Voluntary social insurance helps secure pensions and healthcare in old age

Voluntary social insurance (VSI) is a key social security policy introduced by the Party and State to provide workers in the informal sector and freelancers with an opportunity to receive a monthly pension and a free health insurance (HI) card in old age.

Expanding access to benefits for freelance workers

Ho Thi Tu, Deputy Head of the Communications and Participant Support Division at Dong Nai Social Security, promotes voluntary social insurance policies among association members and farmers. Photo: Hanh Dung.

Ho Thi Tu, Deputy Head of the Communications and Participant Support Division at Dong Nai Social Security, said VSI is available to Vietnamese citizens aged 15 or older who are not subject to compulsory social insurance and are not currently receiving a pension, social insurance allowance or monthly allowance.

Eligible participants include a wide range of workers, including those working under indefinite-term employment contracts, fixed-term employment contracts of at least one month, and public employees whose employment or working contracts have been temporarily suspended.

One of the key features of VSI is its flexible contribution structure. Monthly contributions are equivalent to 22% of the monthly income selected as the basis for social insurance contributions. Participants can choose their contribution base. The minimum is equal to the rural poverty-line income, currently VND1.5 million per month, while the maximum is 20 times the reference amount (formerly the statutory base salary) applicable at the time of contribution.

To support and encourage participation, the State provides contribution subsidies calculated as a percentage of the monthly contribution based on the rural poverty-line income.

Specifically, the subsidy is 50% for participants from poor households, 40% for participants from near-poor households, 30% for ethnic minority participants and 20% for other participants.

Participants also have a range of payment options. They can pay monthly, every three months, every six months or annually, or make a lump-sum payment for multiple future years, for up to five years. Those who have reached retirement age but have fewer than 10 years of contributions remaining can make a one-time payment for the outstanding period to complete 20 years of contributions and become eligible for a pension.

Diverse benefits and attractive entitlements

Eligible VSI participants receive free health insurance cards, helping reduce the burden of medical expenses in old age. Photo: Hanh Dung.

Ho Thi Tu said VSI provides workers with a full range of practical social security benefits, including maternity allowances, retirement benefits, free health insurance cards and survivor benefits.

For the maternity allowance, in particular, female participants who give birth and male participants whose wives give birth are eligible if they have made voluntary social insurance contributions — or a combination of compulsory and voluntary contributions — for at least six months within the 12 months preceding the birth. The allowance is VND2 million for each child born or for each fetus of 22 weeks' gestation or more that dies in the womb or during labor.

Regarding retirement benefits, since July 1, 2025, voluntary social insurance participants have been eligible for a pension after completing at least 15 years of social insurance contributions and reaching the statutory retirement age. The retirement age, under the roadmap beginning January 1, 2025, is 61 years and three months for men, increasing by three months each year until reaching 62 in 2028. For women, the retirement age is 56 years and eight months, increasing by four months each year until reaching 60 in 2035.

The monthly pension is calculated by multiplying the applicable pension rate by the average monthly income used as the basis for social insurance contributions. The pension rate is 45% for 15 years of contributions for women and 20 years for men. For each additional year of contributions, the rate increases by 2%, up to a maximum of 75%.

People receiving pensions under VSI are provided with free health insurance cards by the social security agency, with a high level of health insurance coverage, helping ease medical expenses in old age. In addition, monthly pensions are periodically adjusted by the State based on consumer price changes and economic growth, helping maintain a stable standard of living for pensioners.

Ho Thi Tu stressed that if a voluntary social insurance participant who has made contributions for at least 60 months, or a pensioner, dies, eligible family members are entitled to a funeral allowance equal to 10 times the reference amount applicable in the month of death. Family members of a deceased voluntary social insurance participant who was still making contributions or had preserved their contribution period are also entitled to a lump-sum survivor allowance. The amount is calculated based on the number of years of social insurance contributions.

“Voluntary social insurance is not intended for profit but aims to provide sustainable social security. Joining voluntary social insurance today is an investment in the future stability of individuals and their families,” Ho Thi Tu said.

People can register directly at social security agencies, social insurance and health insurance collection service organizations, or post offices. They can also register online through the National Public Service Portal or the Vietnam Social Security Public Service Portal. Participants can track and check their contribution and benefit records anytime and anywhere via the VssID – Digital Social Security application or the baohiemxahoi.gov.vn website. They can also call the 1900 9068 hotline for assistance.

By Hanh Dung - Translated by Mai Nga, Thu Ha