Voluntary participation in supplementary pension insurance
According to Decree No. 85/2026/ND-CP on supplementary pension insurance, effective from May 10, 2026 (replacing Decree No. 88/2016/ND-CP), subjects participating in supplementary pension insurance are employers and employees who have participated in compulsory social insurance according to the provisions of the Law on Social Insurance.
These subjects are allowed to voluntarily participate in supplementary pension insurance implemented by pension fund management enterprises through employers.
Participating in supplementary pension insurance is not a mandatory condition for recruitment, signing, and renewing labor contracts. Employers are not allowed to discriminate or hinder the legitimate rights and interests of employees through participating in supplementary pension insurance.
Employers are not allowed to associate participation in supplementary pension insurance with the policy of rewarding, evaluating emulation and welfare of enterprises for employees.
The level of supplementary pension insurance contribution is agreed upon by employers and employees on a voluntary basis.
Based on labor management requirements and financial capacity, the employer shall develop a written agreement between the employee and the employer on participating in supplementary pension insurance. At the same time, implement supplementary pension insurance contributions for employees of its enterprise according to the written agreement.
Conditions for employees participating in supplementary pension insurance to enjoy the employer's contribution, and investment results from contributions must be specified in the written agreement between the employer and employees.
In case the employer has conditions on the minimum working time for the employee, it is no more than 5 years.
Agreement between employer and employee
Regarding the participation process, the Decree stipulates that employers develop written agreements and notify, and collect opinions from employees.
After agreeing, the employer signs a written agreement on participating in supplementary pension insurance with each employee, or signs with the Trade Union Chairman after collecting the collective opinion of employees.
Employers sign a contract to participate in the supplementary retirement insurance program with the pension fund management company. Based on the list of employees participating in the program, the pension fund management company opens a personal retirement account for employees.
Based on the registered supplementary pension insurance program and the written agreement with the employee, the employer pays the employee's contribution (if any), and the part that the employee entrusts to the employer to pay on behalf (if any) into the supplementary pension insurance fund; notify the enterprise managing the pension fund of the amount paid to each employee according to regulations.
The amount of supplementary pension insurance payment from the pension fund depends on the value of the personal pension account at the time of receipt of payment, regulations on payment in the supplementary pension insurance program, and regulations in the written agreement between employees and employers on participating in supplementary pension insurance.
The State does not guarantee the amount of supplementary pension insurance payment. In case the legitimate rights and interests of organizations and individuals when participating in supplementary pension insurance are violated, or disputes arise, the protection of legitimate rights and interests or dispute resolution shall be carried out through negotiation, mediation, or requesting arbitration or the Vietnamese Court to resolve according to the provisions of law.
Employees participating in supplementary pension insurance can choose to receive monthly payments or receive one-time payments, or combine receiving one-time payments and receiving monthly payments.
According to the Law on Social Insurance, supplementary pension insurance is a voluntary type of insurance according to market principles, aimed at supplementing the pension regime in compulsory social insurance, with a mechanism to create funds from contributions from employers or employers and employees.
Contributions to the supplementary pension insurance fund are managed according to each individual pension account.
The level of supplementary pension insurance payment is determined based on the balance of the personal pension account at the time of payment, accumulated through investment activities of the supplementary pension insurance fund according to market principles.
