The Ministry of Home Affairs has proposed adjustments to several policies and regimes within the draft Law amending and supplementing certain articles of the Social Insurance Law, which is currently under appraisal. These proposed changes come after one year of the law's implementation.

Specifically, the drafting agency proposes rounding contribution periods for pension benefit calculations when odd months are involved. Under the proposal: one to three odd months would be counted as 0,25 years; four to six months as 0,5 years; seven to nine months as 0,75 years; and ten to eleven months as a full year. This rounding aims to ensure equitable benefits for retirees and align with existing regulations, which allow the smallest pension benefit to be calculated down to 0,25%.

The current law stipulates that the minimum social insurance contribution period required for pension eligibility and monthly survivor benefits is calculated in full years, with each year requiring 12 months. For benefit calculation purposes, odd contribution months are currently rounded as follows: one to six months are counted as a half-year, while seven to eleven months are rounded up to a full year.

For instance, under current regulations, a contribution period with one or six odd months is rounded to a half-year. However, according to the drafting committee's proposal, an individual with five odd months would still be rounded to a half-year, but those contributing for fewer than three months would have their period calculated as 0,25 years, rather than the current half-year rounding.

Elderly residents in Hanoi completing procedures for pension authorization, 6/2026. *Photo: Thu Huong*

For voluntary sector workers, the current law allows a one-time contribution for missing years, up to five years, to meet pension eligibility. The payment deadline is the month immediately preceding the worker's retirement age. The draft law proposes shifting this payment deadline to the actual month of retirement, aiming to standardize benefit entitlements across all participant groups.

For example, Ms. Trang reaches retirement age in 7/2026 but lacks 12 months of social insurance contributions for pension eligibility. Under the current law, she could make a one-time payment for the missing 12 months in 6/2026. However, under the draft proposal, she would make this payment in 7/2026.

For certain groups in the mandatory sector who do not receive wages for 14 or more working days in a month, the current law exempts both the employee and employer from social insurance contributions for that month, unless both parties agree to continue contributing. The draft law adds a new responsibility for employers to contribute social insurance for employees on sick leave for 14 or more working days.

Additionally, the drafting agency proposes empowering the government to reduce the social pension age to 70, depending on conditions during each period. Other proposals include decoupling the reference level for social insurance contributions and benefits from the basic salary, and removing the one-year limit on pension authorization forms. The draft law is expected to be submitted to the National Assembly for feedback and approval during the October session, with an effective date of 1/3/2027.

By the end of Quarter I/2026, a total of 3,5 million people nationwide were receiving pensions and monthly social insurance benefits.

Hong Chieu