Vietnam: In 2024, what are the voluntary social insurance premium rates? In 2024, what is the monthly voluntary social insurance premium?
In 2024, what are the voluntary social insurance premium rates in Vietnam?
Under Article 3 of the Law on Social Insurance 2014, social insurance means the guarantee to fully or partially offset an employee’s income that is reduced or lost due to his/her sickness, maternity, occupational accident, occupational disease, retirement or death, based on his/her contributions to the social insurance fund.
Voluntary social insurance means a form of social insurance organized by the State in which a participant may select a premium rate and a method of premium payment suitable to his/her income and the State supports his/her payment of social insurance premiums for him/her to enjoy retirement and survivorship allowance benefits
Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and are not subject to compulsory social insurance.
The voluntary social insurance premium rate shall be calculated based on the monthly income selected by employees.
Specifically, in Clause 1, Article 10 of Decree 134/2015/ND-CP, the voluntary social insurance premium rates in Vietnam are specified as follows:
Payment method | Voluntary social insurance premium | Notes |
Monthly Payment | The monthly premium equals 22% of the monthly income decided by the voluntary social insurance participant | - For a voluntary social insurance participant who receives the State’s assistance with premiums, the monthly premium shall not include the amount covered by the State. - 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. |
The premiums for every 3, 6 or 12 months | The premium for every 3, 6 or 12 months equals the monthly premium multiplied by 3, 6, 12 respectively. | - During the payment period, if the Prime Minister adjusts the poverty line in rural areas, payment of the difference is not required. - During the payment period, he/she shall have part of the paid premiums refunded if during that period he/she: - switches over from voluntary social insurance to compulsory social insurance; - receives lump-sum social insurance payout; - dies or is declared dead by the court. |
The lump-sum premiums for multiple subsequent years | The lump-sum premiums for multiple subsequent years equal the monthly premium multiplied by total number of months of these years and apply a discount at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment | - During the payment period, he/she shall have part of the paid premiums refunded if during that period he/she: - switches over from voluntary social insurance to compulsory social insurance; - receives lump-sum social insurance payout; - dies or is declared dead by the court. |
The lump-sum premiums for the remaining years | The lump-sum premiums for the remaining years equal the total monthly premiums of the remaining period plus interest at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment. |
Note: The monthly income decided by a voluntary social insurance participant must not exceed 20 times the statutory pay rate at the time of payment.
Under Resolution 104/2023/QH15, officially from July 1, 2024, the salary reform policy will be implemented according to Resolution 27-NQ/TW in 2018. Specifically, the statutory pay rate will be abolished.
Therefore, from July 1, 2024, the regulation on the highest monthly income for voluntary social insurance premium payment will no longer be appropriate, there needs to be specific regulations to guide implementation.
Is it allowed to change the method of paying voluntary social insurance premiums in Vietnam?
Under the provisions in Article 11 of Decree 134/2015/ND-CP as follows:
Change of payment method and monthly income on which voluntary social insurance premiums are based
Voluntary social insurance participants may change the payment method or monthly income on which voluntary social insurance premiums are based. This shall be made only after having completed the previously selected payment method.
Thus, according to the above regulations, voluntary social insurance participants in Vietnam can change the payment method after complying with the previously registered payment method.
What are the voluntary social insurance benefits in Vietnam?
Under the provisions of Clause 2, Article 4 of the Law on Social Insurance 2014 as follows:
Social insurance benefits
1. Compulsory social insurance covers the following benefits:
a/ Sickness;
b/ Maternity;
c/ Occupational accident and occupational disease;
d/ Retirement;
dd/ Survivorship allowance.
2. Voluntary social insurance covers the following benefits:
a/ Retirement;
b/ Survivorship allowance.
3. The supplementary retirement scheme shall be stipulated by the Government.
Thus, the voluntary social insurance benefits in Vietnam include:
- Retirement benefits;
- Survivorship allowance.
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