Vietnam is set to implement a series of significant reforms in its labor and social insurance policies starting in 2026, reshaping how unemployment benefits, voluntary social insurance contributions, employment service enterprises, and pensions function. These changes come as part of the Labor Law 2025, the Social Insurance Law 2024, and related decrees, aiming to modernize and streamline social welfare and labor market operations amid evolving economic and social conditions.
One of the most notable changes involves unemployment benefits. According to Article 38 of the Labor Law 2025, effective January 1, 2026, workers seeking unemployment aid must meet stricter conditions. Eligibility now requires that the individual has terminated their labor contract legally—not due to illegal unilateral termination or retirement eligibility—and has contributed to unemployment insurance for at least 12 months within the 24 months prior to contract termination. For those on fixed-term contracts lasting from one month to less than 12 months, a longer contribution period applies: at least 12 months within the previous 36 months.
Applicants must submit their claims within three months of contract termination. After submission, within 10 working days, the applicant must not have secured new employment, be engaged in compulsory social insurance, military or public security service, long-term study exceeding 12 months, or be subject to forced education, detention, imprisonment, permanent emigration, or death. This comprehensive approach ensures that benefits are directed to those genuinely unemployed and actively seeking work.
To facilitate access to these benefits, the Ministry of Interior has launched a pilot program starting July 21, 2025, allowing six unemployment insurance procedures to be processed online via the National Public Service Portal. These include monthly job search notifications for force majeure cases and processes for suspending, continuing, terminating, or transferring unemployment benefits. This digital shift aims to ease the administrative burden on workers, especially those less familiar with electronic transactions, complementing traditional direct submission methods.
In parallel, voluntary social insurance contributions have also undergone reform. Vietnam Social Security clarified that under the prior Social Insurance Law 2014 and Government Decree No. 134/2015/ND-CP, participants could choose from various payment frequencies—monthly, quarterly, semi-annually, annually, or lump-sum payments for up to five years or to cover missing years to reach pension eligibility.
However, as of July 2025, the Social Insurance Law 2024 introduces nuanced changes. Article 36(2) now allows voluntary contributors to pay monthly, quarterly, semi-annually, annually, or make a one-time payment either for multiple future years at a reduced rate or to cover missing contributions to qualify for retirement benefits, albeit at a higher amount. Notably, individuals born in 1958 who have reached retirement age and have contributed at least 15 years to social insurance are eligible to receive pensions under the new law. This flexibility aims to accommodate diverse financial capacities and encourage broader participation in voluntary social insurance, crucial for enhancing social security coverage.
The Labor Law 2025 also redefines the framework for employment service enterprises. Article 28 specifies that such businesses must be established under corporate law and licensed by a competent state agency—a shift from the previous designation of provincial employment management authorities. To obtain and maintain a license, enterprises must have adequate physical facilities, qualified personnel, and maintain a deposit throughout their operation. Furthermore, when establishing branches, these businesses must notify the provincial employment agency before commencing activities.
These updated requirements contrast with the 2013 Labor Law, which mandated a stable headquarters with a minimum three-year operation period and a specialized organizational structure. The new law emphasizes ongoing compliance and transparency, reflecting the government’s intent to professionalize and regulate employment services more rigorously.
On the pension front, Decree 67/2025/ND-CP amends previous regulations on retirement benefits for cadres, civil servants, public employees, workers, and armed forces personnel, especially concerning early retirement due to organizational restructuring. Under this decree, individuals retiring early under specified conditions will not face reductions in their pension rates, even if retiring two to ten years before the standard retirement age.
Three groups qualify for this exemption: those within two to under five years of retirement age who meet pension eligibility, those over five to under ten years from retirement age eligible for pensions, and those within two to under five years from retirement age who have worked at least 15 years in extremely difficult or hazardous occupations. Additionally, cadres, civil servants, and others retiring early due to administrative reorganization are also exempt from pension reductions.
Regarding pension calculations, the current Social Insurance Law stipulates that male workers receive a base pension rate of 45% for 20 years of contributions, and female workers receive the same rate for 15 years. Each additional year of contribution adds 2%, up to a maximum of 75%. To reach this maximum, men must contribute for 35 years, women for 30 years. The decree maintains these calculation principles while providing protections for those retiring early under the new restructuring rules.
The social insurance agency commits to processing pension applications within 20 days of receiving complete documentation, basing pension commencement on the retirement decision date. This ensures timely financial support for retirees, reflecting the government’s commitment to social welfare.
These reforms collectively aim to modernize Vietnam’s labor and social insurance systems, balancing flexibility with accountability. By tightening eligibility for unemployment benefits, expanding voluntary social insurance options, professionalizing employment service enterprises, and protecting pension rights amid workforce restructuring, Vietnam is preparing its social safety net for the challenges of a dynamic labor market and demographic shifts.
As these policies roll out starting in 2026, workers, employers, and service providers will need to adapt to new procedures and requirements. The government’s emphasis on digital services, clearer licensing standards, and equitable pension protections reflects a broader strategy to enhance social security and labor market efficiency in an increasingly complex economic environment.
