Viet Nam's amended Social Insurance Law: a step towards universal coverage

Hanoi, VIET NAM (ILO News) – The International Labour Organization (ILO) congratulates Viet Nam on passing the amendment to the Law on Social Insurance adopted this past Saturday, 29 June. 

Over 93 per cent of the delegates attending the 15th National Assembly voted in favour of the proposed amendments to the Law, effectively adopting the amended Law. This new version of the Law is expected to come into effect in July 2025.

“The continuous efforts to amend the Social Insurance Law underlines the strong commitment of all stakeholders in Viet Nam to the continued strengthening of the country’s social protection system”, said ILO Viet Nam Country Director, Ingrid Christensen. She added that “the ILO is proud to be given the opportunity to provide technical support to this revision process and remains committed to supporting our Vietnamese constituents in their efforts to effectively implement the revised Law”.

© Viet Nam News Agency

The amendments take important strides towards the realisation of Viet Nam’s vision for its social insurance system set forth by Party Resolution No.: 28-NQ/TW (2018). At the same time, the approved changes bring Viet Nam closer to the achievement of the Sustainable Development Goals (SDGs), in line with International Labour Standards (ILS) and international best practices. The focus on a comprehensive and integrated approach ensures that Viet Nam’s social security system can address current challenges such as digitalization, climate change and population ageing.

Firstly, the amended Law promotes the creation of a true multi-tiered pension system in the country through, the integration of non-contributory pensions into the Law, and the creation of a “mixed” pension for workers with shorter contributory careers.

Secondly, a significant increase in pension coverage is expected, as the minimum period required for pension eligibility is reduced from 20 years to 15 years and the age limit for non-contributory pension is reduced from 80 years to 75 years of age.

Thirdly, the amended Law addresses decisively the issue of lump-sum withdrawals of social insurance contributions for most workers who join social insurance after the Law becomes effective, thus addressing one of the main challenges to social insurance coverage expansion in the country.

Fourthly, the Law extends the compulsory social insurance system legal coverage to new groups of workers, including household business owners, part-time workers and non-salaried managers of enterprises and cooperatives. The Government estimates that about 3 million workers will be covered by this change.

The amended Law has the potential to accelerate coverage expansion in the country whilst strengthening existing benefits for workers. At the same time, it will contribute to the country’s ongoing efforts to promote transitions from informal to formal employment by extending coverage to workers in the “missing middle” and to bring a positive and sustained impact on gender equality in the system.

© ILO

The revision of the Social Insurance Law has been a long, collaborative process, led by  the Ministry of Labour, Invalids and Social Affairs (MOLISA) in close collaboration and consultation with multiple stakeholders, including the National Assembly’s Social Affairs Committee, Viet Nam Social Security (VSS), as well as representatives of social partners, namely the Viet Nam General Confederation of Labour (VGCL), the Viet Nam Chamber of Commerce and Industry (VCCI) and the Viet Nam Cooperative Alliance (VCA) in representation of workers and employers, respectively, among others. The ILO support to the Law revision process, since its beginning in 2019, has included sharing of international best practices, provision of technical support and facilitating dialogues with a wide range of stakeholders at national and subnational level. Throughout this collaboration, the ILO social protection work in Viet Nam has benefitted from the financial support of the Government of Australia, the Government of Ireland, the Government of Japan, the European Union and the United Nations Sustainable Development Global Fund.

“The changes included in the amended Law represent a major achievement for Viet Nam and represent the culmination of a long-term collaborative process”, said André Gama, ILO Social Protection Programme Manager for Viet Nam.

“Furthermore”, he added, “these changes underline the vital role social protection plays in Viet Nam’s efforts to balance economic development with social development, in turn contributing to social justice. Only a balanced investment in both economic growth and social policies will allow Viet Nam to reach its ambition of becoming an upper-middle income country by 2030, and the ultimate goal of providing social protection for all.”

© ILO