Youme Law Firm LLC said that from July 1, 2025, people who have paid social insurance (SI) for 15 years will receive a pension.
According to the provisions of the Social Insurance Law 2024, from July 1 to next, employees who have paid social insurance for 15 years will receive a pension instead of having to pay for 20 years as currently prescribed.
The 2024 Social Insurance Law creates opportunities for late or inconsistent participants to have the opportunity to contribute for 15 years to receive a monthly pension instead of having to receive one-time social insurance. This regulation on the minimum number of years of contribution does not apply to pensioners who are less likely to work.
Due to the reduction of the social insurance payment period to 15 years, the minimum pension rate of 45% according to the Social Insurance Law 2014 is no longer suitable. Therefore, the Social Insurance Law 2024 stipulates how to calculate the new pension level.
Specifically, for female workers, the monthly pension is equal to 45% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
For male workers, the monthly pension is equal to 45% of the average salary used as the basis for social insurance contributions corresponding to 20 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.
In case male workers have paid social insurance for 15 years to less than 20 years, the monthly pension is equal to 40% of the average salary used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 1% will be calculated.
Reducing the minimum social insurance payment period is a solution that brings "double benefits". This policy not only contributes to preventing the wave of one-time social insurance withdrawals but also helps increase the number of people participating in the social insurance system.
In particular, for the group of employees who participate in social insurance late (about 45 - 47 years old to participate) or those who participate inconsistently but have not yet accumulated enough 20 years of social insurance contributions when reaching retirement age, they will also receive a monthly pension.
