Does Vietnam Social Insurance propose a policy to raise the support level to 50% for voluntary social Insurance payers?
Does Vietnam Social Insurance propose a policy to raise the support level to 50% for voluntary social insurance payers?
In the morning of December 15, 2022, Vietnam Social Security organized the program "Giving social insurance books and health insurance cards to people in difficult circumstances" at the social insurance agency of Thu Duc City, Ho Chi Minh City. This is a program that is implemented synchronously from the central to provincial and district levels across the country.
Representative of Vietnam Social Insurance, Mr. Tran Dinh Lieu, Deputy General Director of Vietnam Social Insurance, said that Vietnam Social Insurance has proposed to the Government, ministries and branches to amend the Law on Social Insurance to come here in the direction of supporting people to participate in social insurance at a higher level and will likely increase the support level for participants of voluntary social insurance to 50%.
In addition, the pension policy will also ensure life when people reach the end of working age.
Thus, according to the above statement, Vietnam Social Insurance has proposed to the Government to increase the support level for people participating in voluntary social insurance to 50%.
Does Vietnam Social Insurance propose a policy to raise the support level to 50% for voluntary social Insurance payers?
What is the current voluntary social insurance premium?
Pursuant to Article 10 of Decree 134/2015/ND-CP of Vietnam stipulating as follows:
Premium
The voluntary social insurance premiums described in Clause 1, Article 87 of the Law on Social Insurance and according to the payment methods described in Clause 1, Article 9 of this Decree are specified as follows:
1. The monthly premium equals 22% of the monthly income decided by the voluntary social insurance participant.
The monthly income decided by a voluntary social insurance participant must at least equal the poverty line in rural areas as prescribed by the Prime Minister and must not exceed 20 times the statutory pay rate at the time of payment.
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Pursuant to Article 14 of Decree 134/2015/ND-CP of Vietnam stipulating as follows:
Assistance with social insurance premiums for voluntary social insurance participants
1. Assistance rates and persons eligible for assistance:
A voluntary social insurance participant receives the State’s assistance with premiums in percentage (%) of monthly social insurance premiums based on the poverty line in rural areas as prescribed in Clause 1, Article 10 of this Decree, to be specific:
a) 30%, for a voluntary social insurance participant who is in a poor household;
b) 25%, for a voluntary social insurance participant who is in a near-poor household;
c) 10%, for other persons.
Agencies, organizations and individuals are encouraged to provide assistance with social insurance premiums for voluntary social insurance participants.
Based on socio-economic development conditions and State budget capacity in each period, the Government shall consider adjusting the assistance rates for voluntary social insurance participants as appropriate.
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Thus:
Monthly payment rate = 22% x Monthly income level voluntarily selected by social insurance participants - the level of payment supported by the state.
In which:
- The income level chosen to pay the voluntary social insurance premium of the employee shall be decided by the employee himself.
- Level of state support for voluntary social insurance payment:
+ The support level is calculated as a percentage (%) of the monthly social insurance premium payment according to the poverty line of rural areas specified in Clause 1, Article 14 of Decree 134/2015/ND-CP of Vietnam as follows:
Support for poor households: 30% x 22% x 1,500,000 = 99,000 VND/month
Support for near-poor households: 25% x 22% x 1,500,000 = 82,500 VND/month
Other subjects are supported: 10% x 22% x 1,500,000 = 33,000 VND/month.
What is the current level of voluntary social insurance in Vietnam?
Pension rate:
Pursuant to Article 3 of Decree 134/2015/ND-CP of Vietnam, the monthly pension is calculated:
Pension = Enjoyment rate x Average monthly income on which social insurance premiums are based
Lump sum benefits upon retirement:
According to Clause 2, Article 75 of the 2014 Law on Social Insurance of Vietnam, the lump sum allowance is calculated as follows: Each year the participants of voluntary social insurance in Vietnam pay higher than the number of years corresponding to the 75% pension rate, which is calculated by 0.5 times the average monthly salary on which social insurance premiums are based.
Lump-sum social insurance benefits:
Pursuant to Clause 2, Article 60 of the 2014 Law on Social Insurance of Vietnam recorded as follows:
The lump-sum social insurance allowance shall be calculated based on the number of years of social insurance premium payment; for each year of payment it must equal:
- 1.5 times the average monthly salary on which social insurance premiums are based, for the years of payment prior to 2014;
- 2 times the average monthly salary on which social insurance premiums are based for the years of payment since 2014;
For a period of social insurance premium payment of under 1 year, the social insurance allowance must equal the paid premium amount but not exceed 2 times the average monthly salary on which social insurance premiums are based.
Funeral allowance
Pursuant to Article 80 of the 2014 Law on Social Insurance of Vietnam, the funeral allowance must equal 10 times the statutory pay rate of the month in which employees who have paid social insurance premiums for at least full 60 months or pensioners die.
When the persons paying voluntary social insurance premiums are declared dead by the court, their relatives are entitled to the allowance.
Survivorship allowance
Pursuant to Article 81 of the 2014 Law on Social Insurance of Vietnam, if a participant of voluntary social insurance is reserving the time of payment of social insurance but unfortunately dies, his/her family member is entitled to a survivorship allowance equal to:
- 1.5 times the average monthly income on which social insurance premiums are based for the years of payment prior 2014.
- 2 times the average monthly income on which social insurance premiums are based, for the years of payment since 2014.
- For employees who have paid social insurance premiums for under 1 year, the lump-sum survivorship allowance must equal the paid premium amount but not exceed 2 times the average monthly income on which social insurance premiums are based.
- For employees who pay both compulsory social insurance and voluntary social insurance premiums, the lump-sum survivorship allowance must equal at least 3 times the average monthly salary and income on which social insurance premiums are based.
The lump-sum survivorship allowance for relatives of persons who die while on pension shall be calculated based on these persons' period of pension enjoyment:
- If they die within the first 2 months of pension enjoyment, such allowance must equal 48 months’ current pension.
- If they die in subsequent months, the allowance shall be reduced by half the monthly pension for each additional month of pension enjoyment.
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