From July 1, 2025, who will have their pension temporarily cut?
From July 1, 2025, when the 2024 Social Insurance Law officially comes into effect, some cases will have their pension benefits temporarily suspended or terminated, and there will be several notable adjustments to the calculation method, benefit levels, and conditions for receiving pensions.
Three individuals had their pension payments temporarily suspended.
According to the Social Insurance Law 2024, individuals receiving monthly pensions or social insurance benefits will have their payments temporarily suspended if they fall into one of the following three cases:
Illegal emigration
Declared missing by the court.
Beneficiary information could not be verified.
Compared to the 2014 Social Insurance Law, the new point lies in the third case. If the beneficiary does not cooperate in verifying information as requested by the social insurance agency, the benefit payment will be temporarily suspended.
In addition, the Law also stipulates three cases in which pension benefits are completely terminated, including:
The beneficiary has died or has been declared dead by the court.
The beneficiary refuses to receive the benefit in writing.
There is a conclusion from the competent authority regarding the misuse of funds.
Who will receive a pension increase starting July 1, 2025?
From the time the law comes into effect, two groups of people will have their pensions increased:
People with low pensions
People who retired before 1995
The goal is to narrow the gap in pension benefits between different periods, ensuring fairness for long-term retirees.
New pension calculation method effective July 1, 2025
The new law also redefines the formula for calculating monthly pensions:
Female workers:Receive 45% of the average salary after 15 years of social insurance contributions. An additional 2% is added for each subsequent year, up to a maximum of 75% after 30 years of contributions.
Male workers:Receive 45% benefits for 20 years of social insurance contributions. Each additional year adds 2%, up to a maximum of 75% with 35 years of contributions.
For men who have contributed to social insurance for 15 to under 20 years: The benefit rate starts at 40%, with an additional 1% added for each year.
Therefore, the highest pension level from July 1, 2025, will be 75% of the average salary used as the basis for social insurance contributions.
From July 1, 2025, those who have contributed to social insurance for 15 years will be eligible to receive a pension.
One notable new development is the reduction of the minimum social insurance contribution period from 20 years to 15 years to be eligible for a pension. This regulation is particularly beneficial for workers with interrupted employment or those who joined social insurance late.
Specifically, in 2025, workers who have reached the legally prescribed retirement age (61 years and 3 months for men, 56 years and 8 months for women) and have contributed to mandatory social insurance for at least 15 years will be eligible to receive a pension.
