According to Article 141 of the 2024 Social Insurance Law, “If the base salary level is not abolished, the reference level stipulated in this Law shall be the base salary level. At the time the base salary level is abolished, the reference level shall not be lower than that base salary level.”
As such, the minimum pension level is no longer determined by the base salary level as before. Instead, the monthly minimum pension will be applied to those who have participated in compulsory social insurance for 20 years or more and whose actual pension level (determined by social insurance contribution history and contribution level) is lower than the reference level stipulated by the government.
The reference level is a monetary amount determined by the government that is not lower than the base salary level at that time. Currently, the base salary is set at 2,340,000 VND/month. Therefore, the minimum pension level is guaranteed not to fall below this amount until there are new regulations from the government regarding the reference level.
For those who have contributed to social insurance for less than 20 years, the minimum pension level is not considered, and the benefit amount will be calculated based on the contribution ratio according to the actual contribution period up to 15 years of social insurance contribution.
Thus, from July 1, 2025, the minimum pension level will no longer be a fixed amount but will depend on the reference level stipulated by the government, especially since this level is not lower than the current base salary level.
The minimum pension level is applied according to the provisions of the 2024 Social Insurance Law. Illustrative image: TL
How will the new minimum pension regulations affect employees?
The new minimum pension regulations in the 2024 Social Insurance Law will have positive impacts on employees. These include:
– Improved living standards for retirees:
Minimum pension level not lower than the base salary level: This ensures that retirees receive a minimum pension equivalent to the basic standard of living, guaranteeing a minimum level of support for those who have retired.
– Incentivizing social insurance participation:
Encouraging employees to participate in social insurance: With the assurance of a minimum pension level, employees are more likely to contribute to social insurance, contributing to a sustainable social welfare fund.
– Protecting the interests of employees with shorter contribution periods:
Reduction in the minimum social insurance contribution period to 15 years: The new minimum pension level will especially benefit those with shorter contribution periods, ensuring they still have sufficient benefits to sustain themselves after retirement.
– Promoting social equity:
Supporting retirees with low pensions: Those who previously received low pensions will now receive more support, reducing the gap between different groups of workers and contributing to a more equitable social welfare policy.
– Positive psychological impact:
Adjusting the minimum pension level reassures employees about their benefits within the social insurance system. This builds trust in the state’s protection of employees during their golden years.
The new minimum pension regulations will improve the living standards and protect the interests of employees, especially those with shorter social insurance participation periods. This benefits not only pensioners but also contributes to the sustainable development of the social welfare fund.
The Ultimate Guide to Social Insurance Claims: Unlocking Your Benefits
Most Social Security beneficiaries opt for a lump-sum payment, especially those in urgent need of funds. This prompts the question: why is this the case, and how can one obtain this sum of money? Let’s delve into this intriguing topic and unravel the answers together.
The Latest Maternity Benefit Procedures for 2022
Pregnancy and childbirth are life-changing events, and understanding your rights and benefits is essential. The maternity insurance regime is part of the compulsory social insurance framework, offering vital support to new and expecting mothers. Stay informed and ensure you know the latest procedures to access these benefits in 2022.
