According to the leader of the Department of Labor, Invalids and Social Affairs of Hoa Binh province, the revised Law on Social Insurance 2024 has the following new points on pension policy:
Pay one time for the remaining months to receive pension
The Law on Social Insurance (SI) 2024, effective from July 1, 2025, stipulates that employees are entitled to pension when meeting two conditions. That is, they must reach retirement age according to the provisions of the Labor Code (60 years old for women, 62 years old for men) and have paid compulsory social insurance for at least 15 years.
According to the revised Law on Social Insurance, female workers are entitled to a minimum pension of 45%, corresponding to 15 years of social insurance contributions. For male workers, to receive a rate of 45%, 20 years of contributions are required. Both male and female workers, after reaching the pension rate of 45%, will then be calculated by adding 2% for each additional year of contributions, up to a maximum of 75%.
For male workers who have paid social insurance for 15 years but less than 20 years, the monthly pension is equal to 40% corresponding to 15 years of payment, then for each additional year of payment, 1% is added.
Employees who meet the retirement age requirements, but whose mandatory social insurance payment period is still less than 6 months to be eligible for a pension, can continue to pay one time for the missing months.
The monthly contribution is equal to the total contribution of the employee and the employer before the employee leaves the job to the pension and death fund.
Accordingly, employees must have paid compulsory social insurance for at least 14 years and 6 months to less than 15 years. The remaining months can be paid in one lump sum to receive pension.
In case a person's working capacity is reduced by 61% or more, he/she must have paid compulsory social insurance for at least 19 years and 6 months to less than 20 years.
The earliest time to make a one-time payment for the missing months is the month immediately preceding the month eligible for pension according to regulations.
Increase lump sum benefit upon retirement
Also according to the new Law, in case an employee has met the conditions for receiving a pension according to regulations, but continues to pay social insurance, the one-time subsidy upon retirement for a period of social insurance payment of more than 35 years for men and more than 30 years for women is calculated specifically as follows:
Each year of social insurance payment greater than 35 years for men, and greater than 30 years for women before reaching retirement age as prescribed, is calculated at 0.5 times the average salary used as the basis for social insurance payment.
Each year of social insurance payment is greater than 35 years for men, and greater than 30 years for women after retirement age, calculated as 2 times the average salary used as the basis for social insurance payment.
Speaking to reporters, Mr. Bui Manh Cuong - Deputy Director of the Department of Labor, Invalids and Social Affairs said: "The revised Law on Social Insurance in 2024 has new regulations that will affect the elderly with the view of expanding the social security net. Notably, workers who have not paid enough social insurance for 15 years to receive a pension will receive a monthly allowance from the social insurance fund with a minimum level of 500,000 VND and enjoy free health insurance."
According to Mr. Cuong, in the coming time, the Department of Labor, Invalids and Social Affairs of the province will promote propaganda and dissemination of new policies of the Social Insurance Law 2024 so that all people, employees and employers can grasp the information, thereby improving the ability to protect their rights to participate in insurance.
