7 principles of social insurance

The Lao Dong Newspaper Legal Consulting Office replied:

Article 5 of the Law on Social Insurance 2024 (effective from July 2025) stipulates the principles of social insurance as follows:

1. The compulsory social insurance and voluntary social insurance benefits are calculated based on the social insurance contribution rate and payment period; shared among social insurance participants according to the provisions of this Law.

2. The compulsory social insurance payment level is calculated based on the salary used as the basis for compulsory social insurance payment. The voluntary social insurance contribution rate is calculated based on income as the basis for voluntary social insurance payment chosen by the participants.

3. People who have paid compulsory social insurance and voluntary social insurance are entitled to monthly allowances, pensions and death benefits based on the period of compulsory social insurance and voluntary social insurance contributions.

The period of social insurance payment that has been calculated for one-time social insurance payment will not be counted in the period used as the basis for calculating social insurance benefits.

4. The social insurance fund is managed centrally, consistently, publicly and transparently; used for the right purpose and accounted for independently according to component funds, groups of subjects implementing salary regimes prescribed by the State and salary regimes decided by employers.

5. The implementation of social insurance must be simple, easy, convenient, ensuring timely and complete rights of participants and beneficiaries of social insurance regimes.

6. The minimum period of social insurance payment to determine the conditions for receiving monthly pension and death benefits is calculated annually, a year must be calculated for 12 months. In case of calculating the benefit level, the period of social insurance payment with odd months from 01 month to 06 months is counted as half a year, from 07 months to 11 months is counted as one year.

7. The settlement of social insurance regimes is determined according to the provisions of the law on social insurance at the time of receiving social insurance regimes.

Thus, the principles of social insurance are stipulated as above.