Vietnamese workers who go abroad for employment will soon be eligible for pension benefits under the new Luật Bảo hiểm xã hội 2024, which takes effect on July 1, 2025. This significant change is poised to impact many workers who have previously been excluded from such benefits.
According to Article 2 of the new law, workers employed abroad under contract are subject to mandatory social insurance unless otherwise specified by international treaties. This means that those who work overseas will be recognized as laborers under labor contracts and will qualify for pensions, provided they meet certain criteria.
Article 5 of the Luật Người lao động Việt Nam đi làm việc ở nước ngoài theo hợp đồng 2020 outlines various forms of overseas labor contracts. These include contracts with Vietnamese enterprises that send workers abroad, contracts with foreign employers, and agreements for training or skill enhancement abroad. This wide-ranging definition ensures that many workers can access pension benefits.
Eligibility for pensions is further detailed in Article 64 of the Luật Bảo hiểm xã hội 2024. Workers who have contributed to social insurance for at least 15 years and meet specific age requirements will be entitled to pensions. The retirement age is determined by the Bộ luật Lao động, which sets different ages for men and women.
For those engaged in heavy or hazardous occupations, there are provisions for earlier retirement. Workers can retire up to ten years earlier if they have worked in coal mining or contracted HIV/AIDS due to occupational accidents. This flexibility aims to protect workers in physically demanding jobs.
In addition to the pension eligibility for overseas workers, the new law introduces a notable provision regarding monthly allowances for citizens who reach retirement age but do not qualify for pensions. Article 23 stipulates that Vietnamese citizens who do not meet pension requirements will receive monthly allowances from their contributions if they do not opt for a lump-sum payment or retain their contributions.
The duration and level of these monthly allowances will be determined based on the contribution period and the basis of social insurance contributions. The minimum monthly allowance will be equivalent to the monthly social pension benefit, ensuring that those who are not eligible for pensions still receive some financial support.
Moreover, if the total contributions exceed the monthly social pension benefit, workers will receive a higher allowance. Conversely, if their contributions are insufficient to provide monthly allowances until they reach the age for social pension benefits, they can make a one-time payment to cover the shortfall.
The new law also details the timing of pension benefits for voluntary social insurance participants, as outlined in a recent Thông tư issued by the Ministry of Internal Affairs. This Thông tư clarifies that the timing of pension benefits for those with at least 15 years of contributions will begin on the first day of the month following the month they reach retirement age.
For example, Mr. A, born on April 5, 1964, who has contributed to voluntary social insurance for 19 years, will start receiving his pension on August 1, 2025, as he meets the retirement age of 61 years and 3 months.
Furthermore, if participants continue contributing after meeting pension eligibility, their benefits will commence on the first day of the month following their last contribution. This allows for flexibility in financial planning for those who wish to continue working.
In cases where participants need to pay a lump sum for missing years of contributions, their pension benefits will start on the first day of the month following full payment. This provision is particularly important for those who may have gaps in their contribution history.
The Thông tư is set to take effect from an unspecified date in 2025 but will apply from July 1, 2025. This timeline aligns with the overall implementation of the Luật Bảo hiểm xã hội 2024.
In summary, the Luật Bảo hiểm xã hội 2024 brings crucial changes for Vietnamese workers, especially those employed abroad. By extending pension eligibility and introducing monthly allowances for those who do not qualify for pensions, the law aims to provide better social security and financial stability for workers. As these new regulations come into effect, it is expected that they will significantly improve the livelihoods of many Vietnamese citizens both at home and abroad.
