I. Legal Basis

• Resolution No. 28-NQ/TW
• Revised Social Insurance Law
• Labor Code 2019

II. Reduction of Minimum Contribution Period for Retirement Pension

The minimum required years of SI contributions to receive a monthly pension will be reduced from 20 years to 15 years, providing opportunities for those who started contributing late or had intermittent contribution periods to qualify for retirement benefits.

III. Proposal to Add Five Groups for Mandatory SI Contributions Starting in 2025

• Household business owners (with business registration).
• Non-specialized workers in villages and residential groups, similar to non-specialized workers at the commune level.
• Enterprise managers, supervisors, representatives of state capital, representatives of enterprise capital in companies and parent companies, cooperative executives not receiving salaries.
• Part-time workers (workers under flexible employment arrangements).
• Individuals without labor contracts or formal agreements but whose work involves payment of wages/salaries and is under the management, direction, and supervision of another party.

IV. Restrictions on Lump-Sum SI Withdrawal After 2025

The government proposes two options for handling lump-sum withdrawals and seeks National Assembly approval:

Option 1: Differentiating Workers into Two Groups:

Group 1: Workers who participated in SI before the revised Social Insurance Law takes effect. If they have less than 20 years of contributions and have not worked for 12 months, they may request a lump-sum withdrawal.

Group 2: Workers who join SI after the revised law takes effect (expected from July 1, 2025) will not be eligible for lump-sum withdrawals.

Option 2: Partial Lump-Sum Withdrawal:

After 12 months of not being covered under mandatory or voluntary SI and with less than 20 years of contributions, workers may request a partial withdrawal, capped at 50% of their total contributions to the retirement and survivorship fund. The remaining contributions will be preserved for continued participation and future SI benefits.

V. Proposed Wage Base for Mandatory SI Contributions Starting in 2025

The wage used for mandatory SI contributions will range from 50% to 800% (8 times the regional minimum wage) of the highest regional minimum wage announced by the government.

This rule applies to individuals not receiving salaries (e.g., household business owners, enterprise managers, cooperative executives) and part-time workers.

For the non-state sector, the wage base will largely follow current regulations but will specify that the wage includes:

• Monthly salary,
• Salary allowances,
• Other regularly paid and stable supplements.

VI. Additional Benefits for Non-Specialized Workers at Commune Level

Non-specialized workers at the commune level will now be entitled to sickness and maternity benefits under the SI system.

VII. Voluntary SI Contributions to Include Maternity Benefits

Participants in voluntary SI will now also be entitled to maternity benefits.

VIII. Lowering the Eligibility Age for Social Pension Benefits

Vietnamese citizens aged 75 and older (instead of the current 80 and older) who do not receive pensions, monthly SSI benefits, or other monthly social allowances will qualify for state-funded social pension benefits.

The target is that by 2030, approximately 60% of retirees will receive such benefits.

IX. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

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