Are home-based salespersons eligible for a pension when they get old? How to get this pension?
Are home-based salespersons eligible to participate in social insurance?
Pursuant to Clause 1 Article 2 of the Law on Social Insurance 2014 of Vietnam, employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;
- Persons working under labor contracts with a term of between full 1 month and under 3 months;
- Cadres, civil servants and public employees;
- Defense workers, public security workers and persons doing other jobs in cipher organizations;
- Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;
- Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;
- Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;
- Salaried managers of enterprises and cooperatives;
- Part-time staffs in communes, wards and townships.
Simultaneously, Clause 4 Article 2 of the Law on Social Insurance 2014 has the following regulation: Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.
Thus, home-based salespersons do not fall into the cases where they must participate in compulsory social insurance as prescribed in Clause 1 Article 2 of the Law on Social Insurance. According to that, if they want to enjoy benefits from insurance, those who are not in Clause 1 of this Article can participate in voluntary social insurance if they are Vietnamese citizens aged full 15 years or older.
Are home-based salespersons eligible for a pension when they get old?
Is the retirement regime a part of the voluntary social insurance regime?
Pursuant to Clause 2 Article 4 of the Law on Social Insurance 2014 of Vietnam, voluntary social insurance covers the following regimes:
- Retirement;
- Survivorship allowance.
Thus, the retirement regime is one of the two regimes that the participants of voluntary social insurance are entitled to. This regime is aimed at ensuring income in old age for those who have reached the end of working age.
What are the conditions for pension enjoyment?
Pursuant to Article 73 of the Law on Social Insurance 2014 of Vietnam, conditions for pension enjoyment are defined as follows:
1. A worker will receive retirement pension when he/she (amended by Point c Clause 1 Article 219 of the Labor Code 2019 of Vietnam):
a) reaches the retirement age specified in Clause 2 Article 169 of the Labor Code; and
b) has paid social insurance for at least 20 years.
2. Employees who satisfy the age requirement specified at Point a, Clause 1 of this Article but have paid social insurance premiums for under 20 years may continue paying social insurance premiums until the payment period reaches full 20 years in order to enjoy pension.
Retirement ages are stipulated in Clause 2 Article 169 of the Labor Code 2019 of Vietnam:
“2. Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.
From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.”
According to that, the retirement age is being adjusted by law each year, according to the roadmap until 2035, specifically:
- Male employees: 60 years and 06 months;
- Female employees: 55 years old and 08 months;
In addition to meeting the age prescribed by law, social insurance participants must have paid full 20 years of social insurance premiums or more in order to enjoy the pension when growing old. Thus, for small business persons in particular and Vietnamese people in general, if anyone has the need and is old enough to participate in social insurance, they are encouraged to participate.
Thư Viện Pháp Luật
