Starting October 5, 2026, new regulations regarding the payment of social pensions in Vietnam will come into effect, prioritizing the transfer of funds through bank accounts and social security accounts. This change is part of a broader effort to improve the efficiency and transparency of the social pension system.

According to Article 6 of the Decree detailing the implementation of certain provisions of the Social Insurance Law concerning social pensions, the funding for these pensions will be managed in accordance with state budget regulations. This includes not only the payment of pensions but also related activities such as public awareness campaigns, beneficiary assessments, and staff training.

One of the key highlights of the new regulations is the requirement that social pension payments be disbursed promptly and fully to the correct beneficiaries. Payments will be prioritized through bank accounts or social security accounts, although they may also be made via electronic payment systems or directly to recipients, depending on the agreements made with payment service providers.

This new regulation aims to promote cashless transactions, thereby increasing transparency and convenience for pension recipients. Payment service providers will need to meet specific criteria set by local authorities, and contracts must clearly outline the beneficiaries, payment methods, and responsibilities of all parties involved.

Furthermore, local authorities are required to ensure that funds for the upcoming month's payments are transferred before the 25th of each month. This includes any back payments and funeral expenses owed to beneficiaries. The local government will withdraw the necessary budget from the State Treasury, transfer it to the service provider, and compile a list of beneficiaries for payment.

Monthly, the payment service provider must compile a list of individuals who have received their payments, those who have not, and the remaining funds to be processed in the following month. Documentation of these transactions must be submitted to local authorities by the 20th of each month to ensure compliance with budgetary regulations.

This closed-loop process, from compiling beneficiary lists to monitoring payments and reconciling accounts, is designed to ensure that pension payments reach the right individuals on time, thus enhancing the overall integrity of the system. The Ministry of Finance has been tasked with providing guidance on the implementation of these funding regulations.