What is the Monthly Social Retirement Allowance for Individuals Not Contributing to Social Insurance According to the Latest Proposal?
Subjects Entitled to Pension When Participating in Mandatory Social Insurance as Currently Regulated?
Pursuant to Article 53 of the 2014 Law on Social Insurance, regulations on subjects entitled to pension are as follows:
Subjects Entitled to Pension
Subjects entitled to pension are employees specified in Clause 1, Article 2 of this Law.
Referring to Clause 1, Article 2 of the 2014 Law on Social Insurance, the subjects entitled to pension policies include:
- Persons working under an indefinite-term labor contract, a definite-term labor contract, a seasonal labor contract, or a specific job labor contract with a term of between 03 months to less than 12 months, including labor contracts signed between the employer and the legal representative of persons under 15 years old as prescribed by labor law;- Persons working under a labor contract with a term from full 01 month to less than 03 months;- Officials and public employees;- Defense workers, public security workers, and other employees in cipher organizations;- Officers, professional soldiers of the People’s Army; officers, non-commissioned officers working in the technical field of the People’s Police; employees in cipher organizations receiving salaries similar to military personnel;- Non-commissioned officers, soldiers of the People’s Army; non-commissioned officers, soldiers of the People’s Police serving with a fixed term; military students, police students, cipher students receiving living allowances;- Persons working overseas under contracts as stipulated in the Law on Vietnamese Workers Working Overseas Under Contract;- Enterprise managers, cooperative executive managers receiving salaries;- Persons performing non-specialist activities in communes, wards, and commune-level towns.
How much is the monthly social pension benefit for persons not participating in social insurance?
Do persons not participating in social insurance still receive monthly social pension benefits?
The Draft Revised Social Insurance Law has dedicated a Chapter (Chapter III) to stipulate social pension benefits.
According to Article 26 of the Draft Revised Social Insurance Law, the conditions for receiving social pension benefits are proposed as follows:
Conditions for Receiving Social Pension Benefits
1. Subjects specified in Article 25 of this Law are entitled to social pension benefits if they meet the following conditions:
a) Aged 80 years or older;
b) Not receiving a pension, monthly social insurance benefits.
2. The Government of Vietnam shall stipulate in detail the point b Clause 1 of this Article and decide to gradually lower the age for receiving social pension benefits stipulated in point a Clause 1 of this Article according to the state budget's capacity in each period.
Referring to Article 25 of the Draft Revised Social Insurance Law, the content is as follows:
Applicable Subjects
Applicable subjects for social pension benefits are Vietnamese citizens aged 60 years or older and reaching retirement age as prescribed by law.
According to the above proposal, Vietnamese citizens who are not participating in social insurance, aged 80 years or older, and not receiving a pension or monthly social insurance benefits will be entitled to monthly social pension benefits.
What is the proposed monthly social pension benefit amount for persons not participating in social insurance but meeting eligibility criteria?
According to Article 27 of the Draft Revised Social Insurance Law, the monthly social pension benefit amount is regulated as follows:
Policies
1. Monthly Social Pension Benefits
Subjects specified in Article 26 of this Law are entitled to a monthly benefit amount of 500,000 VND/person.
2. Health Insurance
Persons receiving monthly social pension benefits shall be issued a health insurance card as prescribed by the law on health insurance.
3. Funeral Allowance
a) When persons receiving monthly social pension benefits die, the organizer of the funeral shall receive a one-time funeral allowance;
b) The funeral allowance is 10,000,000 VND.
4. The Government of Vietnam shall adjust the benefit amounts stipulated in Clause 1 and point b Clause 3 of this Article based on the increase of the consumer price index and economic growth appropriate to the state budget.
According to the above regulations, persons aged 80 or older, not participating in social insurance, and not receiving a pension will receive a state-funded monthly social pension benefit of 500,000 VND.
The age for receiving benefits may be lower, and the benefit amount may be higher, as proposed to be stipulated by the Government of Vietnam according to the state budget in each period.
Additionally, during the period of receiving monthly social pension benefits, if the benefit recipient passes away, the family members will receive a one-time funeral allowance of 10 million VND.
If the Draft Revised Social Insurance Law is approved by the National Assembly, the above content will take effect from January 1, 2025.
LawNet