Treasure Every Penny
Mrs. Nguyễn Thị Quý, aged 75, and her 77-year-old husband from Khoái Châu, Hưng Yên, were once construction workers. They retired in 1990 due to difficult working conditions and declining health. After retirement, they received a one-time social insurance benefit and became self-employed, but their income was unstable and they had no savings.
In her later years, Mrs. Quý relied on small plots of land and support from her children. Without a pension, her life has been challenging. According to Hưng Yên province’s policy, she and her husband receive free monthly healthcare insurance. However, under current laws, they are not yet eligible for additional benefits as they are not yet 80 years old.
Elderly citizens receiving pensions and monthly allowances (Photo: Ngô Hùng).
With the new Social Insurance Law 2024 taking effect on July 1st, Mrs. Quý is thrilled to learn that she and her husband will be eligible for a social pension earlier than expected. Currently, she would have had to wait five more years, while her husband three more. In just a few months, both will receive 500,000 VND per month.
Though modest, this amount is precious for couples like hers who have no other income. Mrs. Quý and her husband are among the approximately 1.5 million people aged 75 to 80 who will benefit from the new social pension scheme.
At 500,000 VND per person per month, the Ministry of Labor, Invalids, and Social Affairs estimates the annual cost at 9.046 trillion VND. The additional funding for 2025 (effective July 1st) is 4.5 trillion VND, with an estimated total of 40.5 trillion VND for the 2025-2030 period.
The Ministry acknowledges that while the living standards of the elderly have improved, most still lack savings and rely heavily on their children. About 73% of Vietnamese seniors do not have a pension or monthly social security benefits, facing significant hardships.
To ensure better support for the elderly, the government issued Decree No. 76/2024/ND-CP on July 1st, 2024, amending and supplementing some provisions of Decree No. 20/2021. This decree sets the social assistance standard at 500,000 VND per month for those eligible.
Building a Multi-tiered Safety Net
Ms. Nguyễn Thị Lan Hương, former Director of the Institute of Labor Science and Social Affairs at the Ministry of Labor, Invalids, and Social Affairs, noted that integrating social pensions into the social insurance system forms a multi-tiered safety net. This approach ensures comprehensive elderly support for workers.
The draft decree specifies the conditions for receiving social pensions, including being at least 75 years old, not receiving any other pension benefits, and having submitted a formal request. Those in poor households can apply from age 70.
For cases where recipients also qualify for other social assistance programs, they receive the higher benefit. Recipients’ families also receive 10 million VND for funeral expenses upon death.
Integrating social pensions into the social insurance system to build a multi-tiered safety net (Illustration: Ngô Hùng).
