Law on Social Insurance 2014 is effective from January 01, 2016. However, some provisions of this Law will officially take effect in 2018. The regulations on paying social insurance premiums and receiving social insurance benefits in Vietnam are as follows:
Article table of contents
Regarding payment of social insurance premiums:
- From January 1, 2018, onward, the regulation stipulates that the monthly salary used as the basis for mandatory payment of social insurance premiums will include the salary, salary allowance, and other additional amounts as specified by labor law, recorded in the labor contract, and paid regularly in each pay period;
- From January 1, 2018, the State shall fund voluntary social insurance premiums for voluntary social insurance participants. To be specific:
+ 30% of the premium for voluntary social insurance participants from poor households;
+ 25% of the premium for voluntary social insurance participants from near-poor households;
+ 10% for other subjects.
Regarding the receipt of social insurance benefits:
From January 1, 2018, onward, the regulation on the age condition to receive a pension for early retirees will increase compared to the Law on Social Insurance 2006. Employees who quit their jobs and have at least 20 years of payment of social insurance premiums will be entitled to a pension at a lower rate if their reduced working capacity is from 61% to 80%, provided they meet the following age conditions:
| Year of Retirement to Receive a Pension | Age required for Male | Age required for Female |
| 2018 | 53 years old | 48 years old |
| 2019 | 54 years old | 49 years old |
| From 2020 onward | 55 years old | 50 years old |
Amendments to the calculation of the pension rate by gradually increasing the number of years for payment of social insurance premiums:
For male employees, to be entitled to 45% of the average monthly salary, from 2018 onward, the number of contribution years will increase by 1 year each year until reaching 20 years of payment of social insurance premiums corresponding to 45%, specifically:
| 2018 | 16 years |
| 2019 | 17 years |
| 2020 | 18 years |
| 2021 | 19 years |
| From 2022 onward | 20 years |
For female employees retiring from 2018 onward, the regulation stipulates 15 years of payment of social insurance premiums corresponding to 45%.
After that, both male and female employees will be entitled to an additional 2% for each year of payment of social insurance premiums, but the maximum pension rate is limited to 75%.
In the case of early retirement, the pension rate must be reduced due to early retirement: the reduction rate is 2% for each year of early retirement (for both men and women); when calculating the pension rate for cases of retirement age with odd months up to 6 months, the reduction rate is 1%, and for more than 6 months, there will be no reduction rate. The pension rate will be calculated for cases where the period for payment of social insurance premiums has odd months from 01 to 06 months, counted as half a year; from 07 to 11 months, counted as one year.
Source: Social Security
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