As the Government agency responsible for implementing social and health insurance policies, the Vietnam Social Security (VSS) has actively engaged in the development of this law with the early dissemination of the law to ensure that the public was fully informed and to foster consensus around the changes.

The draft law was approved by the 15th NA at the end of June. Compared to the 2014 Law on Social Insurance, the 2024 law includes numerous changes aimed at major goals, such as expanding the participant network, providing additional benefits to attract workers, ensuring long-term social security, addressing the shortcomings of the 2014 Law on Social Insurance and strengthening sanctions to handle late social insurance payment and evasion.

The new Law has several important points with 141 articles arranged in 11 chapters.

Firstly, the Law provides a State-funded social pension scheme, which is developed from the current regulations on monthly social allowances for the elderly.

Secondly, the Law is designed along the line of developing a multi-tier social insurance system. Accordingly, social insurance participants will be entitled monthly allowances before reaching the age of eligibility for social pension. During that period, they are also eligible for state-covered health insurance benefits

Thirdly, under the new Law, the scope of compulsory social insurance participants is expanded.

Fourthly, the Law is more beneficial to social insurance participants, e.g., it reduces the minimum years of insurance premium payment required for entitlement to monthly pensions and grant maternity allowances to voluntary social participants.

Fifthly, the Law devotes a separate chapter to providing the management of social insurance premium collection and payment, clarifying the connotation of, and measures for handling, late payment and evasion of social insurance premiums.

Sixthly, the Law specifies a reference level, i.e., a money amount prescribed by the Government for calculation of social insurance premiums and benefits, to replace the basic salary level, which was abolished as from July 1.

Seventhly, the Law contains more specific provisions on the investment and management of the Social Insurance Fund as well as the approval, appraisal, account finalization of expenses for social insurance activities.

Eight, under the Law, social insurance administrative procedures are simplified, enabling electronic transactions in the social insurance sector and assessment of public satisfaction with the implementation of social insurance policies and regimes.

Lastly, the Law is added with regulations on international cooperation and further clarifies the state management responsibilities of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance for social insurance-related issues.