The Government has issued Decree No. 162/2026/ND-CP, which adjusts to increase the pension level, social insurance allowances and monthly allowances by 8%.
Notably, the Decree has added a group of people who are receiving monthly allowances according to the provisions of Article 23 of the 2024 Law on Social Insurance who are also subject to adjustments to increase the benefit level this time.
In the 2024 Law on Social Insurance, effective from July 1, 2025, a new policy has been added for employees who have reached retirement age but have not accumulated enough social insurance contribution time to receive pensions.
Article 23 of the 2024 Law on Social Insurance stipulates that Vietnamese citizens will be entitled to this monthly allowance when they simultaneously meet the following conditions:
Having reached retirement age according to the provisions of law; having participated in social insurance but not meeting the conditions to receive a pension according to the new regulations of the law (under 15 years of social insurance contributions); not reaching the age to receive social pension benefits (usually under 75 years old or from 70 to under 75 years old for people from poor and near-poor households); having a request to receive monthly allowances from their own social insurance contributions.
In particular, employees must not receive one-time social insurance and do not preserve the social insurance contribution period.
According to Vietnam Social Security, this is considered a protective layer in the multi-layered social security system, helping people have a stable income and receive medical care in their old age.
This regime brings many practical benefits to employees when they are old. The monthly allowance level is determined based on the contribution period and social insurance contribution level of employees, in which the lowest level is equal to the monthly social pension allowance level, which is currently 500,000 VND/month.
During the time of enjoying the allowance, employees are also paid health insurance by the state budget to ensure the right to health care. At the same time, this allowance level will also be adjusted to increase correspondingly when the Government implements pension adjustments.
If the total amount of contributions of employees is not enough to enjoy until the age of receiving social pension benefits, they can choose to pay in one installment for the remaining part to be enjoyed until they reach the age of receiving social pension benefits.
Not only ensuring the rights of participants, the policy also expands support for relatives. If a person receiving monthly allowances dies, relatives will receive a one-time allowance for the time the employee has not fully enjoyed it. In addition, relatives also receive funeral allowances if the employee meets the conditions on social insurance participation time as prescribed.
The procedure for enjoying benefits is also regulated quite simply. The dossier includes a social insurance book and a written request for monthly allowance according to the model of the social insurance agency.
Employees submit dossiers directly to the social insurance agency, and within 5 working days from the date of receipt of complete and valid dossiers, the social insurance agency must resolve and organize payment. If not resolved, it must respond in writing and clearly state the reason.
The addition of monthly allowances according to Article 23 of the 2024 Law on Social Insurance is assessed as an important step forward in perfecting the social security system, contributing to eliminating the "guardia gap" for people with short social insurance participation time, but not yet eligible to receive pensions.
