Vietnam’s social insurance law: New law to come into effect on 1 July 2025

Vietnam’s 15th National Assembly recently passed Law No. 41/2024/QH15 on social insurance. The new law introduces amendments that address current inadequacies between legislation and real-life practice, while improving the rights and benefits for social insurance participants. It will come into effect on1 July 2025. The Ecovis experts know the changes.

The implementation of the new law repeals Law No. 58/2014/QH13 on social insurance and Resolution No. 93/2015/Qh13 concerning the one-time social insurance policy for employees.

The new 2024 social insurance law regulates the rights and obligations of the relevant authorities, organisations and individuals in terms of:

• The implementation of social insurance
• Social pension benefits
• Registration and management of social insurance collection and payment
• Regimes and policies for both compulsory and voluntary social insurance
• The social insurance fund
• Supplementary pension insurance
• Complaints, censures and the handling of social insurance violations
• State management of social insurance

We support companies in implementing the new social insurance law.

Nghia Tran, Partner, ECOVIS AFA Vietnam, Da Nang City, Vietnam

The key points of the social insurance law

With 141 articles arranged in 11 chapters, the new law contains several remarkable new points, which are summarised below:

1. The law provides a state-funded social pension scheme, which is developed from the current regulations on monthly social allowances for the elderly.
2. The law is designed to develop a multi-tier social insurance system. Accordingly, social insurance participants will be entitled to monthly allowances before reaching the age of social pension eligibility. During that period, they will also be eligible for state-covered health insurance benefits.
3. The scope of compulsory social insurance participants is expanded.
4. The law is more beneficial to social insurance participants, e.g., it reduces the minimum years of insurance premium payment required for monthly pension entitlement, and grants maternity allowances to voluntary social participants.
5. The law devotes a separate chapter to providing the management of social insurance premium collection and payment, clarifying the definition of, and measures for handling, late payment and evasion of social insurance premiums.
6. The law specifies a reference level, i.e., a financial amount prescribed by the government for the calculation of social insurance premiums and benefits, to replace the basic salary level, which was abolished as of 1 July.
7. The law contains more specific provisions on the investment and management of the social insurance fund as well as the approval, appraisal and account finalisation of expenses for social insurance activities.
8. Social insurance administrative procedures are simplified, enabling electronic transactions in the social insurance sector and assessment of public satisfaction with the implementation of social insurance policies and regimes.
9. The law is contains additional regulations on international cooperation and further clarifies the state management responsibilities of the Ministry of Labour, Invalids and Social Affairs and the Ministry of Finance for social insurance-related issues.

For further information please contact:

Nghia Tran, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: Nghia.Tran@ecovis.com.vn