Vietnam advances social insurance and wage reform policies

Vietnam is undergoing significant discussions regarding social insurance and wage reforms. Deputy Prime Minister Pham Thi Thanh Tra recently chaired a meeting with the Ministry of Home Affairs to develop a scheme for reforming wage and social insurance policies. This reform aims to adapt to labor market changes and an aging population, addressing issues such as wage correlations between different groups and job-based pay.

Regarding social security, new regulations are clarifying benefits for retirees. Under Decree 176/2025/ND-CP, individuals aged 70 to under 75 who are from poor or near-poor households are eligible for a social pension of 540,000 VND per month. Those aged 75 and older without a pension or social insurance benefits will automatically receive social pension benefits. Additionally, workers who have reached retirement age but lack the required 15 years of social insurance contributions may be eligible for monthly allowances from their existing contributions, which also includes state-funded health insurance.

Challenges remain in the implementation of social insurance. Issues include difficulties for companies attempting to register employees who are currently receiving unemployment benefits, and cases where employers fail to pay social insurance despite deducting funds from workers' salaries, preventing employees from accessing benefits or closing their insurance books.