The 2024 Law on Social Insurance, passed by the National Assembly and effective from 01 July 2025 (“2024 LOSI“), replaces the 2014 Law on Social Insurance (“2014 LOSI“) with 2 additional chapters and 16 articles. This represents a significant advancement in refining the legal framework for social insurance (“SI“) to ensure the rights of SI participants and enhance management efficiency. Alongside this, Decree No. 158/2025/ND-CP dated 25 June 2025 (“Decree 158“), Decree No. 159/2025/ND-CP dated 25 June 2025 (“Decree 159“), and Decree No. 274/2025/ND-CP dated 16 October 2025 (“Decree 274“) have also been issued to guide the practical implementation of the 2024 LOSI.
Some notable new points of the 2024 LOSI are as follows:
1. Expanding the scope of participants and beneficiaries of SI regimes
The 2024 LOSI expands the scope of mandatory SI participation to individuals with stable and regular employment and income, such as: registered business household owners, non-specialized officials at various levels, part-time employees, enterprise managers, controllers, representatives of state capital or enterprise capital, and certain elected management positions in cooperatives and cooperative alliances who do not receive salaries…[1]
The above provisions aim to align with changes in labor relations, employees’ living conditions, and socio-economic development in each period and phase; the decision-making authority lies with the National Assembly Standing Committee, based on proposals from the Government.[2]
2. Provisions on the “reference level” for calculating SI benefits
The 2024 LOSI stipulates the “reference level” used as the basis for calculating contributions and benefits for certain SI regimes. The reference level is determined by the Government and adjusted based on increases in the consumer price index, economic growth, in line with the state budget capacity and the SI fund.[3]
Currently, while the base salary has yet to be abolished, the above reference level equals the base salary. Once the base salary is abolished, the reference level must not be lower than said base salary.[4]
3. Addition of new benefit regimes – forming a multi-tiered SI system
The 2024 LOSI notably adds the social retirement allowance regime, applicable to citizens meeting the criteria: (i) aged 75 (seventy five) or older, or 70 (seventy) or older if belonging to poor or near-poor households; (ii) not receiving pension or monthly SI allowance.[5] The social retirement allowance builds on and develops from existing monthly social allowance provisions and is a form of SI funded by the state budget, aimed at protecting elderly and vulnerable groups in society.
At the same time, the Law also provides for monthly allowances and health insurance for employees reaching retirement age but not qualifying for pensions and not yet eligible for social retirement allowances.[6]
It can be seen that the 2024 LOSI is gradually refining and building a multi-tiered SI system with provisions for social retirement allowances, mandatory SI, voluntary SI, supplementary retirement insurance, to maximize the assurance of rights for all people and especially protect vulnerable groups in society.
4. Pension eligibility – increased benefits to encourage employees
Accordingly, the 2024 LOSI increases opportunities for SI participants to receive pensions by reducing the minimum participation period from 20 (twenty) years to 15 (fifteen) years, with the pension level corresponding to the number of contribution years.[7] This provision creates significant opportunities for those who start participating in SI late, do not participate continuously, or have jobs with short professional durations.
Additionally, the 2024 LOSI made adjustments to increase benefits, encouraging employees to preserve their contribution time to receive pensions instead of taking the lump-sum SI. Specifically, when preserving contribution time to continue participating in SI, employees have opportunities for higher benefits, such as easier pension eligibility conditions, health insurance contributions by the SI Fund during pension receipt, monthly allowances when not qualifying for pensions and not yet eligible for social retirement allowances, state budget-funded health insurance during monthly allowance periods, and opportunities for credit support policies for employees with contribution history who lose jobs…[8]
5. New provisions on lump-sum SI policy
Specifically, for those who have been participating in mandatory SI before 01 July 2025, after 12 (twelve) months not subject to mandatory SI and also not participating in voluntary SI, with contribution time under 20 (twenty) years, they may receive lump-sum SI.[9]
However, for those first participating in mandatory SI from 01 July 2025 onward, lump-sum SI is only available in special cases such as: reaching pension age but lacking sufficient contribution time, emigrating abroad, suffering from incurable diseases, severe disabilities, etc.[10]
The above provisions are built on the policy of encouraging employees to continue participating in SI to ensure long-term social security, reduce the burden on the state budget and society. However, to avoid major disruptions in the system, the law does not completely prohibit lump-sum SI withdrawals but instead tightens eligibility conditions while encouraging employees to preserve contribution time for retirement benefits as outlined in Section 4 above. Accordingly, SI participants should pay special attention to these provisions to correctly understand lump-sum SI withdrawals and avoid cases of anxiety leading to resignation just to claim lump-sum SI.
6. Creating more favorable conditions for SI participants and beneficiaries
The 2024 LOSI adds numerous provisions to create greater convenience for SI participants and beneficiaries, ensuring long-term social security and improving future quality of life. For example:
Adjustments to SI documentation and transactions
The 2024 LOSI supplements provisions on electronic transactions in the SI sector, while also adjusts and simplifies documentation and procedures for SI implementation, thus improving convenience for SI participants.
Better protection of employees’ rights
Adjustments to employee rights provisions align with practical realities and ensure feasibility, specifically: (i) Addition of sick leave benefits for cases of partial-day sick leave;[11] (ii) Employees receive health insurance contributions from the SI Fund during sick leave or maternity leave periods of 14 (fourteen) or more working days per month;[12] (iii) Addition of maternity benefit eligibility for infertility treatment leave or cases where the child dies after birth;[13] (iv) Amendments to age conditions for dependents receiving monthly death benefits, etc.[14]
Expanding preferential policies for voluntary SI participants
Voluntary SI is a state-organized form of SI aimed at universal social security coverage. Accordingly, allowing people to choose contribution levels and methods with improving benefits is seen as a major step toward comprehensive SI coverage in the future.
Decree 159, guiding the 2024 LOSI, provides support for voluntary SI contributions to certain groups such as poor and near-poor households, residents of island communes, special zones, ethnic minorities, and others; with support levels ranging from 20% to 50% based on monthly voluntary SI contributions standard for rural poor household.[15]
Notably, the 2024 LOSI adds maternity benefits for voluntary SI participants: Female employees giving birth or male employees whose wives give birth, if having participated for at least 6 (six) months within the 12 (mười hai) months prior to birth, shall receive VND 2 million per child and may qualify for additional support in cases like poor households or ethnic minorities, etc.[16]
These provisions are measures with breakthrough significance, increasing the appeal of voluntary SI, reducing financial burdens, and encouraging greater public participation.
7. Clarifying provisions on SI collection and contribution management – enhancing legal compliance and protecting employees’ rights
The 2024 LOSI clarifies criteria for identifying and handling two common violations: “late contributions” and “evasion of contributions” to mandatory SI, not only strengthening legal compliance but also ensuring employees’ legitimate rights and interests.[17]
Notably, the Law empowers the Government to detail additional acts considered evasion or not considered evasion due to legitimate reasons, to promptly address objective real-world situations and potential tactics to avoid obligations.[18]
Additionally, the Law clarifies the responsibilities of provincial People’s Committees: directing and organizing SI policy implementation locally, expanding the number of mandatory and voluntary SI participants, while also monitoring and handling cases of late or evaded contributions.[19]
Accompanying innovations in the legal system are always challenges in application, with expectations for feasibility, longevity, and practical synchronization. Accordingly, the notable new points of the 2024 LOSI are seen as a new step forward in social security, with expectations to ensure and enhance the quality of social security for the people in the future.
[1] Paragraph 1 Article 2 of the 2024 LOSI
[2] Paragraph 6 Article 2 of the 2024 LOSI
[3] Article 7 of the 2024 LOSI, Article 5 of Decree 158
[4] Paragraph 13 Article 141 of the 2024 LOSI
[5] Articles 21, 22 of the 2024 LOSI
[6] Point b Paragraph 2 Article 10, Article 23 of the 2024 LOSI, Chapter IV of Decree 158, Article 14 of Decree 159
[7] Article 64, Article 66 of the 2024 LOSI
[8] Paragraph 2 Article 6, Article 23, Article 119 of the 2024 LOSI
[9] Point dd Paragraph 1 Article 102 of the 2024 LOSI
[10] Paragraph 1 Article 102 of the 2024 LOSI
[11] Paragraph 5 Article 45 of the 2024 LOSI
[12] Point b Paragraph 2 Article 10 of the 2024 LOSI
[13] Paragraph 5 Article 50, Paragraph 4 Article 53 of the 2024 LOSI
[14] Paragraph 2 Article 86 of the 2024 LOSI
[15] Paragraph 1 Article 5 of Decree 159
[16] Paragraph 2 Article 50, Paragraph 1 Article 95 of the 2024 LOSI
[17] Article 38, Paragraph 1 Article 39 of the 2024 LOSI
[18] Articles 38, 39, 40, 41 of the 2024 LOSI, Article 4 of Decree 274
[19] Paragraph 1 Article 138 of the 2024 LOSI
