Amendments to the Social Insurance Regime as from 01 July 2025

From 01 July 2025, the Law on Social Insurance No. 41/2024/QH15 (“Law on Social Insurance”) shall officially take effect, resulting in various changes in the policies on supporting employees in cases of hardship. The following article will provide an analysis of the key amendments to the social insurance regime and their direct impact on employees’ entitlements.

First, changes to the sickness benefits regime

One of the notable new provisions under the sickness benefits regime is that the employee will no longer be subject to a limitation on the time of absence for treatment if, after the maximum entitlement period has passed, the employee still needs protracted medical care. In such a case, the employee shall remain entitled to sickness allowance, with the specific benefit level depending on the duration of his/her participation in the social insurance scheme. Specifically:

• For a contribution period of 30 years or more: entitled to 65% of the wage used as the basis for social insurance contributions;
• From 15 years up to less than 30 years: entitled to 55%;
• Less than 15 years: entitled to 50%.

In addition, with respect to this matter, there are several other important adjustments:

• Employees taking sick leave for 14 working days or more in the first month of employment or the first month of returning to work shall still incur the obligation to pay social insurance contributions;
• Employees taking sick leave for less than half a working day shall be entitled to a half-day sickness allowance, and shall be entitled to a one-day sickness allowance in cases of taking sick leave from half a working day up to less than one working day.

Second, changes to the maternity benefits regime

The maternity regime modifications and supplements have improved the conditions for female employees to exercise their rights to maternity leave and benefits, while also broadening the scope and level of protection for female employees’ entitlements. Specifically:

• Female employees are entitled to up to 05 antenatal check-ups, with each leave not exceeding 02 days.
• In cases where leave is required for infertility treatment: if employee has contributed compulsory social insurance for at least 06 months within the 24 consecutive months prior to childbirth, she shall still be entitled to maternity benefits.
• In cases where the pregnancy has reached at least 22 weeks but results in miscarriage, abortion, stillbirth in utero, or stillbirth during delivery: both the female employee and her husband shall be entitled to maternity leave and benefits as in the case of normal childbirth.
• In addition, voluntary social insurance participants, or participants who have periods of both compulsory and voluntary social insurance contributions amounting to at least 06 months within the 12 months prior to childbirth, shall also be entitled to maternity benefits.

Third, changes to occupational accidents and occupational disease

The Law on Social Insurance has introduced important amendments to the regime on occupational accidents and diseases, including an expansion of the scope of beneficiaries. Notably, cases where an employee suffers an accident on a reasonable route between his/her residence and the workplace, or vice versa, shall no longer be considered occupational accidents but shall instead fall under the sickness benefits regime. In such cases, the employee shall be entitled to an allowance equal to 75% of the wage used as the basis for social insurance contributions during the period of medical treatment and absence from work.

Fourth, changes to the retirement benefits

Pursuant to the new regulations, employees who have contributed to compulsory social insurance for at least 15 years shall be entitled to a pension. However, the monthly pension rate differs between male and female employees, specifically as follows:

For the female employees:

• With a contribution period of 15 years, they shall be entitled to 45% of the average wage used as the basis for social insurance contributions;
• For each additional year of contribution, 2% shall be added;
• The maximum entitlement shall not exceed 75%.

For the male employees:

• With a contribution period from 15 years up to less than 20 years, they shall be entitled to 40%, plus 01% for each additional year of contribution;
• With a contribution period of 20 years, they shall be entitled to 45%, plus 2% for each additional year of contribution;
• The maximum entitlement shall not exceed 75%.

Fifth, changes to the survivorship allowance

The scope of beneficiaries of the survivorship allowance upon the death of a social insurance participant has been expanded to cover three groups: dependents, heirs, and individuals or organizations responsible for funeral arrangements. The age requirement for dependents eligible for this benefit has been aligned with the statutory retirement age under the Labor Code 2019.

In addition, the amount of the survivorship allowance shall be determined by reference to a replacement index instead of the statutory base salary, to safeguard the entitlements and the actual value of the allowance for beneficiaries.

In general, the amendments to the social insurance regime not only contribute to the improvement of the legal framework on social security, but also provide more practical protection for employees. From sickness and maternity benefits to pension and survivorship allowances, all regimes have been adjusted towards better safeguarding legitimate rights and interests, thereby enabling employees to feel secure in their work, stabilize their lives, and remain committed to long-term participation in the social insurance system.

Time of writing: 18 August 2025.