Decree No. 85/2026/ND-CP of the Government on supplementary pension insurance takes effect from May 10, 2026. The highlight of the Decree is the regulations related to subjects, methods, and procedures for participating in supplementary pension insurance.
The Decree stipulates that the subjects participating in supplementary pension insurance are employers and employees who have participated in compulsory social insurance as prescribed in Article 2 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.
The Decree stipulates that 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.
Assessing the regulations on pension insurance, Vietnam Social Security said that in the process of completing the multi-layered social security system, supplementary pension insurance is gradually being shaped more clearly in terms of both policy and practical implementation.
From the pilot phase to the promulgation of Decree No. 85/2026/ND on supplementary pension insurance effective from May 10, 2026, it is expected to expand the accumulation option for workers, and at the same time contribute to promoting sustainable development in the new context.
According to Ms. Pham Thi Thanh Tam, Deputy Director of the Department of Financial Institutions (Ministry of Finance), in essence, the voluntary supplementary pension fund is a pillar in the multi-layered social security system, different from the mandatory social insurance fund of the State. This assessment contributes to clarifying the position of policies in the overall social security system, and at the same time emphasizes the supporting, non-replacement role for social insurance.
This policy was set out early in the Party's resolutions on social insurance policy reform, with the goal of building a multi-layered, flexible and broader coverage of social security.
On that basis, Decree No. 88/2016/ND-CP dated July 1, 2016 on the voluntary supplementary pension program has paved the way for the pilot implementation of the voluntary supplementary pension program, creating a premise for the formation of the market in the following years.
After nearly a decade of implementation, although the scale is still modest, the market has recorded remarkable developments.
By the end of 2025, 7 additional pension funds had come into operation with total net assets of nearly 2,210 billion VND, an increase of 53% compared to the previous year and 26 times higher than in 2021.
The number of participants reached more than 28,500 people, with a total contribution in the year of more than 720 billion VND. These figures show that long-term accumulation needs are gradually being formed, especially among workers with stable incomes.
The special feature of this model is its voluntariness and flexibility. Employees and employers can proactively agree on contribution levels, accumulated benefits according to personal accounts and depending on the fund's investment results. This approach is clearly different from compulsory social insurance, while creating more options suitable to the financial conditions and needs of each individual.
Based on the summary of the pilot process, the 2024 Law on Social Insurance has officially legalized supplementary pension insurance as a component of the social security system.
Following that, Decree No. 85/2026/ND-CP was issued, further completing regulations on organization of implementation, fund management and supervision mechanisms.
According to Ms. Pham Thi Thanh Tam, this is a fund operated by the private sector, voluntary, aimed at groups of workers who need to accumulate more for their old age. This clearly shows the market nature of the model, and also explains why the operating mechanism needs to be both flexible and ensure risk control.
