From July 1, the Social Insurance Law 2024 will officially take effect with many changes to the pension regime.
According to the Law on Social Insurance 2024, the one-time pension upon retirement is divided into two cases. If the employee is eligible for pension and completes the procedures to receive pension benefits, he/she will receive a one-time allowance.
This subsidy level is calculated at 0.5 times the average salary used as the basis for social insurance contributions for each year of excess contributions. This calculation remains the same compared to the Law on Social Insurance 2014.
In the case of employees who are eligible for pension but continue to participate in social insurance after retirement age, they will receive a one-time allowance at a higher level. For each additional year, they will receive twice the average salary as the basis for social insurance contributions, 4 times higher than the Social Insurance Law 2014.
In addition, pensioners are also issued free health insurance cards from the time of pension until death with high benefits.
The health insurance benefit level for pensioners is 95% of the cost of medical examination and treatment from the time of retirement until the end of life. This is a practical social security policy, better supporting health care for the elderly.
In addition, in addition to the above regimes, relatives of pensioners are entitled to death benefits if during the monthly pension period, the pensioner unfortunately dies.
The death benefit includes a funeral allowance equal to 10 times the basic salary for the month in which the pensioner dies and a monthly death allowance or a one-time death allowance, depending on specific conditions.
The 2024 Social Insurance Law not only focuses on pension regimes, but also extends the policy to other groups of subjects. A noteworthy point is that employees who only need to pay social insurance for 15 years can be eligible for pension, instead of 20 years as before.
In addition, the new law supplements pension benefits for people without pensions, maternity policies for employees participating in voluntary social insurance and for non-professional cadres at the commune level - groups that were not previously fully protected.
