Increase lump sum benefit upon retirement

In 2025, the retirement age for male workers is 61 years and 3 months, and for female workers is 56 years and 8 months.

According to the provisions of the Law on Social Insurance 2014, from January 1, 2025 to June 30, 2025, the monthly pension of employees who meet the age requirements and the number of years of voluntary social insurance contributions is calculated at 45% of the average monthly income of social insurance contributions and corresponding to the number of years of social insurance contributions.

Specifically, male workers who pay social insurance for 20 years and female workers who pay social insurance for 15 years will receive 45% of the average monthly income paid for social insurance. After that, for each additional year of social insurance payment, workers will receive an additional 2%; the maximum level is 75%.

In addition to receiving a pension, employees are also entitled to a one-time subsidy upon retirement. Accordingly, employees whose social insurance contributions exceed the number of years corresponding to the pension rate of 75%, upon retirement, in addition to their pension, are also entitled to a one-time subsidy.

The one-time subsidy is calculated based on the number of years of social insurance contributions higher than the number of years corresponding to the pension rate of 75%. Each year of social insurance contributions is calculated as 0.5 of the average monthly income of social insurance contributions.

According to the provisions of the Law on Social Insurance 2024, effective from July 1, 2025, the minimum voluntary social insurance payment period has been reduced from 20 years to 15 years to be eligible for pension. The Law on Social Insurance 2024 also increases the one-time pension level upon retirement.

Specifically, the monthly pension for female workers is equal to 45% of the average income used as the basis for social insurance contributions corresponding to 15 years of social insurance contributions, then for each additional year of contributions, an additional 2% is calculated, with a maximum of 75%.

The monthly pension for male workers is equal to 45% of the average income used as the basis for social insurance contributions, equivalent to 20 years of social insurance contributions, then 2% is added for each additional year of contributions, up to a maximum of 75%.

Male workers with social insurance payment period from 15 years to less than 20 years, monthly pension is equal to 40% of average income used as basis for social insurance payment corresponding to 15 years of social insurance payment, then for each additional year of payment, 1% is added.

Regarding the one-time pension, the Social Insurance Law 2024 stipulates that male workers with more than 35 years of social insurance contributions and female workers with more than 30 years of insurance contributions will receive a one-time pension in addition to their pension when they retire.

Accordingly, from July 1, 2025, the one-time subsidy will be calculated as follows:

Case 1:Employees receive pension benefits at retirement age: The one-time benefit level is equal to0.5 timesAverage salary used as basis for social insurance contributions for each year of contribution higher than the regulation until retirement age.

Case 2:Employees who are eligible for pension and continue to pay social insurance: The subsidy level is equal to2 timesThe average salary used as the basis for social insurance contributions for each year of contribution is higher than the prescribed number of years.

Thus, the Social Insurance Law 2024 has increased the one-time pension allowance compared to current regulations for employees who are eligible for pension but continue to pay social insurance to encourage employees to continue working and paying social insurance after retirement age.