It's not too late to join social insurance at 45 years old

Ms. Le Thi Ha (43 years old, from Binh Duong) used to work as a worker at a food factory in Tan Binh District, Ho Chi Minh City for 10 years. In 2008, when her family moved to Binh Duong, Ms. Ha withdrew her social insurance payment in one go.

After quitting her company job and working freelance, seeing that her family's economic conditions were more stable, Ms. Ha wanted to voluntarily pay social insurance so that she could have a pension when she retired.

However, what Ms. Ha is concerned about is her old age, she does not know how many years of social insurance she has to pay to be eligible for retirement benefits.

“After researching, I learned that I can participate in voluntary social insurance, but because of my old age, I am afraid that I will not be able to pay in time according to regulations so that I can receive a pension when I reach old age,” Ms. Ha shared.

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Freelance workers over 40 years old who participate in voluntary social insurance will still receive pensions when they reach retirement age. Illustration photo: Chi Hieu

According to Vietnam Social Security, the Social Insurance Law 2024, effective from July 1, 2025, stipulates that all Vietnamese citizens aged 15 and over who are not subject to compulsory social insurance can participate in voluntary social insurance. The monthly voluntary social insurance contribution of participants is equal to 22% of the monthly income chosen by the participant.

When participating in voluntary social insurance, participants are supported by the State with a percentage (%) of the monthly social insurance contribution according to the poverty line in rural areas, specifically: 30% for participants from poor households; 25% for participants from near-poor households; 10% for other subjects.

In case a voluntary social insurance participant has reached the retirement age as prescribed but the remaining social insurance payment period is less than 10 years (120 months), he/she can pay once for the remaining years to reach 20 years to receive pension.

Regarding pension conditions, Vietnam Social Security said that voluntary social insurance participants are entitled to pension when they meet the age requirements according to the provisions of the 2019 Labor Code.

Accordingly, from 2021, the retirement age of female workers will increase by 4 months per year, and that of male workers will increase by 3 months per year until 2035, when the retirement age of women will increase to 60 and that of men will increase to 62.

It is worth mentioning that, according to the current Social Insurance Law, retirees must have at least 20 years of social insurance contributions, but from July 1, 2025, when the Social Insurance Law 2024 takes effect, the condition for those of retirement age is that they only need to have paid 15 years of social insurance contributions to receive a pension.

Thus, like compulsory social insurance, voluntary social insurance participants who pay social insurance at the age of 45 are still eligible to receive pension.

In addition, unlike compulsory social insurance which requires monthly payments, voluntary social insurance participants can choose one of the following methods: monthly payment, 3-month payment, 6-month payment, 12-month payment and one-time payment for many years in the future (but not more than 5 years at a time).

Salary depends on contribution level and contribution period.

Regarding the monthly pension, a representative of the Social Insurance Department (Ministry of Labor, Invalids and Social Affairs) said that based on the contribution level, the monthly pension of female workers is calculated at 45% of the average monthly income for social insurance contributions for 15 years of social insurance contributions. After that, for each additional year, it is calculated at 2% until reaching the maximum level of 75%.

For male workers who are of retirement age and have paid social insurance for 15 years, the pension rate is 40% of the average salary used as the basis for social insurance payment. After that, each additional year of payment is added 1%. From the 20th year onwards, the pension rate is 45%, calculated by adding 2% per year of payment until the maximum benefit is 75%.

Thus, with the same 15 years of social insurance contributions, male workers receive a pension of 40% while female workers receive 45%.

According to labor and salary experts, although male workers have a lower pension rate than female workers when they have paid social insurance for 15 years, reducing the payment period to 5 years (15 years compared to 20 years according to the current Social Insurance Law) will help workers, especially freelancers, have the opportunity to receive monthly pensions. Pension levels are also adjusted according to the consumer price index.

When receiving pension, employees will have their health insurance paid by the Social Insurance Fund, contributing to ensuring a better life in old age.

Thus, the monthly pension will be high or low depending on the monthly income and the social insurance payment period that the participant chooses.