Tiếng ViệtSocial Insurance Law 2024, issued by the National Assembly on June 29th, 2024, amended and supplemented several articles of the Social Insurance Law 2014.
There are some important amendements that enterprises need to note:
1/ Supplement and broaden the scope of participants in social insurance
Update some subjects participating in compulsory and voluntary social insurance, such as: People working under employment contracts with terms of at least 01 month; Enterprise managers who receive or do not receive salary; Foreign nationals working in Vietnam under employment contracts with terms of at least 12 months;…
For details, please see Article 2 of the Social Insurance Law 2024.
2/ Supplement regulations on the “Social insurance books” and “Electronic transactions in social insurance”
No later than January 1 st , 2026, electronic social insurance books shall be issued. Physical social insurance books will be issued if requested by participants.
Organizations and individuals capable of conducting electronic transactions in social insurance shall conduct electronic transactions with social security authorities (implemented online via the Public Service Portal).
For details, please see Articles 25, 26 of the Social Insurance Law 2024 and Decree No. 137/2024/ND-CP.
3/ Change the minimum years of paying Compulsory Social insurance to receive pensions
Before enacting the Social Insurance Law 2024, the minimum years of paying compulsory social insurance to receive pensions were 20 years. After the Social Insurance Law 2024 takes effect, there will be a change in the number of years of compulsory social insurance contributions, reduced from 20 to 15 years, promoting the opportunity to receive pensions for more people, especially those participating in social insurance after July 1st , 2025.
4/ Change “Statutory pay rate” to “Reference level”
Pursuant to Social Insurance Law 2024, the Reference level shall be adjusted according to the increase in consumer price index, economic growth, in consideration of the capacity of state budget and social insurance.
The Social Insurance Law 2024 defines the “Reference level” used for calculating the premiums and benefits of certain types of social insurance. Before the Social Insurance Law 2024 takes effect on July 1st, 2025, the Reference level prescribed in Social Insurance Law 2024 shall be the Statutory pay rate. Currently, pursuant to Article 3 of Decree 73/2024/ND-CP, the Statutory pay rate applied is VND 2.340.000 per month, therefore, the Reference level prescribed in Social Insurance Law 2024 will be VND 2.340.000.
5/ Supplementing social retirement benefits
From July 1st, 2025, Social Insurance Law 2024 supplements social retirement benefits. Vietnamese citizens aged 75 or older who do not have a pension or monthly social insurance allowances will receive social retirement benefits.
For Vietnamese citizens who live in poor households, near-poor households, the age requirement is reduced, from 70 to under 75 years old, they are eligible for social retirement benefits.
Above are the notable points of the Social Insurance Law 2024, DNC hopes that your business will take note to plan to participate and use social insurance appropriately, ensuring to supplement the provisions of the law.
DNC hopes that there will be opportunities to support the Valued Client in the process of participating in and using social insurance in Vietnam.
Sincere thanks!
