Official: Law on Social Insurance 2024 is available in Vietnam

Official: Law on Social Insurance 2024 is available in Vietnam (Image from the internet)

Official: Law on Social Insurance 2024 is available in Vietnam

On June 29, 2024, Hanoi passed the Law on Social Insurance 2024, which comes into force in Vietnam from July 1, 2025.

The Law on Social Insurance 2024 stipulates the rights and responsibilities of agencies, organizations, and individuals regarding social insurance and the implementation of social insurance; social retirement benefits; registration and management of social insurance collection and payment; mandatory social insurance policies, voluntary social insurance; social insurance fund; supplementary retirement insurance; complaints, denunciations, and handling violations related to social insurance; and state management of social insurance.

Transitional provisions in the Law on Social Insurance 2024 are as follows:

- Persons currently receiving loss of working capacity allowances, occupational accident allowances, occupational disease allowances, monthly survivor benefits, monthly allowances for retired commune, ward, and commune-level town officials, monthly allowances for rubber workers, and those receiving monthly allowances after the end of the loss of working capacity allowance period will have their allowances adjusted in accordance with the regulations of the Government of Vietnam.

- Persons suspended or temporarily stopped from receiving social insurance due to serving a prison sentence but not receiving a suspended sentence before January 1, 2016, will follow the Law on Social Insurances in effect at the time of suspension or temporary stoppage.

- Workers who have worked and participated in social insurance before January 1, 1995, in areas with regional allowances, and those who have paid social insurance including regional allowances before January 1, 2007, will receive a one-time regional allowance when resolving retirement pension or one-time social insurance or death benefits policies.

- Persons currently receiving pensions, loss of working capacity allowances, monthly occupational accident allowances, and monthly occupational disease allowances concurrently with monthly regional allowances at their places of permanent residence with regional allowances will continue receiving the regional allowances as currently entitled. When changing the place of permanent residence, the entitlement to regional allowances will follow the regulations of the Government of Vietnam.

- From the effective date of the Law on Social Insurance 2024, workers on sick leave due to diseases listed for long-term treatment by the Minister of Health or on maternity leave under the Law on Social Insurance 2014 will continue until the expiration of the approved period.

- Persons currently receiving loss of working capacity allowances, monthly allowances after the end of the loss of working capacity allowance period, monthly allowances for rubber workers, monthly allowances for retired commune, ward, and commune-level town officials, when deceased, their relatives will be entitled to death benefits policies as regulated by the Government of Vietnam.

- Workers with employment periods in the state sector before January 1, 1995, will have these periods counted for social insurance benefits as regulated by the Government of Vietnam.

- Annually, the state transfers a budgetary amount to the social insurance fund to ensure the payment of full pensions and social insurance allowances to pensioners and social insurance beneficiaries before January 1, 1995.

- Persons participating in voluntary social insurance before January 1, 2021, and having 20 years or more of voluntary social insurance contributions are entitled to a pension at 60 years old for men and 55 years old for women, except for workers wishing to retire under Article 98 of the Law on Social Insurance 2024.

- Workers with 15 years or more of social insurance contributions and a written confirmation from the social insurance agency regarding age eligibility for retirement benefits under Decree 12/CP dated January 26, 1995, as amended and supplemented under Decree 01/2003/ND-CP dated January 9, 2003, of the Government of Vietnam, are entitled to a pension at 60 years old for men and 55 years old for women.

Commune-level officials under Decree 09/1998/ND-CP dated January 23, 1998, of the Government of Vietnam, who have a decision or certification waiting for age eligibility for monthly benefits from the social insurance agency, will receive monthly benefits at 55 years old for men and 50 years old for women.

- Participants specified in points a, b, c, d, e, g, and i Article 2 Law on Social Insurance 2024, who have participated in social insurance before the Law on Social Insurance 2024 takes effect and have 20 years or more of mandatory social insurance contributions, will receive a monthly pension not lower than the reference level.

- Unpaid compulsary social insurance and unemployment insurance contributions by employers as required by the Law on Social Insurance 2014 and Employment Law 2013 that are still unpaid or not fully paid by June 30, 2025, will be handled in accordance with the regulations on late payment and evasion under the Law on Social Insurance 2024.

- Until the statutory pay rate is abolished, the reference level stipulated in the Law on Social Insurance 2024 is equal to the statutory pay rate. At the time the statutory pay rate is abolished, the reference level will not be lower than the statutory pay rate.

- Authorization documents for receiving pensions, social insurance allowances, and other policies under the Law on Social Insurance 2014 will continue to be valid until June 30, 2026.

More details can be found in Law on Social Insurance 2024 which comes into force in Vietnam from July 1, 2025.

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