People without pensions are entitled to social pension benefits when they retire.

The draft amended Law on Social Insurance submitted by the Ministry of Labor, War Invalids and Social Affairs (MOLISA) to the Government stipulates that Vietnamese citizens are entitled to social pension benefits when they meet the following conditions: Being 75 years old or older; not receiving pension or monthly social insurance benefits; not receiving monthly social benefits according to Government regulations.

Vietnamese citizens from 70 to under 75 years old, from poor households or near-poor households residing in particularly difficult communes and villages and meeting regulations, are entitled to social pension benefits.

The monthly social pension allowance level is prescribed by the Government in accordance with socio-economic development conditions and the capacity of the State budget at each period.

In case the subjects prescribed by this Law are receiving a monthly social allowance higher than the social retirement allowance, they will only receive the highest level.

Depending on socio-economic conditions, budget balance ability, combined with mobilizing local social resources, the Provincial People's Committee shall submit to the People's Council of the same level a decision on additional support for social pension beneficiaries.

People receiving monthly social pension benefits have their health insurance paid for by the State budget according to the provisions of law; when they die, the organization or individual in charge of the funeral will receive support for funeral expenses according to the regulations on the elderly.

Monthly benefits for retirees who are not eligible for pension

The draft revised Law on Social Insurance also stipulates the regime for employees who are not eligible for pension and are not old enough to receive social retirement benefits.

Specifically, Vietnamese citizens who are of retirement age but are not eligible for pension according to regulations and are not eligible for social pension benefits (under 75 years old) but have paid social insurance, if they do not receive one-time social insurance or reserve it if requested, will receive monthly benefits from their own contributions according to regulations.

The duration of monthly benefit depends on the total contribution period and the basis for social insurance contribution of the employee.

Subjects who have a period of receiving monthly benefits but have not yet reached the time of receiving social retirement benefits, if they wish, can make a one-time payment for the remaining time to receive benefits until they meet the prescribed conditions.

The monthly benefit is calculated at least equal to the prescribed social pension benefit level.

In case the total amount calculated based on the payment period and the basis for social insurance payment of the employee is higher than the monthly allowance for the period from retirement age to social pension age, the employee will receive a higher monthly allowance.

In case an employee is receiving a monthly allowance and the Government adjusts the social pension allowance level higher than the monthly allowance level, the employee will be adjusted to receive a monthly allowance equal to the social pension allowance level.

If a person receiving monthly benefits passes away, the employee's relatives will receive a one-time benefit for the months not yet received and a funeral benefit if they meet the conditions prescribed by the Law on Social Insurance.

People who are receiving monthly benefits have their health insurance paid for by the State budget.

It is expected that the total number of people benefiting from this policy will increase to over 800,000 people due to the reduction in age and about 300,000 people due to the linking of the social pension level with the basic social insurance level (compulsory and voluntary social insurance).

Mr. Pham Minh Huan, former Deputy Minister of Labor, Invalids and Social Affairs, said that along with reducing the age from 80 to 75 as proposed in the draft revised Law on Social Insurance, the pension level must also be increased.

Currently, the monthly pension benefit for non-pensioners aged 80 and over is 360,000 VND/month.

This figure is considered low. Therefore, along with salary reform, the Ministry of Labor, Invalids and Social Affairs proposed to increase the social allowance standard from 360,000 VND to 500,000 VND/month or 750,000 VND/month.