Vietnam social insurance law 2024: key changes for staff

Vietnam social insurance law 2024, officially Law No. 41/2024/QH15, was passed by the National Assembly on 29 June 2024 and takes effect on 1 July 2025. It replaces the 2014 Law on Social Insurance. The biggest change for staff is a lower minimum for a pension: men now need 15 years of contributions, not 20. Here is what employers and employees should know.

This is general information for planning. It is not legal advice. Government decrees will add detail before the law starts.

Who must join compulsory insurance

The law keeps compulsory cover for people on labour contracts of one month or more, and for civil servants, public employees and armed forces staff. It also lists company managers, whether or not they draw a salary. Foreign workers on contracts of 12 months or more who work for a Vietnamese employer are covered too, with a few exceptions, such as internal transfers within a company and people who are already past retirement age when they sign.

The list is now wider. It names part-time workers who earn at least the lowest salary used as the base for premiums. It also names owners of registered business households, who will join under rules the Government sets. People who work part time in communes, villages and residential quarters are listed as well.

Employers should check their staff lists against these groups. Managers who are not paid a salary and part-time staff are the two cases most likely to be missed.

Source: Law No. 41/2024/QH15 on Social Insurance, Article 2, published by Vietnam Social Security.

The 15-year pension rule

To get a monthly pension, a worker must reach retirement age and have paid in for at least 15 full years. The 2014 law set the bar at 20 years. Under the new law, 15 years is enough for everyone.

Pension size depends on the years paid. A woman gets 45 percent of her average insured salary at 15 years, plus 2 percent for each extra year, up to 75 percent. A man with 20 years gets 45 percent, plus 2 percent for each extra year, up to 75 percent. A man with between 15 and 20 years gets 40 percent at 15 years, plus 1 percent for each extra year.

The law also sets a lump-sum bonus for long careers. It applies to men with more than 35 years of contributions and women with more than 30 years. Workers who keep paying after retirement age can also earn it.

Source: Law No. 41/2024/QH15, Articles 64, 66 and 68.

Early retirement and one-time payments

Some workers can retire a little early if their working capacity has dropped. They need 20 years of contributions and a loss of working capacity of at least 61 percent, and they must be within five years of retirement age. A worker with a loss of 81 percent or more can be up to ten years early. Their pension is cut by 2 percent for each year of early retirement.

One-time withdrawals are tighter than before. A worker may still take a lump sum on reaching retirement age with under 15 years paid. Or they can choose a small monthly allowance instead. Other cases include moving abroad for good, certain serious illnesses and a severe loss of working capacity.

One more case covers people who stop paying. If a worker has paid before 1 July 2025, has been out of compulsory and voluntary insurance for 12 months, and has under 20 years paid, a lump sum remains possible. Workers in that position should check their record before they decide.

Source: Law No. 41/2024/QH15, Articles 23, 65, 66 and 70.

Voluntary insurance and the social pension

Voluntary cover is open to Vietnamese citizens aged 15 or older who are not in compulsory insurance. Under the new law, people who pay into voluntary insurance pay 22 percent of the income they choose as their base. They can pay every month, every three months or every six months, among other options. The Government may add support for premiums depending on the state budget.

The law also creates a social pension. It is paid from the state budget, not from contributions. Citizens aged 75 or older who get no pension or monthly insurance allowance can claim it in writing. Citizens from 70 to under 75 qualify if they live in poor or near-poor households. The National Assembly Standing Committee can lower these ages over time. People on the social pension also have their health insurance premiums paid by the state.

Source: Law No. 41/2024/QH15, Articles 2, 21, 22, 32 and 36.

What it costs and what to do next

The compulsory rates are set in the law. A total of 3 percent of the insured salary goes to the sickness and maternity fund, and 22 percent goes to the retirement and survivorship fund. The employee pays 8 percent of the insured salary into the retirement fund each month.

Staff and employers have about five months to prepare. Here are four practical steps.

• Check which of your workers fall into the newly listed groups.
• Review each person's contribution record and total years paid.
• Talk to staff before they take a lump sum, because the pension route now needs only 15 years.
• Watch for Government decrees on the details, such as business household rules.

The law repeals the 2014 Law on Social Insurance and its later amendments from 1 July 2025.

Source: Law No. 41/2024/QH15, Articles 32, 33 and 140.

Sources

• Law No. 41/2024/QH15 on Social Insurance, English text (PDF), Vietnam Social Security: https://vss.gov.vn:3535/File_Server_BHXH/documents/Law-41-2024-QH15%20.pdf
• Vietnam Social Security, legal document entry for Law 41/2024/QH15: https://vss.gov.vn/english/legal/Pages/default.aspx?ItemID=3571