To increase long-term participation, Vietnam will introduce new social insurance laws from 1 July.
Under the new social insurance law, workers who stop participating in social insurance can claim a lump-sum payout only if they meet specific conditions. The changes aim to increase long-term participation in the social insurance system and encouraging workers to opt for pensions instead of lump-sum payments.
These include reaching retirement age with less than 15 years of contributions, emigrating from Vietnam, suffering from serious illnesses such as cancer or AIDS, experiencing a work capacity reduction of 81% or more, or having severe disability. Those workers who have paid compulsory social insurance for under 20 years, before the law takes effect, and did not join the voluntary scheme within 12 months will also qualify.
The new law offers several incentives for workers who choose to reserve their contribution period and continue with the scheme. These include eligibility for higher benefits, relaxed pension requirements, health insurance coverage during pension years, and monthly allowances for those who fall short of pension criteria. The state will also cover health insurance costs during the period of receiving these monthly allowances.