Article 169 of the Labor Code to be eligible for pensions.
4. Conditions for pension age for some special cases are regulated by the Government of Vietnam.
Thus, currently, to be eligible for pensions, individuals must meet the above-stated conditions.
How long must social insurance be paid to receive a pension in Vietnam?
Based on the provisions in Articles 54, 55, and 73 of the Social Insurance Law 2014 (amended by clause 1 Article 219 of the Labor Code 2019), it is clear that to receive a pension, social insurance participants (including mandatory social insurance and voluntary social insurance) must meet two conditions regarding retirement age and the duration of social insurance participation.
Specifically, for the condition on social insurance participation duration:
- For those participating in mandatory social insurance: At least 20 years of social insurance contributions, except for female workers who are specialized or non-specialized workers in communes, wards, and commune-level towns, which require at least 15 years of social insurance contributions.
- For those participating in voluntary social insurance: At least 20 years of social insurance contributions.
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