From July 1, people without pensions will receive social pension benefits from the age of 75
The Law on Social Insurance 2024 (effective from July 1) stipulates that social pension benefits are a type of social insurance guaranteed by the state budget, built on the basis of inheriting and developing part of the regulations on monthly social allowances for the elderly.
Accordingly, when the Law officially takes effect, the age of receiving social pension benefits will be reduced by 5 years compared to the current monthly social allowance age for the elderly (80 years old). Therefore, Vietnamese citizens aged 75 and over who do not receive monthly pension or social insurance benefits will receive social pension benefits.
Vietnamese citizens aged 70 to under 75 who are poor households or near-poor households and meet the conditions are entitled to social pension benefits. The monthly social pension subsidy level is regulated by the Government in accordance with the socio-economic development conditions and the capacity of the state budget in each period.
Every 3 years, the Government reviews and considers adjusting the social pension subsidy level.
Depending on socio-economic conditions, the ability to balance the budget and mobilize social resources, the Provincial People's Committee will submit to the People's Council of the same level a decision on additional support for social pension beneficiaries.
Based on the Government's proposal in accordance with the socio-economic development conditions and the capacity of the state budget in each period, the National Assembly Standing Committee decided to gradually reduce the age of receiving social pension benefits.
Accordingly, Vietnamese citizens who are old enough to retire and have paid social insurance but are not eligible for pension according to the provisions of law and are not eligible for social pension benefits if they do not receive one-time social insurance and do not reserve it but have a request will receive a monthly allowance from their own contributions.
The duration and monthly allowance are determined based on the duration of payment and the basis for social insurance payment of the employee. The lowest monthly allowance is equal to the monthly social pension allowance.
In case the total amount of money is calculated according to the time of payment, the basis for paying social insurance of workers is higher than the amount of monthly allowance equal to the social retirement allowance at the time of settlement for the period from the time of retirement to the age of enough social retirement allowance, the employee is calculated to enjoy the monthly allowance at a higher level.
Millions of elderly people do not have pensions or benefits
According to statistics from the Ministry of Home Affairs (formerly the Ministry of Labor, War Invalids and Social Affairs), as of December 31, 2022, there were about 14.4 million retirees nationwide.
The Vietnam General Confederation of Labor assessed that with about 5 million elderly people over 60 and under 80 who are not poor households, not disabled, and do not receive monthly allowances, they may face difficulties in retirement.
The trade union organization said that many countries identify aging allowances as an important layer in the multi-layered social insurance system.
Therefore, the state budget needs to provide an income guarantee for the elderly without pensions or monthly social insurance benefits.
In the long term, the trade union recommends a social mobilization policy to support this group with a higher benefit level and a suitable roadmap to reduce the social pension age.
According to Prof. Dr. Giang Thanh Long - senior lecturer at the National Economics University, many governments allow people to receive monthly allowances with a minimum living standard, ensuring the needs of food, medicine, gasoline for transportation, etc.
He said that the authorities can increase social pension benefits to better support the people, but it needs to be carefully evaluated by the authorities.
At the same time, expand pension beneficiaries with accumulated from social insurance contributions, participate in supplementary life insurance.
Statistics from Vietnam Social Security show that by the end of March 2025, the whole country will have only more than 3.3 million people receiving monthly pensions and social insurance benefits, of which about 2.7 million people will receive pensions.
Striving to achieve the target of about 60% of retirees receiving pensions by 2023 according to Resolution 28-NQ/TW is still a big challenge, especially when the average increase in pensioners is only about 80,000 people/year.
