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From July 1, 2025, voluntary social insurance (VSI) participants who meet the required age and contribution period can start receiving pensions. Specifically, those who contributed to VSI before January 1, 2021, and have completed 20 years of contributions will be eligible to retire immediately upon reaching 60 years old (for men) and 55 years old (for women).
The Ministry of Home Affairs is drafting a circular guiding the timing, calculation basis, and conditions for VSI participants with at least 15 years of contributions. Accordingly, individuals meeting the required contribution period will receive pensions starting from the month immediately following their retirement age.
As of January 2025, the number of VSI participants reached 2.3 million, accounting for 4.9% of the working-age labor force. Notable changes include:
1. Reduction of the Minimum Contribution Period for Pension Eligibility
Under the new regulations, VSI participants will be eligible for pensions upon reaching retirement age with at least 15 years of contributions, instead of 20 years as previously required.
2. Flexible Contribution Methods
VSI participants can choose from the following contribution methods:
- Monthly contributions.
- Quarterly contributions (every 3 months).
- Biannual contributions (every 6 months).
- Annual contributions (every 12 months).
- Lump-sum contributions for multiple future years at a lower rate than monthly contributions.
- Lump-sum contributions for missing periods to qualify for pension, with a higher payment than the standard monthly rate.
3. Monthly Pension Calculation
The pension amount is calculated based on the contribution period and gender:
- Female workers: Receive 45% of the average monthly income used as the contribution base for 15 years of VSI. Each additional year adds 2%, up to a maximum of 75%.
- Male workers: Receive 40% of the average monthly income used as the contribution base for 15 years of VSI. Each additional year up to the 20th year adds 1%. Beyond 20 years, each additional year adds 2%, up to a maximum of 75%.
4. Government Support
To encourage voluntary participation in social insurance, the government continues to subsidize a portion of the contribution amount based on the participant category:
- Poor households: Up to 30% contribution support.
- Near-poor households: 25% contribution support.
- Other individuals: 10% contribution support.
5. Additional Benefits
Besides receiving a pension upon retirement, VSI participants are entitled to the following benefits:
- Free health insurance (HI) coverage: Upon retirement, pensioners will receive a free health insurance card to ensure medical care. This significantly reduces medical expenses, especially in old age when healthcare needs increase.
- Survivor benefits: If a pensioner passes away, their family members may receive funeral allowances and survivor benefits as per regulations.
- Stable income after retirement: Although VSI is not mandatory, participation allows workers to accumulate contribution years for pension benefits, ensuring financial independence in old age without relying entirely on family or other income sources.
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