The government has just issued Decree 85/2026/ND-CP on supplementary retirement insurance (effective from May 10, 2026).
Accordingly, employers and employees who have participated in mandatory social insurance can voluntarily participate in supplementary retirement insurance implemented by retirement fund management companies through their employers.
Based on labor management requirements and financial capabilities, employers develop written agreements regarding participation in supplementary retirement insurance and make supplementary retirement insurance contributions for their employees.
The amount of supplementary retirement insurance contributions will be mutually agreed upon by the employer and the employee on a voluntary basis.
The amount of supplemental retirement insurance benefits paid from the retirement fund depends on the value of the individual's retirement account at the time of payment, the payment regulations of the supplemental retirement insurance program, and the provisions in the written agreement between the employee and the employer regarding participation in the supplemental retirement insurance.
Workers participating in supplemental retirement insurance can choose to receive monthly payments, lump-sum payments, or a combination of both.
The process for enrolling in supplemental retirement insurance:
- The employer shall draft a written agreement and notify the employees, seeking their opinions. After reaching a consensus, the employer shall sign the agreement on participation in supplementary retirement insurance with each employee or with the Chairman of the Trade Union after obtaining the collective opinion of the employees, based on the principles of voluntariness, equality, good faith, cooperation, and honesty. The basic content of the agreement shall comply with the provisions in the Appendix attached to this Decree.
- Employers sign contracts with pension fund management companies to participate in the supplementary retirement insurance program. Based on the list of employees participating in the program, the pension fund management company opens individual retirement accounts for the employees.
- Based on the registered supplementary retirement insurance program and the written agreement with the employee, the employer pays the employer's contribution (if any) and the employee's entrusted contribution (if any) to the supplementary retirement insurance fund and informs the retirement fund management company of the amount contributed for each employee as prescribed.
- The amount contributed to each individual retirement account of the fund participant includes the employer's contribution to the employee (if any); and the employee's contribution (if any).
