Participation in Social Insurance from July 1, 2025, Will Not Allow One-Time Withdrawal under the social insurance policy 2025.
According to the 2025 social insurance policy, employees starting to participate in social insurance from July 1, 2025, will not be allowed to withdraw social insurance in one lump sum. except in the following cases:
- Reaching retirement age but having less than 15 years of social insurance contributions.
- Emigrating abroad for permanent residence.
- Suffering from life-threatening diseases such as cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS.
- Employees who contributed to social insurance before July 1, 2025, and after 12 months are no longer subject to mandatory social insurance or voluntary social insurance, with less than 20 years of contributions.
This aims to limit one-time social insurance withdrawals, encouraging employees to maintain participation for long-term pension benefits.
Conditions for Receiving a Pension from July 1, 2025 as regulated by the social insurance policy 2025.
According to the latest social insurance policy, effective from July 1, 2025, the conditions for employees to receive a monthly pension have been adjusted as follows:
- Minimum social insurance contribution period: Reduced from 20 years to 15 years.
- Retirement age: Employees must reach the retirement age as stipulated in Clause 2, Article 169 of the Labor Code, specifically as follows: From 2025, under normal working conditions, the retirement age is 61 years and 3 months for male employees and 56 years and 8 months for female employees; thereafter, it increases by 3 months for males and 4 months for females each year.
This provision aims to enable those who join social insurance late or irregularly to accumulate at least 15 years of contributions to receive a monthly pension, instead of a one-time withdrawal.
Additionally, employees who reach retirement age and have contributed to social insurance for 15 years or more will receive a free health insurance card for healthcare throughout their pension period.
2025 Social Insurance Policy Supplements Pension Benefit Calculation Method in the latest social insurance policy 2025.
Based on Clause b, Paragraph 1, Article 66 of the 2024 Social Insurance Law (effective from July 1, 2025), a new method for calculating pension benefits has been added for male employees with a social insurance contribution period of 15 to under 20 years.
Accordingly, the monthly pension benefit from July 1, 2025, is stipulated as follows:
Male employees:
Contributing 20 years of social insurance entitles them to 45%.
– Thereafter, an additional 2% is added for each additional year.
– The maximum benefit rate is 75%.
– For male employees with a contribution period of 15 to under 20 years, they receive 40%, with an additional 1% for each additional year.
Female employees:
– Contributing 15 years of social insurance entitles them to 45%.
– Thereafter, an additional 2% is added for each additional year.
– The maximum benefit rate is 75%.
Case of early retirement due to reduced working capacity:
– A 2% reduction for each year of early retirement before the stipulated age.
– If the early retirement period is less than 6 months, there is no reduction in the pension benefit percentage; if it is from 6 months to under 12 months, a 1% reduction applies.
New Aspects in the Social Pension Scheme introduced by the social insurance policy 2025.
Addition of Social Pension Benefits for Those Without Pensions
Under the 2025 social insurance policy, the state will provide a monthly social pension to elderly individuals without a pension or those ineligible for social insurance benefits, provided they meet the following conditions:
(i) Aged 75 or older.
(ii) Not receiving a pension or monthly social insurance benefits, except as otherwise stipulated by the government.
(iii) Submitting a written request for social pension benefits.
Note: Vietnamese citizens aged 70 to under 75 from poor or near-poor households, meeting the conditions in clauses (ii) and (iii) above, are eligible for social pension benefits.
Reduction in the Age for Receiving Social Pension Benefits
The 2025 social insurance policy (2024 Social Insurance Law) stipulates a reduction in the age for receiving social pension benefits from 80 to 75 years for elderly individuals without pensions. Additionally, those aged 70 or older from poor or near-poor households will also be considered for this benefit.
2025 Social Insurance Policy Increases Benefits to Encourage Employees to Receive Pensions Instead of One-Time Withdrawals
To encourage employees to maintain participation in social insurance for pension benefits, the 2025 social insurance policy introduces additional benefits.
In cases where employees have ceased participating in social insurance, do not opt for a one-time withdrawal, and preserve their contribution period to continue participation, they have the opportunity to enjoy higher benefits such as:
- Receiving higher benefits for various schemes calculated based on contribution time (sickness, work accidents, occupational diseases, etc.) upon continued participation;
- Eligible for a pension under more favorable conditions;
- During the pension period, the social insurance fund covers health insurance;
- Eligible for a monthly allowance if not meeting pension conditions and not yet at the age for social pension benefits;
- During the monthly allowance period, the state budget covers health insurance.
CONCLUSION
The changes in the 2025 social insurance policy have a significant impact on the rights of employees and businesses. Timely awareness and understanding of the new regulations will help you and your business proactively plan finances and ensure social security benefits.
If you need further information or support regarding social insurance issues, please CONTACT us for timely and accurate advice.
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