NEW POINTS OF THE AMENDED LAW ON SOCIAL INSURANCE 2024
NEW POINTS OF THE AMENDED LAW ON SOCIAL INSURANCE
Law No. 41/2024/QH15 dated June 29, 2024, effective from July 1, 2025
Pham Thi Bich Van
Head of Communications Department of Binh Duong Provincial Social Insurance
NEW POINTS OF THE AMENDED LAW ON SOCIAL INSURANCE
- Supplementing social pension benefits to form a multi-layered social insurance system
Social pension is a type of social insurance guaranteed by the state budget for the elderly who meet the following conditions:
– People aged 75 and over who do not receive pensions or social insurance benefits.
– People from poor and near-poor households from 70 years old to under 75 years old, not receiving pension or social insurance benefits.
- Supplementing regulations to increase the connection between social pension benefits and basic social insurance
Supplement monthly allowance for employees who are not eligible for pension and are not old enough to receive social pension.
People who are old enough to retire but do not have enough time to pay to receive pension (less than 15 years of payment) and are not old enough to receive social pension benefits (not old enough to 75 years old).
- Expanding the number of social insurance participants
– Business owners; business managers, cooperative managers do not receive salaries.
– Employees who sign a labor contract with a term of 01 month or more but do not work full-time.
– Non-professional workers at commune, village and residential group levels.
– Standing militia.
- Add maternity benefits to the voluntary social insurance policy
Voluntary social insurance participants who meet the prescribed conditions are entitled to maternity benefits of VND 2 million for each newborn child, guaranteed by the state budget; employees do not have to pay more than current regulations.
- Reduce the minimum number of years of social insurance contributions to receive pension
Employees who reach retirement age and have paid social insurance for 15 years or more are entitled to receive a monthly pension.
Note: This provision does not apply to pensioners with reduced working capacity.
- Supplementing regulations on handling late payment and evasion of social insurance payment
– Required to pay the full amount of late or evaded social insurance .
– Pay an amount equal to 0.03%/day calculated on the amount of late payment, evasion of payment and the number of days of late payment, evasion of payment.
– Penalize administrative violations according to the provisions of law.
– Do not consider awarding emulation titles or forms of rewards.
– For the act of evading payment, there are also strong measures to prosecute criminal liability according to the provisions of law.
In addition, to ensure the rights of employees , employers must compensate employees if they do not participate or do not participate fully or promptly in compulsory social insurance, causing damage to the legitimate rights and interests of employees.
- Conditions for receiving one-time social insurance
– Old enough to receive pension but not yet 15 years of social insurance contributions.
– Go abroad to settle down.
– People suffering from one of the following diseases: cancer, paralysis, decompensated cirrhosis, severe tuberculosis, AIDS.
– People with a labor capacity reduction of 81% or more; people with especially severe disabilities.
– Employees who have paid social insurance before July 1, 2025, after 12 months are not subject to compulsory social insurance but also do not participate in voluntary social insurance and have paid social insurance for less than 20 years.
Employees who have paid social insurance before July 1, 2025 , if after 12 months they do not participate in compulsory or voluntary social insurance and the social insurance payment period is less than 20 years, can withdraw social insurance one time .
Employees who have paid social insurance after July 1, 2025 cannot withdraw social insurance at one time.
- Supplemental provisions on supplementary pension insurance
The Supplementary Pension Insurance Fund and the state’s policy on Supplementary Pension Insurance create conditions for employers and employees to have more choices to participate in contributions to receive higher pensions .
- Specific regulations on reference levels to replace basic salaries from July 1, 2025
The reference level is the amount of money decided by the Government to be used to calculate the contribution and benefit levels of some social insurance regimes.
The reference level is adjusted based on the increase in the consumer price index, economic growth, in accordance with the capacity of the state budget and social insurance fund.
– The one-time subsidy for each child is equal to 02 times the reference level .
– The benefit level for one day of rest and recovery due to illness or maternity is 30% of the reference level.
– The funeral allowance is 10 times the reference level.
– Monthly pension benefit is 50% of reference level.
– The monthly allowance is 70% of the reference level if there is no direct caregiver.
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“The article’s content refers to the regulations that were applicable at the time of its creation and is intended solely for reference purposes. To obtain accurate information, it is advisable to seek the guidance of a consulting lawyer.”
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