Clarification on lower pension for 15-year social insurance contributions under the 2024 Social Insurance Law

There has been debate over whether pension benefits would be lower if the minimum period of social insurance contributions were reduced to 15 years. Vietnam Social Security says citizens receive more than a monthly pension, pointing to broader social welfare rights under the policy.

Law takes effect July 1, 2025; minimum contribution period cut to 15 years

The Law on Social Insurance 2024 takes effect on July 1, 2025, introducing major changes to Vietnam’s social welfare policy. A key change affecting millions of workers is the adjustment of the minimum required period of social insurance contributions to receive a pension, from 20 years to 15 years.

Vietnam Social Insurance states the change is intended to balance expanding coverage with the contribution–benefit principle of social insurance.

Vietnam Social Security’s response to concerns about lower pensions

Some concerns suggest that shortening the contribution period could reduce pension levels, making participation less attractive. Vietnam Social Security argues that this view focuses only on the monthly cash benefit and does not reflect the full value of the policy.

The agency says the new rule is particularly beneficial for middle-aged workers who start contributing later, self-employed workers, and those with intermittent participation. Under the updated minimum requirement, these groups can still accumulate enough eligibility to receive a pension rather than being excluded as before.

Beyond monthly pensions: health insurance and survivor benefits

Vietnam Social Security emphasizes that pensioners receive additional protections. Pensioners are issued a free health insurance card for the entire retirement period, with higher coverage for medical examinations and treatment than for those who pay for health insurance themselves.

Pensioners are also guaranteed survivor benefits, including funeral subsidies and benefits for dependents.

Pensions adjusted over time to help preserve purchasing power

The agency also notes that pensions are not fixed over time. Pensions are periodically adjusted by the State based on the consumer price index and economic growth, helping preserve the real value of benefits, mitigate inflation effects, and maintain living standards for beneficiaries.

Pay-in, pay-out principle remains; longer contributions still increase benefits

While the policy is described as more favorable for eligibility, Vietnam Social Security stresses it remains aligned with the pay-in, pay-out principle: higher contributions and a longer contribution period lead to a higher pension.

Accordingly, reducing the minimum period to 15 years is presented as expanding access rather than encouraging short-term participation. Workers who can continue contributing are encouraged to do so longer to maximize benefits.

Early implementation signals: fewer one-time withdrawals

Vietnam Social Security says practical implementation of the 2024 Social Insurance Law has already shown effectiveness.

• In 2025, during the transition and implementation phase, the number of people receiving one-time social insurance payments declined by 24.43% compared with 2024.
• In the first two months of 2026, one-time claims fell by 28.29% year-on-year versus the same period in 2025.

Vietnam Social Security describes these declines as notable amid years of rising one-time withdrawals, suggesting workers may be reconsidering and choosing to remain in the system rather than withdrawing benefits in a lump sum.

Pension benefit rate framework under the 2024 Social Insurance Law

Under the 2024 Social Insurance Law, the maximum pension benefit rate remains at 75% of the average monthly wage used to base contributions, preserving rights for long-time contributors.

Accrual rates for male workers

• For men contributing 15 years to less than 20 years: the first 15 years correspond to 40% of the average wage.
• Each additional year (16th to 19th) adds 1%, bringing the accrual rate to 45% at 20 years.
• For contributions of 20 years or more: the first 20 years correspond to 45%, and for each additional year (from the 21st onward) 2% is added.

Accrual rates for female workers

• For women contributing 15 years: the rate is 45% of the average wage.
• After that, each additional year (from the 16th) adds 2%.