The 15th National Assembly of Vietnam passed the revised Social Insurance Law during its 7th session at the end of June 2024. The revised Social Insurance Law will come into force on 1 July 2025. The major amendments to the Social Insurance Law are as follows:
Expanding Compulsory Social Insurance Coverage
The following persons are eligible to participate in compulsory insurance:
(1) Employees who sign a part-time labor contract of one month or more, with a monthly salary equal to or higher than the salary level used as a basis for the minimum compulsory social insurance payment.
(2) Owners of registered household businesses.
(3) Managers of enterprise and executive manager of the cooperative who do not receive salaries.
Reducing Minimum Years of Social Insurance Contributions
The minimum years of social insurance contributions entitled to pension is reduced from 20 years to 15 years. Participants who have contributed to social insurance for 15 years and reached retirement age will be eligible for a pension.
Restricting Lump-Sum Social Insurance Withdrawals
Starting from 1 July 2025, new social insurance participants will not be allowed to withdraw their insurance in a lump sum, except in special cases as follows:
(1) reaching retirement age but having less than 15 years of social insurance contributions;
(2) emigrating abroad;
(3) having a severe illness or suffering a work capacity decrease of 81% or more.
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