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2024 Social Insurance Law
What Benefit Do Workers Gain ?

1. Social Pension Allowance: Support Even Without Full Contributions

Elderly workers who haven’t met the requirements for receiving a pension (due to insufficient social insurance contributions) can still receive monthly support from the state budget. Specifically:

• From the age of 70, those from poor or near-poor households will receive earlier support

• This is a humanitarian policy, reducing the risk of “poverty in old age”

👉 If you or a loved one are hesitant to participate in Social Insurance, don’t miss out on this policy!



2. Monthly Allowance for Those Ineligible for Retirement Pension

Workers who reach retirement age but have less than 15 years of social insurance contributions will:

• No longer have to choose a “one-time withdrawal” and lose all future benefits

• Be eligible for a monthly allowance equivalent to social assistance payments

• Receive health insurance coverage from the state while receiving the allowance

🔍 Our advice: If you have a few more years of work, consider preserving your social insurance record instead of withdrawing it in one go – long-term benefits are much greater.



3. Expanded Options with Supplementary Pension Insurance

The new law allows both employees and employers to participate in Supplementary Retirement Insurance – a voluntary “retirement savings” scheme managed by the government, which helps:

• Increase income after retirement

• Get tax reductions on the contributions made by the employer

✅ A suitable solution for mid-level staff, managers, and high-income earners looking for a safe retirement plan.



4. Updated Calculation Method: "Reference Level" Replaces "Base Salary"

• The traditional “base salary” will be replaced by a “reference level” – a new concept in the social insurance calculation formula

• The reference level will be more flexible, reflecting actual market conditions, ensuring that benefits do not lag behind inflation



5. Stricter Management of Collection and Payments: Better Protection for Workers

The new law specifically defines:

• The responsibilities of employers and social insurance agencies in collecting and paying contributions

• Clear procedures for handling evasion or delays in payments

📢 If you are an employee whose employer owes social insurance contributions, now is the time to seek legal advice to protect your rights.

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