Tax Newsletter | June 2026
Vietnam Tax Newsletter – June 2026
JPA Vietnam highlights key provisions under the 2024 Law on Social Insurance No. 41/2024/QH15, covering social pensions, expanded compulsory coverage, voluntary insurance benefits, pension eligibility and contribution management.
Contents
01. Social pension in a multi-tiered insurance system
02. Benefits for employees not yet eligible for pensions
03. Expanded mandatory social insurance coverage
04. Sickness and maternity benefits for part-time officials
05. Maternity benefits in voluntary social insurance
06. Pension eligibility reduced from 20 to 15 years
07. Encouraging contribution reservation
08. Supplementary pension insurance
09. Rights for Vietnamese workers abroad and foreign workers in Vietnam
10. Social Insurance Fund investment efficiency
11. Replacing base salary with reference level
12. Collection and contribution management
13. Better worker protection benefits
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01.Supplement social retirement benefits to form a multi-tiered social insurance system
The 2024 Law on Social Insurance introduces social pension benefits as a state-budget-backed social insurance regime, developed from existing monthly social assistance for elderly persons without pensions or monthly social insurance benefits.
Lower eligibility age
The age to receive social pension benefits is reduced to 75 years old, compared with the current 80-year threshold. Persons aged 70 to under 75 in poor or near-poor households may also be covered.
Additional protection
While receiving the allowance, health insurance premiums are paid by the state budget. Upon death, funeral expense support is provided in accordance with the law on the elderly.
02.Benefits for employees ineligible for pensions and under the age for social retirement benefits
The new law creates a connection between social retirement benefits and basic social insurance for persons who reach retirement age but have paid social insurance for less than 15 years and do not wish to receive a lump-sum social insurance payout.
| Item | Law on Social Insurance 2014 | Law on Social Insurance 2024 |
|---|---|---|
| Target audience | No monthly benefit regime for this group. | Persons at retirement age with less than 15 years of contributions who do not choose a lump-sum payout. |
| Health insurance | Not eligible for free health insurance during this period. | Health insurance premiums are covered by the state budget throughout the benefit period. |
| Funding source | Employees manage on their own or receive a lump-sum payout. | Paid from the social insurance fund based on the employee’s own contributions. |
| Survivors’ benefits | No burial allowance regime for this group. | Relatives may receive a lump-sum allowance and burial allowance if eligible. |
03.Expanding the scope of mandatory social insurance coverage
The 2024 Law on Social Insurance expands compulsory social insurance to several labor groups that were previously outside mandatory coverage.
| Target group | 2014 Law | 2024 Law |
|---|---|---|
| Fixed-term employment contracts | Applicable to contracts of 3 months or longer. | Expanded to contracts of 1 month or longer. |
| Business household owners | Not compulsory. | Mandatory for registered business households. |
| Unpaid enterprise/cooperative managers | Not compulsory. | Mandatory. |
| Part-time officials | Restricted to commune level. | Extended to village and neighborhood levels. |
| Permanent militia | Not compulsory. | Mandatory. |
| Part-time employees | No specific regulations. | Mandatory if income meets or exceeds the minimum contribution base. |
04.Adding sickness and maternity benefits for part-time commune-level officials
Key update: Part-time commune-level officials, who were previously only entitled to retirement and survivors’ benefits, are now eligible for sickness and maternity benefits under the 2024 Law on Social Insurance.
05.Adding maternity benefits to voluntary social insurance
Applicable subjects
Female employees participating in voluntary social insurance who give birth, and male participants whose wives give birth.
Conditions
Employees must contribute to social insurance for at least 6 months within the 12-month period before childbirth.
Allowance
A maternity allowance of VND 2 million per child, funded by the state budget and adjustable over time.
06.Reducing the minimum contribution period for pension eligibility from 20 years to 15 years
The law increases opportunities for social insurance participants to receive pensions by reducing the minimum contribution period. Employees with longer contribution periods will still receive higher pension benefits, as pension accrual rates remain under current rules.
- Retirement age conditions are aligned with the 2019 Labor Code.
- For men contributing from 15 to under 20 years, 15 years equals a 40% rate, plus 1% for each additional year, reaching 45% at 20 years.
- Under relevant international treaty mechanisms, each contribution year in Vietnam below the 15-year threshold may be calculated at 2.25%.
07.Enhanced benefits to encourage workers to reserve social insurance years instead of taking a lump-sum payout
The 2024 Law on Social Insurance encourages employees to reserve contribution periods for future pension entitlement rather than receiving a lump-sum withdrawal.
Higher long-term benefits
Employees who continue participating may qualify for pensions under easier conditions and receive benefits with higher payout levels.
Health insurance protection
During pension receipt, health insurance is paid by the Social Insurance Fund. During monthly allowance receipt before social pension age, health insurance is paid by the State budget.
08.Addition of provisions on supplementary pension insurance
Supplementary pension insurance is introduced as a voluntary, market-based scheme that complements the mandatory retirement system. It operates through a fund-creation mechanism based on contributions from employers, or jointly from employers and employees.
A new chapter regulates participants, operating principles, the Supplementary Pension Insurance Fund and state policies, creating more options for employers and employees to contribute and receive higher pension levels.
09.Ensuring social insurance rights for Vietnamese workers abroad and foreign employees in Vietnam
The 2024 Law provides better protection for both Vietnamese employees working abroad and foreign employees working in Vietnam. Where an international treaty to which Vietnam is a member allows it, contribution periods in Vietnam and abroad may be combined when assessing eligibility for benefits.
10.Enhancing the investment efficiency of the Social Insurance Fund
Investment portfolio
Expands investment portfolio and methods, including Government bonds in international markets and professional investment mandates.
Financial management
Adds stricter fund investment management rules and greater transparency in appraisal and approval of social insurance operational expenditure settlements.
Management responsibility
Consolidates the Social Insurance Management Council and clarifies functions of state management agencies regarding fund finances.
11.Replacing “base salary” with “reference level”
Replacing the statutory base salary with a reference level is a key technical change designed to increase the independence and flexibility of social insurance policies.
2014 approach
Using the statutory base salary to calculate contributions and benefits tied social insurance policies closely to public-sector wage policies.
2024 approach
The reference level is used to calculate contribution and benefit levels for certain regimes. It will be adjusted based on CPI growth, economic growth, the state budget and the Social Insurance Fund’s capacity.
12.Clearly regulating management of social insurance collection and contributions
The 2024 Law dedicates an entire chapter to social insurance collection and contribution management, strengthening legal compliance and protecting employees’ legitimate rights and interests.
Late payment of SHUI
Failure to pay or underpay contributions compared with registered records, or delaying labor registration for less than 60 days, is treated as late payment rather than evasion.
Social insurance evasion
Failure to register, under-registering participants for more than 60 days, or declaring a lower contribution salary than required may be treated as evasion.
| Case | Details under the 2024 Social Insurance Law | Benefits / Actions |
|---|---|---|
| First month of sick leave | Sick leave for 14 days or more in the first employment month or first month after returning to work. | Social insurance contributions must still be paid for that month to maintain continuous participation. |
| Missing SI contributions ≤ 6 months | Missing up to 6 months to qualify for a pension or monthly survivor benefits. | Allowed to make a one-time payment for the missing contributions. |
| Missing SI contributions > 6 months | Mandatory participation has ended, but more than 6 months are still missing to qualify for a pension. | Allowed to continue voluntary social insurance contributions to reach the minimum 15-year contribution period. |
| Social insurance evasion | Intentional non-payment, serious underpayment for over 60 days, or declaration of a lower salary than the actual salary. | Subject to a 0.03% daily penalty on the unpaid amount and may face administrative or criminal penalties. |
13.Enhancing social insurance benefits for better worker protection
Sickness and maternity benefits
Sick leave for part of a day is counted more flexibly; health insurance for employees taking sickness leave for 14 working days or more per month is covered by the Social Insurance Fund. Special maternity benefits include paid leave for infertility treatment and full maternity leave for both spouses in certain miscarriage or stillbirth cases.
Pension and survivorship benefits
Pension age and monthly survivor benefits follow the 2019 Labor Code. Employees who continue working after retirement age may receive a higher lump-sum allowance for each extra contribution year.
Expanded choice: Eligible family members may choose between monthly survivorship benefits and a lump-sum payment, reflecting greater respect for individual and family preferences.
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