The Vietnamese government has announced the minimum pension amount for the year 2027, which will be set at the base salary level. This decision is part of the ongoing reforms in the social insurance system, aiming to secure financial stability for retirees.

Individuals who have participated in mandatory social insurance and meet the retirement criteria will benefit from this minimum pension, which is currently aligned with the base salary. For instance, an individual who retires early due to health issues may see their pension adjusted based on their average salary contributions, but they will still be guaranteed a minimum pension equivalent to the base salary.

As of May 2025, one retiree, referred to as Mr. D, retired eight years early due to an 81% health decline. His monthly pension was calculated at 56% of his average salary used for social insurance contributions. However, due to the early retirement penalty of 16%, his final pension was reduced to 40% of his average salary, amounting to over 1.7 million VND per month.

Under the current regulations, the minimum pension for individuals participating in mandatory social insurance is defined by Article 56 of the 2014 Social Insurance Law. This law ensures that retirees receive at least the base salary, which at that time was 2.34 million VND per month.

With the upcoming 2024 Social Insurance Law, concerns have arisen regarding the absence of a minimum pension threshold. The new law does not specify a minimum monthly pension, which has caused anxiety among those who have contributed at lower salary levels. Nevertheless, a transitional provision ensures that workers who have contributed for at least 20 years before July 1, 2025, will still receive a pension at least equivalent to the reference salary.

This provision applies to various groups, including permanent and temporary contract workers, civil servants, military personnel, and others involved in social insurance before the specified date. The reference salary, determined by the government, will continue to be linked to the base salary until it is abolished.

As a result, workers who have contributed to the mandatory social insurance for over 20 years and are eligible to retire in 2027 will still receive a minimum pension of at least 2.53 million VND per month, ensuring a basic level of financial support for retirees.