The 2024 Law on Social Insurance (BHXH) has supplemented a new policy for workers who have reached retirement age but have not accumulated enough contribution time to receive pensions.
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.
Article 23 of the 2024 Law on Social Insurance stipulates that Vietnamese citizens will be entitled to monthly allowances when they reach retirement age; have a social insurance participation period of less than 15 years; are not old enough to receive social pension benefits (under 75 years old or from 70 to under 75 years old for poor and near-poor households); and have a request to receive monthly allowances from their own social insurance contributions. To receive this allowance, employees do not receive one-time social insurance and do not preserve the social insurance contribution period.
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.
Throughout 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.
According to the Decree adjusting pensions, social insurance allowances and monthly allowances that has just been issued, beneficiaries will receive an additional 8% increase on the pension, social insurance allowance and monthly allowance level of June 2026, applied from July 1.
People with the lowest monthly allowance equal to the social pension allowance will be subject to adjustment in the direction of increasing pensions and allowances by 8% from July 1st, reaching 540,000 VND.
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.
Relatives are also entitled to funeral allowances if the employee meets the conditions for 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 form of the social insurance agency. Employees submit the dossier directly to the social insurance agency and within 5 working days from the date of receipt of complete valid dossiers, the social insurance agency must resolve and organize payment. In case of non-resolution, it must be answered in writing and clearly state the reason.
