Vietnam: Are redundant employees who have excess retirement but lack time to pay social insurance to enjoy pensions paid by the state?
- When will redundant employees who have excess retirement but lack time to pay social insurance to enjoy pensions in Vietnam?
- Will redundant employees who are reorganized by enterprises who do not meet the retirement age are entitled to any policies in Vietnam?
- How long does it take to pay voluntary social insurance to receive a pension in Vietnam?
When will redundant employees who have excess retirement but lack time to pay social insurance to enjoy pensions in Vietnam?
Note: The following analyzed regulations apply to redundant employees in one-member limited liability companies in which the State holds 100% of charter capital when performing ownership conversion or reorganization according to the plan approved by the competent authority.
Pursuant to Clause 3 Article 3 of Decree 97/2022/ND-CP stipulates as follows:
Policy for surplus workers last employed before April 21, 1998 or before April 26, 2002
redundant employees specified at Points a and b, Clause 1, Article 2 of this Decree are entitled to the following policies:
...
3. An employee who reaches the retirement age as prescribed in Clause 2, Article 169 of the Labor Code and Article 4 of Decree No. 135/2020/ND-CP but lacks a mandatory social insurance contribution period of up to 06 months to be eligible for pension, shall be paid once by the State for the missing months to the pension fund and die for settlement. pension scheme. The total amount paid by the State once for the missing months is equal to the total amount of social insurance contributions to the pension and death fund under the responsibility of the employee and the employer of the month preceding the employee's resignation multiplied by the number of missing months
Accordingly, redundant employees who are rescheduled by enterprises lack the time to pay social insurance, but this period is less than 06 months to be eligible for pensions, the State shall pay once for the missing months into the pension fund and die to settle the pension regime.
Vietnam: Are redundant employees who have excess retirement but lack time to pay social insurance to enjoy pensions paid by the state?
Will redundant employees who are reorganized by enterprises who do not meet the retirement age are entitled to any policies in Vietnam?
Pursuant to Article 3 of Decree 97/2022/ND-CP which stipulates as follows:
Policy for redundant workers last employed before April 21, 1998 or before April 26, 2002
redundant employees specified at Points a and b, Clause 1, Article 2 of this Decree are entitled to the following policies:
...
4. An employee who has excess specified at Point a, Clause 1, Article 2 of this Decree who is not eligible for the regime specified in Clauses 1, 2 and 3 of this Article shall terminate the labor contract and enjoy the following regime:
a) Job loss allowance specified in Article 47 of the Labor Code and Clause 2, Article 8 of the Government's Decree No. 145/2020/ND-CP dated December 14, 2020 detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations (hereinafter referred to as Decree No. 145/2020/ND-CP);
b) Support an amount equal to 0.05 of the average monthly minimum wage for each year of work at the reorganized enterprise.
5. An employee who has excess specified at Point b, Clause 1, Article 2 of this Decree who is not eligible for the regime specified in Clauses 1, 2 and 3 of this Article shall terminate the labor contract and enjoy the following regime:
a) Severance allowance specified in Article 46 of the Labor Code and Clause 1, Article 8 of Decree No. 145/2020/ND-CP;
b) Support an amount equal to 0.2 months' salary for each year of work at the enterprise performing the reorganization.
Accordingly, for employees with surplus due to reorganization by enterprises but not eligible for pension leave before age, they shall terminate the labor contract and enjoy the above-mentioned regimes.
How long does it take to pay voluntary social insurance to receive a pension in Vietnam?
Pursuant to Article 73 of the Law on Social Insurance 2014 (amended by Point c, Clause 1, Article 219 of the Labor Code 2019), there are conditions for enjoying pensions, including: Full retirement age as prescribed; Full 20 years of social insurance contributions or more.
This includes stating that employees receiving pensions must pay 20 years or more of social insurance contributions.
In addition, employees who want to be entitled to a salary must reach the retirement age as prescribed in Clause 2, Article 169 of the Labor Code 2019. Specifically, the retirement age of employees under normal working conditions is adjusted according to the roadmap until full 62 years old for male employees in 2028 and full 60 years old for female employees in 2035.
From 2021, the roadmap to increase the retirement age is implemented as follows: the retirement age of employees under normal working conditions is full 60 years and 03 months for male employees and full 55 years and 04 months for female employees; after that, every year increases by 03 months for male employees and 04 months for female employees.
Thus, in order to enjoy a pension under the social insurance regime, employees receiving pensions must pay for 20 years and reach the prescribed retirement age.
Decree 97/2022/ND-CP takes effect from January 15, 2023.
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