Workers gain additional pension benefits from May 10

A significant development for Vietnamese workers is the upcoming implementation of a supplementary pension scheme, as detailed in Decree 85/2026/NĐ-CP. This initiative, set to take effect on May 10, 2026, promises to provide a much-needed additional avenue for long-term financial accumulation, complementing the existing social insurance pension. From our perspective at Tuổi Trẻ, this represents a positive step towards enhancing the financial security of our citizens in their retirement years.

The voluntary nature of this supplementary pension is a key feature, allowing individuals to engage based on their personal financial planning and in agreement with their employers, or directly with fund management enterprises. Crucially, the decree explicitly prohibits employers from discriminating against or obstructing employees' legal rights and interests related to this scheme. This ensures that participation in supplementary pensions does not negatively impact employment terms, performance reviews, or benefits, fostering a fair environment for all.

Each participant will maintain a personal pension account, transparently recording all contributions, investment outcomes, and associated costs. The funds will be managed and invested according to market principles, emphasizing transparency, safety, and asset value growth over time. The flexibility in contribution levels, agreed upon voluntarily between employees and employers, allows for tailored financial strategies. Conditions for receiving employer contributions and investment returns, including a potential minimum work period not exceeding five years, are clearly outlined, providing a framework for mutual understanding and commitment.

This new pension channel is designed to provide tangible benefits not only during retirement but also in specific life circumstances such as death, critical illness, significant work capacity reduction, or severe disability. It also caters to foreign workers who may no longer reside in Vietnam or whose work permits expire without renewal. The investment portfolio for these supplementary pension funds is diverse, including government bonds, Treasury bills, state treasury bonds, bank deposits, and listed stocks and bonds, offering a balanced approach to wealth generation. The multi-layered supervision mechanism involving the Ministry of Finance and independent giám sát banks ensures the safety and integrity of the funds, a critical aspect for public trust. This contrasts with some Western approaches that might rely more heavily on individual private savings without such structured, state-overseen supplementary schemes.