Starting from July 1, 2025, the 2024 Social Insurance Law will officially take effect, marking a significant reform in Vietnam’s social security system. With several strategic changes, the new law not only expands social insurance coverage but also better protects employees’ rights while requiring businesses to fulfill their obligations strictly.

In this article, NIC Global provides a clear, detailed, and easy-to-understand summary of the most notable updates in the 2024 SI Law. The article targets employees and employers – the two groups most directly impacted by the new regulations.

I. EXPANDED MANDATORY SOCIAL INSURANCE COVERAGE

1. All employment contracts of 1 month or more must participate in SI
   Under the 2024 SI Law, any labor contract lasting at least 1 month, regardless of its name or type, that includes paid wages and is under the management and direction of one party will require the employee to participate in compulsory social insurance.
2. Additional groups included

• Part-time workers earning no less than the minimum wage are used for SI contributions
  
• Household business owners with registered businesses
  
• Managers, board members, directors, and controllers of cooperatives (with or without salary)
  
• Spouses of diplomatic officials on assignment abroad who are not paid from the state budget
  

3. Foreign employees
   Foreigners working in Vietnam under labor contracts of at least 12 months must participate in SI, unless they:

• Are on an intra-corporate transfer
  
• Have reached retirement age when signing the contract
  
• Are covered under other international agreements
  

II. “REFERENCE LEVEL” REPLACES “BASE SALARY”

The law replaces “base salary” with a “reference level” used to calculate contributions and benefits.

• Defined and adjusted by the Government
  
• Based on: Consumer Price Index (CPI), economic growth, state budget capacity, and SI Fund sustainability
  
• Temporarily, the reference level equals the current base salary until further notice
  

III. RETIREMENT BENEFITS: MORE FLEXIBLE AND INCLUSIVE

1. Reduced minimum contribution period for pensions: from 20 years to 15 years
   This change allows more people, especially older or intermittently insured workers, to qualify for lifelong pensions.
2. Social pension benefits
   Citizens aged 75+, or 70+ if poor/near-poor and not receiving pensions, will be eligible for monthly social pensions.
   They also receive free health insurance and funeral assistance.
3. Monthly benefits for those not qualifying for a pension
   Workers of retirement age who have contributed less than 15 years and choose not to withdraw a one-time SI benefit can request monthly payments from their contributions, at least equal to the social pension.

IV. VOLUNTARY SOCIAL INSURANCE: MORE BENEFITS AND SUPPORT

1. Added benefits for maternity and work accidents

• Maternity support: VND 2 million/child for birth or stillbirth after 22 weeks
  
• Work accident allowance: per regulations in the Labor Safety and Hygiene Law
  
• Special support: Ethnic minority women (or wives of minority men) from poor households receive extra support when giving birth
  

2. Eligible participants

• Vietnamese citizens aged 15 and up not covered by the mandatory SI and are not receiving a pension
  
• Employees on labor contract suspension (if not opted into mandatory SI during the break)
  

V. STRICTER ENFORCEMENT ON DELAYED OR EVASIVE SI PAYMENTS

1. Late SI payments
   A company is considered late if:

• Not paying on time (monthly, quarterly, or semi-annually)
  
• Failing to register eligible employees for SI within 60 days of the obligation
  

Penalties:

• Interest on late payments at 0.03% per day
  
• Administrative fines and ineligibility for awards or recognition
  

2. SI evasion
   Includes:

• Not registering or underreporting employees
  
• Underreporting salaries for the SI contribution
  
• Intentionally not paying despite reminders
  

Penalties:

• Full back payment + 0.03% interest/day
  
• Possible criminal charges
  
• Ineligibility for commendations and awards
  

VI. RIGHTS AND RESPONSIBILITIES OF EMPLOYEES & EMPLOYERS

1. Employees

• Can track monthly SI contributions
  
• Can refuse to receive benefits if they wish
  
• Must provide accurate information
  
• May authorize someone to receive pensions for up to 12 months
  

2. Employers

• Must register employees for mandatory SI properly
  
• Must return the SI paper books to the employees
  
• Must confirm SI contributions when employees leave
  
• Must provide timely information to the SI authorities
  
• Must compensate for damages if they violate employee rights
  

VII. SICKNESS AND MATERNITY BENEFITS: MORE PRACTICAL AND HUMANE

1. Sickness benefits
   Covers more cases like:

• Off-duty accidents
  
• Organ/tissue donation
  
• Caring for children under 7
  

Also:

• Half-day absences qualify for benefits
  
• No 180-day limit like before
  
• Long-term illnesses are still covered, but at reduced benefit rates
  

2. Maternity benefits

• Includes cases of surrogacy, infertility treatments
  
• Adoptive parents of infants under 6 months are eligible for a one-time allowance without taking leave
  
• Both the employer and the employee must contribute to SI during the early return to work
  
• If twins (or more) are stillborn, full allowance still applies per child
  

VIII. ONE-TIME SOCIAL INSURANCE WITHDRAWAL: CLEAR CONDITIONS

Workers joining SI from July 1, 2025, onward can only withdraw one-time Social Insurance if:

• They reach retirement age but haven’t contributed for 15 years
  
• They permanently move abroad
  
• They have a serious illness
  
• Their working capacity is reduced by 81% +
  
• 12 months have passed since stopping SI contributions (both compulsory and voluntary)
  

Encouragement to avoid early withdrawal for:

• Lifelong pensions
  
• Continued health insurance coverage
  
• Monthly support if not eligible for pensions
  

IX. SURVIVOR BENEFITS: MORE FLEXIBLE AND FAIR

1. Funeral and monthly survivor allowances

• Lump-sum death benefit is higher if the insured dies within the first 2 months of pension (up to 48 months of pension)
  
• Funeral and survivor allowances still apply even if a pension is suspended
  

2. Family rights
   Eligible family members may choose a one-time payment instead of monthly benefits if it’s more favorable

X. LOCAL GOVERNMENT’S MANAGEMENT ROLE

For the first time, the law clearly defines responsibilities for local authorities:

• Promote and monitor SI compliance
  
• Include SI coverage targets in local development plans
  
• Handle local violations
  

XI. COMPLAINTS AND WHISTLEBLOWING

Citizens may:

• File complaints with administrative agencies or the SI authority
  
• File lawsuits in court
  
• The provincial People’s Committee Chair will handle violations occurring before 1995
  

CONCLUSION

The 2024 Social Insurance Law marks a significant milestone in modernizing, humanizing, and increasing transparency in Vietnam’s social security policy.
For employees, it’s a key to ensuring financial security in old age.
For businesses, it’s both a responsibility and a foundation to build a sustainable, talent-retaining work environment.

NIC Global recommends:

• Employees should actively monitor and verify their SI contribution history
  
• Employers should review registration processes, update internal policies, and prepare for new obligations
  Let’s get ready together for these major changes from July 1, 2025.

For contact and support:

Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: info@nicvn.com
Hotline: 0981.23.43.76
Address:

• Hanoi Office: No. 3A Thi Sach, Pham Dinh Ho Ward, Hai Ba Trung District, Hanoi, Vietnam
• Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, District 1, Ho Chi Minh City, Vietnam

See more:
Payroll service
Staffing service
EOR service