Proposal on how to calculate one-time allowance upon retirement for people who continue to pay social insurance

On October 21, continuing the 2nd Session, the 16th National Assembly listened to Minister of Home Affairs Nguyen Tien Hai present the Submission on the draft Law amending and supplementing a number of articles of the Law on Social Insurance (BHXH).

In which, the Government proposes to amend and supplement Clause 2, Article 68 of the 2024 Law on Social Insurance regarding the level of one-time allowance upon retirement.

According to the draft, the level of one-time allowance for each year of social insurance contribution is 0.5 times higher than the number of years specified in Clause 1, Article 68, equal to the average salary as the basis for social insurance contribution specified in Article 72 of this Law for each year of contribution higher than the retirement age according to the provisions of law.

Notably, the draft stipulates that in cases where employees have met the conditions to receive pensions according to Articles 64 and 65 of the Law on Social Insurance and continue to pay social insurance, the allowance level is equal to 2 times the average salary level used as the basis for social insurance contributions specified in Article 72 for each year of contribution exceeding the number of years specified in Clause 1, Article 68.

The time calculated in this case is from after reaching retirement age according to the provisions of law to the time of retirement corresponding to the case of retirement according to Article 64 or Article 65.

The draft also proposes regulations on how to calculate the level of one-time allowance for cases with social insurance contributions before and after reaching retirement age.

Accordingly, if the social insurance contribution period before reaching retirement age has odd months, these odd months are transferred to the contribution period after reaching retirement age to calculate the level of one-time allowance.

In Official Dispatch No. 802/TTr-CP dated October 1, 2026, the Government stated that the amendment and supplementation of Clause 2, Article 68 is to ensure regulations on the level of one-time allowance when retiring corresponding to cases of retirement according to Article 64 or Article 65 of the Law on Social Insurance.

This content belongs to the group of amendments and improvements on social insurance regimes and policies to ensure consistency in the provisions of the Law and create a legal basis for agencies in the process of implementation.

According to the draft, if passed by the National Assembly, the Law amending and supplementing a number of articles of the Law on Social Insurance is expected to take effect from March 1, 2027.

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