Pension
The Social Insurance Law provides retirement benefits to eligible employees. The general retirement age is 60 years for men and 55 years for women, with at least 20 years of insurance coverage. Beginning July 1, 2025, the normal retirement age will gradually rise 3 months a year for men and 4 months for women. Vulnerable groups may be exempt from the normal retirement age increases.
The monthly retirement pension of qualified employees is equivalent to 45% of the average monthly salary, corresponding to 15 years of contributions for females and 20 years for males, plus 2% for each additional year of paying social insurance contributions. The maximum pension rate is 75%. The benefit amount is reduced by 2% each year the pension is claimed before the insured's retirement age. Employees who have contributions exceeding the number of years corresponding to the 75% pension rate may also be entitled to a lump-sum allowance calculated as half a month's salary for each additional year of paid contributions.
Employees who have reached retirement age but have not made the required number of contributions may be entitled to a lump-sum retirement grant based on their average salary and the number of contributions made.
Dependents/Survivors Benefits
In Vietnam, survivors of a deceased insured employee are entitled to receive benefits:
- If the deceased employee had paid social insurance contributions for 15 years or more
- If the deceased person was on a retirement pension
- If the death was caused by a labor accident or an occupational disease
Eligible survivors include children under 18 years of age, surviving wives over 55 years, husbands over 60 years, and dependent parents. The monthly survivors pension for each relative is equal to 50% of the basic salary of the deceased employee, or 70% of the basic wage for relatives who have no guardians or parents.
In case of death caused by a labor accident or an occupational disease, the deceased employee's relatives are entitled to a lump-sum allowance equal to 36 times the basic salary.
Invalidity Benefits
Under the Social Insurance Law of Vietnam, employees are entitled to disability benefits if they have a disability that decreases their working capacity by 61% or more. The monthly pension is paid as 45% of the average monthly salary, corresponding to 15 years of contributions, plus 2% for men and 3% for women for each additional year of paying social insurance contributions. The pension is reduced by 2% for each year the pension is claimed before the insured's retirement age. The disability pension is replaced with an old-age pension after reaching retirement age.
The social insurance scheme also provides coverage in the case of labor accidents and occupational diseases. In case of temporary disability, employees are offered a daily allowance equal to their daily wages until full recovery. For permanent disability, an employee must have at least a 5% decrease in a working capacity to be eligible for benefits. Employees with a 5% to 30% decrease in working capacity receive a lump-sum benefit, while employees with a 31% or more reduction in working capacity receive a monthly pension.
There is a social assistance benefit for people who are severely disabled and do not qualify for a social insurance pension. An allowance of VND 500,000 (Vietnamese dongs) is paid per month to people with severe disabilities, VND 750,00 is paid to people with particularly severe disabilities, VND 1,250,000 per month is paid to people with extremely severe disabilities or the elderly with a severe disability.