Individuals aged 75 and over who do not receive a pension are entitled to a retirement allowance.

On June 29th, the National Assembly passed the amended Social Insurance Law. Compared to the 2014 Social Insurance Law, the amended law includes many changes aimed at achieving major goals. One of the notable provisions is the regulation stipulating that Vietnamese citizens aged 75 and above are entitled to social retirement benefits.

Vietnam Social Security announced that it will supplement social retirement benefits to form a multi-tiered social insurance system, in line with the direction set out in Resolution No. 28 on social insurance policy reform.

According to statistics at the end of 2022, Vietnam has approximately 14.4 million people over the retirement age (55 years and older for women; 60 years and older for men). The total number of people receiving monthly pensions, social insurance benefits, and social retirement allowances is over 5.1 million, accounting for about 35% of the total number of people over the retirement age.

One of the reform contents in Resolution 28 identified the establishment of a multi-tiered social insurance system, including: social retirement benefits; basic social insurance, including compulsory and voluntary social insurance; supplementary retirement insurance; and, at the same time, set a specific target that by 2030, approximately 60% of people after retirement age will receive monthly pensions, social insurance benefits, and social retirement benefits.

The new Social Insurance Law, recently passed by the National Assembly, has institutionalized the aforementioned reforms and also demonstrates the linkage and flexibility between different levels, as well as the support between social insurance policies, in order to achieve the goal of expanding coverage as stipulated in Resolution No. 28. Accordingly, the amended Social Insurance Law has added provisions regarding social retirement benefits.

Accordingly, Vietnamese citizens aged 75 and above who do not receive a monthly pension or social insurance benefit (except in cases otherwise stipulated by the Government) or Vietnamese citizens aged 70 to under 75 who belong to poor or near-poor households and meet the prescribed conditions are entitled to a social retirement allowance guaranteed by the State budget.

The monthly social retirement allowance is determined by the Government in accordance with the socio-economic development conditions and the capacity of the State budget in each period. Every three years, the Government reviews and considers adjusting the social retirement allowance.

Depending on socio-economic conditions, budget balancing capacity, and mobilization of social resources, the Provincial People's Committee submits to the Provincial People's Council for decision on providing additional support to recipients of social retirement benefits.

Individuals receiving monthly social pension benefits have their health insurance premiums paid by the State budget in accordance with the law on health insurance; upon death, the organization or individual responsible for the funeral will receive funeral expense support in accordance with the law on the elderly.

The amended Social Insurance Law also adds provisions for workers who do not meet the eligibility requirements for a pension and have not yet reached the age to receive social retirement benefits.

Vietnamese citizens who have reached retirement age and have contributed to social insurance but do not meet the conditions for receiving a pension (less than 15 years of contributions) and do not meet the conditions for receiving social retirement benefits, if they do not receive a lump-sum social insurance payment or do not retain their contributions and make a request, are entitled to receive a monthly allowance from their own contributions.

The duration and amount of monthly benefits are determined based on the employee's social insurance contribution period and contribution basis. During the period of receiving monthly benefits, the State budget will pay for health insurance.