On 29 June 2024, the National Assembly passed Social Insurance Law No. 41/2024/QH15. The revised Social Insurance Law 2024 will take effect on 1 July 2025 and will replace Social Insurance Law No. 58/2014/QH13 and Resolution No.93/2015/QH13 on the implementation of the policy on one-time social insurance benefits for employees.
With 141 articles arranged in 11 chapters, the Law introduces key changes to compulsory participation, retirement benefits, maternity support, and compliance measures. These updates reflect the Vietnamese government’s continued efforts to improve the national social security system and align it more closely with socio-economic developments. These amendments also aim to adopt international standards and ensure the future of the country’s rapidly aging population.
As a trusted provider of accounting, tax, and legal advisory services, RBA WTS Vietnam is committed to keeping our clients informed of these legislative developments and their implications for business operations and employee welfare. Below, we outline the major updates under the new law, providing clarity on how these changes may impact your business or personal circumstances.
| No | Items | Social Insurance Law 2024 | Social Insurance Law 2014 |
| 1 | Compulsory participants | Expanding the scope of compulsory social insurance to include additional participants who are Vietnamese citizens: • Registered business household owners. • Managers and representatives in enterprises and cooperatives. • Non-professional workers at local levels and standing militia. • Part-time employees earning at least the minimum salary for compulsory social insurance. • Jobs with different titles but involving wages and management duties. | Not specified those participants |
| 2 | Social retirement benefits | Introduce a new social retirement benefit for Vietnamese citizens as below: • Citizens aged 75 or older who do not receive a monthly pension or social insurance allowance. • Citizens aged 70 to under 75 from poor or near-poor households, meeting conditions in Article 21, are also entitled to a state-funded social pension benefit. Monthly social retirement benefits will be determined by the Government based on socio-economic development and state budget capacity. The Government will review and consider adjustments every three years. | Not specified |
| 3 | Minimum number of years to receive a pension | As per Article 64, Employees who have reached the retirement age and have paid social insurance for 15 years or more are entitled to a monthly pension. | 20 years as per Article 54 |
| 4 | Lump-sum social insurance allowance | As per Article 70, conditions for receiving a lump-sum social insurance allowance include: • reaching retirement age but having paid social insurance for less than 15 years. • having joined social insurance before the effective date of this Law, paid contributions for less than 20 years, and not participating in voluntary social insurance for 12 consecutive months after leaving the compulsory scheme. | As per Article 60, conditions for receiving a lump-sum social insurance allowance include: • reaching retirement age but having paid social insurance for less than 20 years; or • will not receive lump-sum social insurance under this condition |
| The employee may choose between receiving a lump-sum social insurance allowance or monthly allowances under Article 23 of this Law. | Only lump-sum social insurance allowance applied. | ||
| 5 | Maternity benefit for voluntary social insurance participants | Individuals are eligible for maternity benefits if they have paid social insurance premiums for at least 6 months within the 12 months before childbirth: a) Female employees giving birth. b) Male employees whose wives give birth. The maternity benefit shall be 2.000.000 VND for each child being born | Not available |
| 6 | Handling violations of evading social insurance contributions | The 2024 Law clarifies the distinction between “late payment” and “evasion” to ensure accurate legal handling. | Not specified |
| As per Article 34, deadlines for compulsory social insurance payment are as follows: • The last day of the succeeding month for monthly payment; • The last day of the month succeeding the payment cycle for quarterly or biannual payment; | Decision 505/QD-BHXH (2020), the deadlines for compulsory social insurance payments for employers are: • Monthly Payment: No later than the last day of the month. • Payment Every 3 or 6 Months: No later than the last day of the payment period. | ||
| As per Articles 40 and 41, if an employer delays or evades social insurance payments, they must pay the arrears plus interest of 0.03% per day. | As per Article 122, employers who delay or evade social insurance payments for 30 days or more must pay the full unpaid amount plus interest, which is twice the average SI fund investment interest rate of the previous year. |
The amendments to the Social Insurance Law present both opportunities and compliance responsibilities for employers and individuals alike. Businesses are encouraged to review their human resources and payroll practices to ensure alignment with the new requirements. RBA WTS Vietnam stands ready to support you in navigating these changes, providing expert guidance and practical solutions tailored to your needs. For further clarification or personalized consultation, please contact us.
Disclaimer: This summary is for informational purposes only and does not constitute legal advice. Consult a professional for specific recommendations.
