Conditions for receiving one-time benefits upon retirement
According to the provisions of Clause 1, Article 68 of the Social Insurance Law 2024 (effective from July 1, 2025), male workers with a social insurance payment period of more than 35 years, female workers with a social insurance payment period of more than 30 years will also receive a one-time allowance in addition to pension when retiring.
The one-time subsidy level is stipulated in Clause 2, Article 68 of the Social Insurance Law 2024, divided into 2 cases.
In the first case, the employee is eligible for pension and the procedures for entitlement to the retirement regime, the lump -sum allowance level is calculated by 0.5 times of the average salary level as a basis for social insurance premium for each year higher than the provisions of Clause 1, Article 68 of the Law on Social Insurance in 2024 to retirement age as prescribed by law.
In this case, the one-time allowance level is the same as the current regulations under the Social Insurance Law 2014.
In the second case, the employee is eligible to receive pensions and continue to pay social insurance, the level of 2 -time allowance for the average salary as a basis for social insurance for each year is higher than the prescribed year (from the time of enough retirement age as prescribed by law until the time of retirement, enjoying the retirement regime).
In this case, the one-time subsidy level is 4 times higher than the current benefit level according to the Social Insurance Law 2014.
How to calculate the one-time pension level upon retirement
Currently, according to the provisions of Clause 2, Article 58 of the 2014 Law on Social Insurance, the lump -sum allowance when retirement is calculated according to the number of years of social insurance premiums (social insurance) higher than the number of years corresponding to the 75%pension rate, each year of paying social insurance is calculated by 0.5 months of the average monthly salary of social insurance premiums.
The one-time pension upon retirement = 0.5 x average monthly salary for social insurance contributions x Number of years of social insurance contributions exceeding 75%.
For example, Ms. Kieu Thi Lan has paid social insurance for 35 years, the average salary for social insurance contributions is 7 million. So the one-time pension upon retirement of Ms. Lan will = 0.5 x 7 million x 5 years = 17.5 million.
Meanwhile, according to the Law on Social Insurance 2024, from July 1, 2025, according to Clause 2, Article 68 of the Law on Social Insurance 2024, the one-time pension level upon retirement is as follows:
2. The one-time allowance for each year of contributions is 0.5 times higher than the average salary used as the basis for social insurance contributions prescribed in Article 72 of this Law for each year of contributions higher than the retirement age prescribed by law.
In case the employee is eligible for pensions as prescribed in Article 64 and Article 65 of this Law, which continues to pay social insurance, the level of 02 times of the average salary as a basis for social insurance premiums specified in Article 72 of this Law for each year is higher than the number of years prescribed in Clause 1 of this Article from the time of enough retirement age as prescribed by law until the time of retirement.
Thus, from July 1, 2025, the one-time pension upon retirement is calculated as follows:
- In case the employee benefits at the time of retirement age:
The one-time allowance level is equal to 0.5 times the average salary used as the basis for social insurance contributions for each year of contributions higher than the prescribed level until retirement age.
- In case the employee is eligible for pension but continues to pay social insurance
The subsidy level is twice the average salary used as the basis for social insurance contributions for each year of contributions higher than the prescribed number of years.
From July 1, 2025, the Social Insurance Law 2024 has increased the one-time pension upon retirement for employees who are eligible for pension but continue to pay social insurance. This encourages employees to continue working and paying social insurance after retirement age.
For example, Mr. Dao Thanh Binh has a total social insurance payment period of 40 years. Mr. Binh is old enough to retire and is eligible for pension when paying 30 years of social insurance. However, Mr. Binh continued to work and pay social insurance for another 10 years until retirement.
Mr. Binh's average salary as the basis for social insurance contributions is 9 million VND/month.
The number of years of contributions exceeding the retirement age is: 40 years - 30 years = 10 years.
The one-time allowance for each year of excess contributions is calculated at twice the average salary used as the basis for social insurance contributions for each year of excess contributions.
Therefore, the one-time subsidy for 10 years of overpaid contributions is: 2 × 9 million × 10 = 180 million VND.
