In 2024, increase retirement age and social insurance benefits

Increase retirement age

According to the provisions of the 2019 Labor Code, from January 1, 2024, the retirement age for male workers under normal conditions is 61 years old, and for female workers is 56 years and 4 months. According to the roadmap for increasing the retirement age, in 2023, the retirement age for men is 60 years and 9 months and for women is 56 years old.

Employees participating in compulsory social insurance will receive pension when they have paid social insurance for 20 years or more and reach the adjusted retirement age.

For female workers retiring in 2024, the monthly pension rate is calculated at 45% corresponding to 15 years of social insurance contributions, then 2% is added for each additional year of social insurance contributions. The maximum benefit is 75% of the average monthly salary for social insurance contributions.

For male workers retiring in 2024, the monthly pension rate is calculated at 45% corresponding to 20 years of social insurance contributions, then 2% is added for each additional year of social insurance contributions. The maximum benefit is 75% of the average monthly salary for social insurance contributions.

Increase pensions and social insurance benefits

According to Resolution 104 approved by the National Assembly on the 2024 state budget estimate, from July 1, a comprehensive reform of the salary policy will be implemented according to Resolution 27/2018 of the 12th Central Executive Committee, adjusting pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and a number of social security policies currently linked to the basic salary.

However, to determine how much the pension will increase in 2024, we are waiting for detailed regulations from the Government.

The Ministry of Labor, War Invalids and Social Affairs said it will try to advise so that the pension level increases by at least 15% compared to the salary of civil servants; for public employees, it will increase by 23.5%; and raise the standard social allowance level from 360,000 VND/month to 500,000 VND/month or 750,000 VND/month.

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/month, so the lowest pension is also this amount. However, from July 1, 2024, the basis for determining the pension level will change with the abolition of the basic salary.

In addition, with the draft revised Social Insurance Law expected to be passed in 2024, there will be adjustments to social insurance benefits such as childbirth allowance, postpartum recovery, post-sickness recovery, and monthly death benefits.

Change in health insurance contribution level

Currently, the family health insurance contribution rate is as follows: The first person in the household will pay 4.5% of the basic salary; the second, third, and fourth persons will pay 70%, 60%, and 50% of the first person's contribution rate, respectively; from the fifth person onwards, the contribution rate is 40% of the first person's contribution rate.

For students, the monthly health insurance contribution is 4.5% of the basic salary, of which the budget supports 30%.

However, from 1/7/2024, the salary system will be reformed, removing the current basic salary. This may lead to a review and new guidance on health insurance contribution and benefits for subjects such as households and students, reflecting the flexibility and adaptability of the policy to socio-economic realities.