Many retirees, like Nguyen Ngoc, 64, contemplate continuing to work to utilize their extensive experience and expertise. However, a common concern arises: Will signing a new labor contract affect their existing pension benefits?

Vietnam Social Insurance clarifies that individuals currently receiving a monthly pension are not subject to mandatory social insurance contributions, as stipulated in Point a, Clause 7, Article 2 of the Social Insurance Law 2024. This means that if a retired person signs a new labor contract, neither the individual nor the employer is required to pay mandatory social insurance for this additional working period. This exemption applies to contributions for retirement, survivorship, sickness, maternity, occupational accidents, and occupational diseases.

While retirees are exempt from mandatory social insurance contributions, their financial entitlements related to these benefits remain protected. Clause 3, Article 168 of the Labor Code 2019 mandates that for individuals not subject to mandatory social insurance, health insurance, or unemployment insurance, the employer must pay an additional amount. This sum, equivalent to the standard social insurance, health insurance, and unemployment insurance contributions, is disbursed concurrently with salary payments. Consequently, instead of contributing to various funds, employees directly receive this corresponding amount as part of their monthly income.

Furthermore, elderly employees who continue to work while receiving a pension enjoy several concurrent benefits. These include: continued pension benefits; receipt of salary, allowances, and other entitlements as per their new labor contract; continued use of health insurance cards issued by the Social Insurance agency without additional contributions at the new workplace; and the ability to negotiate reduced or part-time working hours with their employer to suit their health conditions.

The law also protects elderly workers by prohibiting employers from assigning them to heavy, hazardous, or dangerous jobs, or tasks that could negatively affect their health. This restriction applies unless all necessary safe working conditions are fully guaranteed as regulated by law.