Some changes in social insurance and health insurance policies in 2024 to note

1. Increase retirement age, change pension conditions

According to the roadmap in Article 169 of the 2019 Labor Code, the retirement age of employees under normal working conditions in 2024 is 61 years old for male employees and 56 years and 4 months old for female employees.

In 2023, the retirement age under normal conditions for male workers is 60 years and 9 months, and for female workers it is 56 years old.

The retirement age in 2024 will increase compared to 2023. Therefore, the conditions for receiving pension in 2024 of employees will also change.

Pursuant to the provisions of Article 54 of the 2014 Law on Social Insurance, amended by Point a, Clause 1, Article 219 of the 2019 Labor Code, employees participating in compulsory social insurance under normal working conditions are entitled to pension if they fall into the prescribed cases and meet one of the conditions on retirement age.

Specifically, male workers are 61 years old and female workers are 56 years and 4 months old.

2. Increase pensions and social insurance benefits

According to Resolution 104/2023/QH15 dated November 10, 2023 on the state budget estimate for 2024, from July 1, 2024, a comprehensive reform of the wage policy will be implemented according to Resolution 27-NQ/TW in 2018 of the 7th Conference of the 12th Central Executive Committee.

At the same time, adjust pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and some social security policies currently linked to the basic salary.

This means that pensions, social insurance benefits, monthly allowances... will also be adjusted to increase from July 1, 2024.

3. Adjustment of social insurance benefits, monthly benefits

According to the Social Insurance Law 2014, social insurance benefits are calculated based on the basic salary.

For example, one-time allowance for childbirth, post-natal care allowance, post-sickness care allowance, funeral allowance, monthly death allowance.

When implementing salary reform, there will be no more salary coefficient and basic salary. Accordingly, the above social insurance allowances will also change. Based on Resolution 104/2024, these allowances will be increased from July 1, 2024.

The Government is currently proposing subsidies linked to the base salary equal to the current highest level and specified in a specific amount.

Accordingly, Postpartum and illness allowance: 540,000 VND/day, one-time allowance upon childbirth: 3.6 million VND/child...

4. Change the way the minimum pension is calculated

Clause 5, Article 56 of the Law on Social Insurance 2014 stipulates that the lowest pension level when participating in compulsory social insurance is equal to the basic salary.

Currently, the basic salary is 1.8 million VND, so the lowest pension is 1.8 million VND/month.

From July 1, 2024, the abolition of basic salary will have documents regulating or guiding how to determine the lowest pension level at this time.

5. Change in health insurance contribution level

Point e, Clause 1, Article 7 of Decree 146/2018/ND-CP stipulates the monthly family health insurance premium as follows:

- The first person contributes 4.5% of the basic salary;

- The second, third and fourth persons pay 70%, 60% and 50% of the first person's contribution respectively;

- From the fifth person onwards, the contribution is 40% of the first person's contribution.

For students, the monthly health insurance premium is equal to 4.5% of the basic salary (the state budget supports 30%, students pay 70%).

From July 1, 2024, salary reform will be implemented, and the basic salary will be abolished. Therefore, from this point on, there will be new instructions on the contribution and benefit levels for family and student health insurance.

6. Change in social insurance price index coefficient 2024

The Ministry of Labor, War Invalids and Social Affairs will announce a social insurance inflation coefficient (the adjustment level of salary and income for which social insurance has been paid) for the following year at the end of the year.

Currently, the social insurance price slippage coefficient is implemented according to Circular No. 01/2023/TT-BLDTBXH applicable to subjects participating in compulsory and voluntary social insurance.

At this time, there is no information about the social insurance price index for 2024, but if this index increases compared to 2023, the one-time social insurance benefits, monthly pension, one-time retirement allowance or one-time death benefit will also increase.

7. Changes in one-time medical examination and treatment costs are covered 100%

Currently, if the cost of a medical examination is lower than 15% of the basic salary (lower than VND 270,000), health insurance participants will be paid 100% of the cost.

From July 1, 2024, when the basic salary is abolished, this cost will also change and have specific instructions.