Starting July 1, 2025, Vietnam is set to implement significant reforms in its social insurance and healthcare systems, aiming to broaden access to pensions and free health coverage for many citizens. These changes stem from the newly enacted Social Insurance Law 2024 and accompanying policies, designed to create a more inclusive and equitable social safety net for workers, the elderly, and vulnerable groups.
One of the most notable shifts under the Social Insurance Law 2024 is the reduction of the minimum required social insurance contribution period to qualify for a monthly pension. Previously, workers needed to contribute for at least 20 years to be eligible for a pension. However, this threshold will be lowered to 15 years, effective from July 1, 2025. This adjustment is particularly significant for individuals who began contributing late or have had intermittent contribution periods, giving them a better chance to receive a steady monthly pension rather than a one-time social insurance payout.
Eligibility for a pension now requires workers to have reached the statutory retirement age and to have contributed social insurance for at least 15 years. According to Vietnam's Labor Code 2019, retirement ages are gradually increasing: male workers will reach 62 years by 2028, and female workers will reach 60 years by 2035. In 2025 specifically, the retirement age for men is set at 61 years and 3 months, while for women it is 56 years and 8 months. The retirement age increases annually by three months for men and four months for women, reflecting a phased approach to extending working life.
Regarding pension calculations, female workers who have contributed for 15 years will receive a monthly pension equating to 45% of their average salary base used for social insurance calculations. For each additional year of contribution beyond 15 years, their pension rate increases by 2%, capping at 75%. Male workers who contribute for 20 years receive a base pension of 45%, with the same 2% yearly increase for additional years up to the 75% maximum. Men who contribute between 15 and under 20 years receive a slightly lower starting rate of 40%, with a 1% increase per additional year.
These pension benefits come with the added advantage of free health insurance cards, ensuring retirees have access to healthcare without additional financial burdens throughout their retirement. This provision applies not only to those starting contributions after the law takes effect but also to individuals who had been participating in social insurance beforehand.
Another critical reform involves the calculation of the average salary used to determine pension benefits. This calculation depends on when the individual began contributing to social insurance. For example, those who started before January 1, 1995, have their average salary calculated based on the last five years of contributions before retirement. Those who began between 1995 and 2000 use the last six years, from 2001 to 2006 the last eight years, and so forth, with the period extending up to the entire contribution duration for those starting from 2025 onward. This sliding scale ensures the pension calculation reflects the most relevant earnings period for each retiree.
In addition to pension reforms, Vietnam is expanding its health insurance coverage under the State's budget. From July 1, 2025, four new groups will receive full state-funded health insurance, a move that underscores the government's commitment to a more comprehensive and fair social security system.
These groups include permanent militia members, individuals aged 75 and older who receive monthly survivor benefits, and those aged 70 to under 75 from near-poor households also receiving survivor benefits. Additionally, individuals receiving monthly social retirement benefits and workers who do not qualify for pensions or social retirement benefits but are receiving monthly allowances will be covered.
This expansion is particularly humanitarian. Previously, free health insurance was only granted to those aged 80 and above. Lowering the eligibility age to 75 (and 70 for near-poor households) helps protect elderly individuals who face high health risks and financial insecurity. For instance, the group of elderly survivors includes those who have lost family members and are often burdened by limited income, making medical expenses a significant challenge.
The social retirement benefit system provides monthly allowances for elderly citizens without pensions or social insurance benefits. Eligibility requires being 75 years or older, not receiving other pension benefits (with some exceptions), and submitting an application. Vietnamese citizens aged 70 to under 75 from poor or near-poor households who meet similar conditions are also eligible. By coupling these allowances with free health insurance cards, the government ensures that these vulnerable groups can use their benefits for daily living expenses rather than medical costs.
For workers who have contributed less than 15 years and are too old to continue working but not yet eligible for social retirement benefits (usually under 75), this new policy fills a critical gap in social protection. It acknowledges the plight of those caught between pension eligibility and social retirement, offering them health coverage during a precarious period.
Permanent militia members, often unsung contributors to community safety and emergency response, will also benefit from full health insurance coverage. This support recognizes their sacrifices and enables them to focus on training, disaster prevention, and disease control without worrying about healthcare costs.
Vietnam Social Security emphasizes that these expansions reflect a deeply humane approach, aiming to protect the health and welfare of the poorest, most vulnerable, and elderly citizens. By broadening eligibility for free health insurance and lowering pension contribution requirements, the government is taking concrete steps toward a more inclusive social safety net.
These reforms, effective from mid-2025, mark a pivotal moment in Vietnam's social policy, balancing fiscal sustainability with social equity. They promise to improve the quality of life for millions, ensuring that aging populations and vulnerable groups receive the support they need to live with dignity and security.
