Many workers working under unterm labor contracts (LTC) are wondering how withdrawing unemployment insurance (UI) will affect their pension benefits in the future.
According to the 2013 Law on Employment, to receive unemployment benefits, employees must pay unemployment insurance; terminate the labor contract or work contract, not be subject to unilateral illegal termination of the contract; not receive monthly pension or disability allowance.
The 2025 Law on Employment (effective from January 1, 2026), the condition for receiving unemployment insurance also affirms: employees are only allowed to withdraw when they quit their jobs but are not eligible for pension.
Pursuant to Clause 1, Article 64 of the Law on Social Insurance 2024, employees who quit their jobs and have paid compulsory social insurance (SI) for 15 years or more and are of retirement age under the Labor Code will receive a pension.
Special cases such as: working in a heavy, toxic job, working in an area with particularly difficult socio-economic conditions or mining coal in the mine... can also receive early retirement.
Notably, this regulation does not mention the right to pension if you withdraw unemployment insurance.
From the above regulations, it can be affirmed that employees working under the untermitable labor contract, when quitting their job, if they are eligible for unemployment insurance and have not yet received a pension, will still be entitled to withdraw unemployment benefits.
Later, when they are old enough and have paid compulsory social insurance for many years, they will still receive a normal pension.
Withdrawing unemployment insurance does not mean losing or reducing pension benefits, because these two regimes are completely independent and applied at different times.
