Youme Law Firm said: From July 1, 2025, the Law on Social Insurance 2024 officially takes effect with many changes. Especially, the lump -sum allowance will increase significantly, which can be 4 times higher than the current level prescribed in the 2014 Law on Social Insurance.
According to the provisions of Clause 1, Article 68 of the Law on Social Insurance 2024, male workers have time to participate in social insurance for more than 35 years and female workers who have time to pay social insurance for more than 30 years, corresponding to the pension rate of over 75%, in addition to the monthly pension, will receive an additional one -time allowance when retiring.
The one -time allowance is divided into two specific cases, specified in Clause 2, Article 68 of the Law on Social Insurance 2024:
Case 1: Employees are eligible for pension and complete procedures for receiving retirement regime will receive a lump -sum allowance.
This allowance level is equal to 0.5 times the average salary as a basis for paying social insurance for each year exceeding the provisions of Clause 1, Article 68 until the retirement age according to the law. This calculation remains the same compared to the 2014 Social Insurance Law.
Case 2: Employees are eligible for pension but continue to participate in social insurance payment after retirement age will receive a lump -sum allowance at a higher level.
Each additional payment will be enjoyed 2 times the average salary as a basis for paying social insurance. Compared to the current regulations of the 2014 Social Insurance Law, this allowance level is 4 times higher.
Besides, from 1.7.2025, there will be 2 subjects to increase their pensions:
In Article 67 of the Law on Social Insurance 2024, stipulating the adjustment of pension as follows:
Pensions are adjusted on the basis of the increase in the consumer price index in accordance with the capacity of the state budget and social insurance fund.
Adjustment of adequate pension increases for subjects with low pensions and retirement before 1995 to ensure narrowing the gap between pension between retirement people in periods.
The Government stipulates the time, subjects and levels of pension adjustment specified in this section.
Thus, from July 1, 2025, workers will be adjusted to increase their pension increases to ensure the narrowing of the pension gap between retirement people in periods if they meet the two subjects: there is a low pension; Retired before 1995.
