40-year-old female worker wants to voluntarily pay social insurance to receive pension

Ms. Le Thi Trang (40 years old, Thanh Hoa) is a freelance worker. Although her current life is comfortable, because she is worried about her future when she retires, Ms. Trang wants to participate in voluntary social insurance to receive a pension.

However, what Ms. Trang is concerned about is that if she pays voluntary social insurance from now, how many years must she pay, how long must she pay to receive pension benefits, and what level of payment must she make to ensure benefits when she retires?

Regarding this issue, a representative of Vietnam Social Security said that according to current social insurance laws, voluntary social insurance participants are Vietnamese citizens aged 15 and over and are not subject to compulsory social insurance.

social insurance thach thao 6.jpg — Voluntary social insurance helps self-employed workers receive pensions when they retire. Illustration: Thach Thao

The monthly voluntary social insurance contribution is equal to 22% of the monthly income chosen by the participant, the lowest being equal to the poverty line in rural areas (1.5 million VND), the highest being 20 times the basic salary at the time of contribution (currently calculated according to the reference salary of 2.34 million VND).

Voluntary social insurance participants can flexibly choose payment methods: monthly, every 3 months, every 6 months, every 12 months, one-time payment for many years later but not more than 5 years at a time, one-time payment for the missing years for social insurance participants who have met the age requirements to receive pension according to regulations but the remaining social insurance payment period is not more than 10 years (120 months), then they can pay for 20 years to receive pension.

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. The maximum support period is 10 years.

Regarding pension conditions, Vietnam Social Security said that voluntary social insurance participants are entitled to pensions when they meet the age requirements according to the provisions of the 2019 Labor Code ( in 2021, the retirement age of employees in normal working conditions is 55 years and 4 months for female employees. After that, it will increase by 4 months each year until reaching 60 years old in 2035 ) and have paid social insurance for 20 years or more.

According to the current Law on Social Insurance, the monthly pension of employees who meet the prescribed conditions is calculated at 45% of the average monthly salary for social insurance contributions and corresponds to the number of years of social insurance contributions as follows: Female employees retiring from 2018 onwards are 15 years. After that, for each additional year, an additional 2% is calculated; the maximum level is 75%.

From July 1, 2025, when the Social Insurance Law 2024 takes effect, employees participating in voluntary social insurance only need to pay social insurance for 15 years and when reaching retirement age will receive a monthly pension.

Therefore, if Ms. Trang participates in voluntary social insurance from now, she only needs to pay for 15 years and wait until she reaches retirement age (60 years old) to receive a monthly pension. If Ms. Trang pays for 20 years until she reaches retirement age, the pension rate will be higher.