How will pensions change from July 1?

According to the new regulations, from July 1, 2025, there are 2 groups of people eligible for early retirement without having their monthly pension rate deducted.

Pursuant to Article 64 of the Law on Social Insurance 2024 from July 1, 2025, there are 2 groups of subjects eligible for early retirement without having their monthly pension rate deducted.

The Ministry of Labor, War Invalids and Social Affairs (MOLISA) is seeking comments on a draft circular detailing and guiding the implementation of a number of articles of the Law on Social Insurance (SI), including new points on pensions. This circular will take effect from July 1, 2025.

According to the draft circular, the subjects and conditions for receiving pensions for employees are implemented according to the provisions of Articles 64 and 65 of the Law on Social Insurance 2024.

Accordingly, the determination of working time in arduous, toxic, dangerous or especially arduous, toxic, dangerous jobs on the list issued by the Ministry of Labor, War Invalids and Social Affairs. Or working in areas with particularly difficult socio-economic conditions, including working time in areas with regional allowance coefficient of 0.7 or higher before January 1, 2021 or working in underground coal mining as a basis for considering pension eligibility.

For employees who are working in a profession, job or place with a regional allowance coefficient of 0.7 or higher and have to take time off work for treatment and rehabilitation due to a work-related accident or occupational disease (the employer pays full salary and pays compulsory social insurance), this time is counted as time working in a profession, job or place with a regional allowance coefficient of 0.7 or higher.

For employees who are working in a profession, job or place with a regional allowance coefficient of 0.7 or higher, and whose maternity leave period is counted as compulsory social insurance payment period, this period is counted as time working in a profession, job or place with a regional allowance coefficient of 0.7 or higher.

For employees who are doing a job, doing a job or working in a place with a regional allowance coefficient of 0.7 or higher and are sent to work, study or cooperate in labor without doing a job, doing a job or working in a place with a regional allowance coefficient of 0.7 or higher, this time is not counted as time doing a job, doing a job or working in a place with a regional allowance coefficient of 0.7 or higher.

For employees who are working in a profession, job or place with a regional allowance coefficient of 0.7 or higher, and continue to pay one time for the remaining months of up to 6 months to be eligible for pension, this time will not be counted as time working in a profession, job or place with a regional allowance coefficient of 0.7 or higher.

In addition, according to the draft, the Ministry of Labor, Invalids and Social Affairs proposes regulations on employees who meet the retirement age requirements but have a maximum of 6 months of compulsory social insurance payment remaining to be eligible for a pension.

Specifically, employees are allowed to continue paying one time for the remaining months with a monthly payment equal to the total payment of the employee and the employer before the employee quits the job to the retirement and death fund as prescribed in Clause 7, Article 33 of the Law on Social Insurance.

Subjects who meet the retirement age requirements according to Article 64 of the Law on Social Insurance must have a mandatory social insurance payment period of 14 years and 6 months to less than 15 years.

Subjects who meet the retirement age requirements under Article 65 of the Law on Social Insurance must have paid compulsory social insurance for at least 19 years and 6 months to less than 20 years and have a working capacity reduction of 61% or more. The earliest time to continue paying one-time for the remaining months is the month immediately preceding the month eligible for retirement according to regulations.

Pursuant to Clause 3, Article 66 of the Social Insurance Law 2024, the monthly pension level is stipulated as follows:

The monthly pension of eligible subjects specified in Article 65 of this Law is calculated as prescribed in Clause 1 of this Article, then reduced by 2% for each year of retirement before the prescribed age.

In case of early retirement of less than 6 months, the pension percentage will not be reduced. From 6 months to less than 12 months, the pension percentage will be reduced by 1%.

Thus, from July 1, 2025, each year of early retirement will have 2% of pension deducted, less than 6 months of early retirement will not be deducted, from 6 months to less than 12 months, 1% of pension will be deducted.

Pursuant to Article 169 of the 2019 Labor Code, the retirement age of employees in 2025 under normal working conditions is from 61 years and 3 months for men and 56 years and 8 months for women. However, in some special cases, employees who retire before the prescribed retirement age can still receive full pension.

Pursuant to Article 64 of the Social Insurance Law 2024 from July 1, 2025, there are 2 groups of subjects eligible for early retirement without having their monthly pension rate deducted according to regulations, including:

- Regular police, army and militia groups.

- Employees who are eligible for early retirement according to regulations will not have their pension deducted./.

Source