7 things people need to know about Social Insurance Policy 2025
The Social Insurance Law (SI) 2024 will take effect from July 1, 2025. Accordingly, there will be 07 things that people need to know about the changes in the SI policy 2025 in the article below.
1. Participating in SI from July 1, 2025 will not be able to withdraw SI one time if not in the prescribed case
Accordingly, employees participating in social insurance from July 1, 2025 onwards are not allowed to withdraw social insurance one time if they do not fall into the following cases of one-time withdrawal of social insurance:
- Being old enough to receive pension but not having paid social insurance for 15 years
- Going abroad to settle
- People suffering from one of the following diseases: cancer, paralysis, decompensated cirrhosis, severe tuberculosis, AIDS, etc.
- Employees who have paid social insurance before July 1, 2025, after 12 months are not subject to compulsory social insurance but also do not participate in voluntary social insurance and have paid social insurance for less than 20 years;
This means that in the case of employees participating in social insurance one time from July 1, 2025, after 12 months of quitting work, not participating in social insurance and having paid social insurance for less than 20 years, they are not allowed to withdraw social insurance one time.
Vietnam’s social insurance law: New law on 1 July 2025
2. More opportunities to receive pensions for overseas workers
The 2024 Social Insurance Law better ensures the right to participate in and enjoy social insurance policies for Vietnamese workers working abroad and foreigners working in Vietnam.
Accordingly, the Law recognizes the work process as well as the way to calculate benefits for Vietnamese workers working abroad as well as foreign workers working in Vietnam in the coming time.
The calculation of the monthly pension of workers who are eligible for pensions and have paid social insurance according to the provisions of the International Treaty to which the Socialist Republic of Vietnam is a member but have paid social insurance in Vietnam for <15 years, each year of payment will be calculated at 2.25% of the average salary used as the basis for social insurance payment.
3. Supplementing the method of calculating monthly pension benefits
From July 1, 2025, employees who have participated in social insurance for 15 years will also receive pension benefits, so the Social Insurance Law 2024 has supplemented the method of calculating pension benefits for male employees who have participated in social insurance for 15 years to less than 20 years at Point b, Clause 1, Article 66 of the Social Insurance Law 2024.
Vietnam adjusts retirement and pension policies for 2025
4. Reducing the age of receiving social pension benefits
According to Clause 2, Article 3 of the Social Insurance Law 2024, social pension benefits are a type of social insurance guaranteed by the state budget, built on the basis of inheriting and partly developing from the regulations on monthly social benefits for the elderly who do not have pensions or monthly social insurance benefits.
Accordingly, from July 1, 2025, the age of receiving social pension benefits for employees will be reduced to 75 years old according to Article 21 of the Law on Social Insurance 2024 (currently 80 years old).
For those in poor households and near-poor households, those aged 70 – under 75 will receive social pension benefits.
5. Increase benefits to encourage employees to receive pensions instead of receiving one-time social insurance
The Law on Social Insurance 2024 supplements regulations to increase benefits, increase attractiveness, and encourage employees to reserve their payment period to receive pensions instead of receiving one-time social insurance.
Accordingly, from July 1, 2025, employees who do not receive one-time social insurance but reserve their payment period to continue participating will have the opportunity to enjoy higher benefits such as:
- Enjoy higher benefits when continuing to participate in social insurance.
- Receive pension with easier conditions
- During the pension period, the Social Insurance Fund pays for health insurance
- Receive monthly allowance when not eligible for pension and not old enough to receive social pension
- During the monthly allowance period, the State budget pays for health insurance.
6. Supplementing social pension benefits for people without pension
Social pension benefits are a necessary supplement to the regime to contribute to ensuring the lives of workers who do not have pensions or monthly social insurance benefits when they retire.
According to Article 21 of the Law on Social Insurance, Vietnamese citizens are entitled to social pension benefits when they meet the following conditions:
- (1) Being 75 years of age or older;
- (2) Not receiving a monthly pension or social insurance benefit, except in other cases as prescribed by the Government;
- (3) Having a written request to receive social pension benefits.
Above is an update from S4B Vietnam on what will change in the Social Insurance Policy 2025 in the near future.
If you have any questions, please contact hotline for support.
>>>Read more: Voluntary Personal Accident and Medical Insurance
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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