According to the 2014 Law on Social Insurance, four new regulations on social insurance will take effect from January 1, 2018.

Two more subjects participating in compulsory insurance

Vietnamese workers with one-to-three month term contracts and foreign workers bearing work permits issued by Vietnamese authorized agencies will have to join compulsory social insurance in compliance with the Government’s regulations.

Revised regulations on monthly social insurance contribution and benefits

From January 1, 2018, the level of compulsory social insurance premium will be calculated based on basic salary, allowances and extra payment as stipulated in Circular 47/2015/TT-BLDTTXH of the Ministry of Labour, Invalids and Social Affairs.

Employees’ salary is subject to the arrangement of each firm. Extra payments are those other than salary and allowances and relevant to the job description stated in labour contracts.

Extra payments exclude: bonuses detailed in Article 103 of the Labour Code, such as money covering between-shift meals, money given to employees with dead or married relatives, money given on an employee’s birthday, assistance for those having labour accidents or occupational diseases, and other payments irrelevant to their job description.

Changes in regulations for earlier retirement will also be effective from January 1, 2018. Accordingly, early retirees due to loss of working capacity of between 61-80 percent, with at least 20 years of social insurance participation shall be entitled to receive less than maximum-level pensions if they are at the ages detailed in the following table:

Those who retire early due to loss of working capacity of at least 61 percent percent, with at least 20 years of social insurance participation, including 15 years working in special heavy, hazardous and dangerous jobs, shall be entitled to receive pensions regardless of their age.

Years of social insurance contribution and maximum pensions

From January 1, 2018, female workers with 15 years of social insurance participation can receive 45 percent of the average of their total social insurance premiums. The entitlement will increase by 2 percent annually from the 16^th year on. Those with 30 years of social insurance participation will enjoy the maximum entitlement of 75 percent, instead of 25 years as currently.

Currently, male workers with 15 years of social insurance participation receive 45 percent of the average of their total social insurance premiums. However, in order to enjoy that level of entitlement, one must participate in social insurance for 16 years from January 1, 2018; and 20 years from 2022. Those with 35 years of social insurance participation will enjoy the maximum entitlement of 75 percent, instead of 30 years as currently.

Male retirees in 2018 with 31 years of social insurance participation will be entitled to the maximum pension of 75 percent of their total social insurance premiums. Those who retire in 2019, 2020, 2021, and 2022 must participate in social insurance for up to 35 years to enjoy the maximum level of entitlement of 75 percent.

To sum up, to enjoy the maximum level of social insurance entitlement of 75 percent of their total social insurance premiums, employees must participate in social insurance for an additional five years compared with now. Early retirees will receive 2 percent less than the maximum level each year.

State supports voluntary social insurance participants

Poor and near poor households participating in voluntary social insurance scheme shall receive assistance of 30 percent and 25 percent, respectively, of their monthly social insurance premiums. Other voluntary participants will enjoy discounts of 10 percent.

International Cooperation Department