The Social Security Law of 2024 has introduced significant changes that enhance pension opportunities for workers. One notable change is reducing the minimum required years of social security contributions from 20 to 15 years. This provision opens up opportunities for various groups, including those who joined late or intermittently.
Opportunities for Late Social Security Contributors
Under the new regulations, individuals who start contributing to social security between ages 45-47 or those with short-term specialized jobs now have the chance to receive monthly pensions and health insurance coverage. This reduces the number of workers receiving one-time benefits and encourages employees to retain their contribution periods for higher pensions.
Higher Pension Options
The 2024 Social Security Law also introduces supplementary retirement insurance, offering employers and employees additional options to contribute for higher pension benefits. This ensures a more stable income during retirement, enhancing financial security.
Reference Levels and Pension Adjustments
The law specifies a “reference level” used to calculate contributions and benefits for certain social security programs. Before the base salary is abolished, this reference level will be equal to the base salary. After abolition, it will not fall below the previous base salary and will be adjusted based on consumer price indices, economic growth, and government budget capacity.
Supplementary Social Pension Benefits
The 2024 Social Security Law includes supplementary social pension benefits guaranteed by the state budget. Vietnamese citizens aged 75 and above who do not receive regular pensions or social security benefits will be eligible for these supplements. Additionally, those aged 70 to under 75 from poor or near-poor households can also receive these benefits if they meet the criteria.
Monthly Allowances for Workers
The law also introduces monthly allowances for workers who do not qualify for pensions and are not yet eligible for social pension benefits. These allowances are determined based on the worker’s social security contribution period and are adjusted when the government modifies pension and social security benefits.
Conclusion
These changes in the 2024 Social Security Law not only increase pension opportunities but also ensure better rights and stability in retirement. Workers should familiarize themselves with the new regulations to maximize their benefits and prepare adequately for retirement.
Source: Dan Tri
