Voluntary Social Insurance: Breakthrough Benefits From July 1st With Maternity And 15-Year Retirement

The 2024 Social Insurance Law (BHXH), effective July 1st, introduces significant updates and attractive additional benefits, making the voluntary social insurance policy more appealing than ever. Compared to the previous two schemes, retirement and death benefits, participants will now enjoy many more substantial advantages.

Let’s explore the detailed benefits that voluntary social insurance participants will receive under the new regulations.

More Flexible And Attractive Retirement Benefits

One of the biggest and most anticipated changes in the 2024 Social Insurance Law is the reduction in the minimum social insurance contribution period required to receive a pension.

• Reduced minimum contribution period: Instead of having to contribute for 20 years as before, voluntary social insurance participants now only need to contribute for 15 years to be eligible for a pension.
• Pension calculation method: The pension amount for voluntary social insurance is calculated similarly to compulsory social insurance. Specifically:
  • Female workers: After contributing for 15 years of social insurance, they will receive a pension rate of 45% of their average monthly income used for social insurance contributions.
  • Male workers: After contributing for 15 years of social insurance, they will receive a pension rate of 40% of their average monthly income used for social insurance contributions.
  • The maximum pension benefit is 75%.
• Accompanying benefits: Pension recipients not only receive a monthly pension (adjusted according to government decisions) but also get a lifelong free health insurance card for healthcare in their old age.

New Regulations On Lump-Sum Social Insurance Payouts

Voluntary social insurance participants can request a lump-sum social insurance payout if they fall into one of the following cases:

• Having reached retirement age but not having contributed for 15 years of social insurance and having no desire to continue contributing. (Note: If they do not opt for a lump-sum social insurance payout, workers can choose to receive a monthly allowance as regulated).
• Leaving the country to settle abroad.
• Suffering from one of the critical illnesses as stipulated by the Ministry of Health.
• Having an 81% or higher reduction in working capacity or being a person with a severe disability.
• Having contributed social insurance before the effective date of the 2024 Social Insurance Law, and after 12 months, not continuing to contribute, yet not having reached 20 years of contributions.

First-Ever Maternity Benefits For Voluntary Social Insurance

This is a groundbreaking and humane new feature of the 2024 Social Insurance Law. For the first time, voluntary social insurance participants will be eligible for maternity benefits.

• Applicable subjects: Both male and female voluntary social insurance participants.
• Eligibility conditions: Having contributed social insurance for at least 6 months within 12 months before childbirth or adoption.
• Benefit amount: According to Article 95 of the 2024 Social Insurance Law, the maternity allowance for each child born is VND 2,000,000.

These positive changes show that the voluntary social insurance policy is increasingly improving, ensuring comprehensive social security, and serving as a solid support for everyone upon retirement or when facing risks in life.