Vietnam’s government is moving forward with a series of reforms to its social insurance and retirement policies, with the Ministry of Home Affairs recently responding to widespread public concern over social welfare, retirement age, and minimum wage. The Ministry’s detailed answers, issued on October 12, 2025, shed light on the country’s evolving approach to labor rights and social protection, and reflect a growing effort to balance economic realities with the needs of its aging population and workforce.
These responses come in the wake of recommendations from voters in Quang Ngai province, who, after the ninth session of the 15th National Assembly, called on the Ministry of Home Affairs to review and update regulations on social insurance, retirement age, workers’ rights, and regional minimum wages. Their aim: to ensure that these policies keep pace with Vietnam’s rapid socio-economic development and to broaden the safety net for vulnerable citizens.
According to Tuoi Tre, Minister of Home Affairs Pham Thi Thanh Tra explained that the issue of retirement age had been meticulously discussed at the 7th Central Executive Committee meeting of the 12th tenure. The outcome of these deliberations was enshrined in Resolution 28/2018, which set out a roadmap for reforming the nation’s social insurance system. This was later formalized in the Labor Code 2019, which includes specific provisions on retirement age and pension eligibility in Articles 169 and 219.
Rather than implementing an abrupt increase, the government opted for a gradual adjustment to the retirement age. Each year, the retirement age for men increases by three months, and for women by four months, until reaching 62 years for men by 2028 and 60 years for women by 2035. This approach, as Minister Tra noted, was carefully considered to account for the diverse conditions faced by workers across the country. For those with reduced labor capacity, or those engaged in particularly strenuous, hazardous, or toxic jobs—or working in economically disadvantaged regions—the law allows for earlier retirement than the standard age. This flexibility is preserved in the 2024 Social Insurance Law, which ensures consistency with the Labor Code’s provisions.
Voters also pressed for reforms to minimum wage policies. In response, Minister Tra revealed that the Ministry of Home Affairs is drafting a decree to raise the regional minimum wage by an average of 7.2% compared to current levels, effective from January 1, 2026. This proposal is based on the National Wage Council’s recommendations and is expected to be submitted to the government in October 2025. The minimum wage, as stipulated in the Labor Code, is the lowest salary paid to workers performing the simplest jobs under normal conditions, designed to ensure a minimum standard of living for workers and their families while aligning with the country’s economic development.
The Ministry’s response, highlighted in a separate official document, also addressed broader concerns about social insurance and protections for the elderly. As reported by Tuoi Tre, the Ministry emphasized that the new Social Insurance Law No. 41/2024/QH15 introduces substantial amendments to institutionalize reforms outlined in Resolution 28-NQ/TW and to resolve longstanding issues with the previous 2014 law. Notably, the new law expands compulsory social insurance coverage to additional groups and lowers the minimum contribution period required to qualify for a pension from 20 years to 15 years. This change is designed to give more workers access to pension benefits, especially those who may have struggled to meet the previous threshold.
In addition, the Ministry, in coordination with other government bodies, has developed Decree No. 159/2025/ND-CP to guide the implementation of voluntary social insurance. This decree increases government support for voluntary contributions by 1.5 to 2 times previous levels, making it more attractive for informal and non-traditional workers to participate in the social insurance system.
Social protection for the elderly is another area where the government has taken recent action. The Social Insurance Law now stipulates that Vietnamese citizens who do not receive a pension or monthly social insurance benefit can qualify for a social retirement allowance starting at age 75, or at age 70 for those in poor or near-poor households. Decree No. 176/2025/ND-CP provides detailed guidance on the implementation of these social retirement benefits.
Lowering the age threshold and expanding eligibility for social retirement benefits, the Ministry stated, is a significant effort by the Party and State, especially given ongoing budget constraints. This move demonstrates the government’s deep commitment to social welfare, even as it must carefully weigh the sustainability and feasibility of such policies. The Ministry underscored that any further reductions in the age threshold for social assistance must be considered within the broader context of social welfare policy, the capacity of the state budget at any given time, and the potential socio-economic impacts. This cautious approach is codified in Article 21, Clause 3 of the Social Insurance Law, which grants the National Assembly Standing Committee the authority to gradually adjust the age for social retirement benefits based on government proposals and in line with the nation’s economic and fiscal conditions.
The government has also empowered local authorities to respond to unique regional needs. Under Decree No. 76/2024/ND-CP, provincial People’s Committees may propose higher social assistance levels or expand beneficiary groups in cases where local socio-economic conditions justify such measures. This decentralized approach allows for targeted support where it is needed most, while maintaining overall policy coherence.
Minister Tra’s responses reflect a delicate balancing act: expanding social protections and improving living standards for workers and the elderly, while ensuring that reforms are economically sustainable. The gradual increase in retirement age, the expansion of social insurance coverage, and the planned minimum wage hike are all part of a broader strategy to modernize Vietnam’s social safety net without jeopardizing fiscal stability.
Still, the government acknowledges the challenges ahead. As the population ages and the workforce diversifies, ensuring adequate pensions and social assistance will require ongoing adjustments and careful monitoring. The Ministry has signaled its willingness to revisit these policies as conditions evolve, with a strong emphasis on data-driven evaluation and public consultation.
For now, Vietnam’s latest reforms mark a significant step forward in social policy, promising greater inclusion and security for millions of workers and retirees. As these changes take effect, the true test will be how well they meet the needs of citizens—and whether they can adapt to the country’s dynamic social and economic landscape.
