From July 1, 2025, who will have their pension temporarily 'cut'?
From July 1, 2025, when the Social Insurance Law 2024 officially takes effect, some cases will have their pension benefits suspended or terminated, and there will be many notable adjustments in the calculation method, benefit levels and conditions for receiving pensions.
3 cases of pension suspension
According to the provisions of the Law on Social Insurance 2024, people receiving monthly pensions or social insurance (SI) benefits will have their payments suspended if they fall into one of the following three cases:
Illegal exit
Declared missing by the Court
Unable to verify beneficiary information
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 payment regime will be temporarily suspended.
In addition, the Law also stipulates 3 cases of complete termination of pension benefits, including:
The beneficiary is dead or has been declared dead by the Court.
Beneficiary refuses to receive benefits in writing
There is a conclusion from a competent authority about the illegal enjoyment of benefits.
Who will get a pension increase from 1/7/2025?
From the time the law comes into effect, two groups of subjects will have their pensions increased:
People with low pensions
People who retired before 1995
The goal is to narrow the pension gap between periods, ensuring fairness for long-term retirees.
New pension calculation method from July 1, 2025
The new law also re-regulates the formula for calculating monthly pensions:
Female workers:Enjoy 45% of average salary with 15 years of social insurance contribution. Each subsequent year is added 2%, maximum 75% with 30 years of contribution.
Male workers:Enjoy 45% with 20 years of social insurance contributions. Each additional year also adds 2%, maximum 75% with 35 years of contributions.
Men paying social insurance from 15 to under 20 years: The benefit level starts from 40%, each year adds 1%.
Thus, the highest pension level from July 1, 2025 is 75% of the average salary used as the basis for social insurance contributions.
From July 1, 2025, those who have paid social insurance for 15 years can receive pension
A very notable new point is the reduction of the minimum period of social insurance contribution from 20 years to 15 years to receive pension. This regulation is especially beneficial for workers who have had interrupted working time or participated in social insurance late.
Specifically, in 2025, employees who reach retirement age according to regulations (male: 61 years and 3 months, female: 56 years and 8 months) and have at least 15 years of compulsory social insurance contributions will receive pensions.
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