Vietnam: What are social pension benefits? Who is entitled to social pension benefits under the latest proposal?
- What are social pension benefits in Vietnam?
- What schemes does the proposed social pension in Vietnam include?
- Who is entitled to social pension benefits under the latest proposal in Vietnam?
- What is the proposal to apply the support regime for employees who are not eligible for pensions and are not old enough to receive social pension benefits in Vietnam?
What are social pension benefits in Vietnam?
Currently, the law on social insurance does not provide for pension benefits. However, social pension benefits have been proposed to be added to the Draft Law on Social Insurance in Vietnam.
Specifically, Clause 2, Article 3 of the Draft Law on Social Insurance in Vietnam mentions social pension benefits as follows:
Social pension is a policy in which the state budget of Vietnam provides a pension to the elderly without a pension or other monthly social insurance.
Accordingly, in order to reform the social insurance policy for social security guarantees, and build a multi-layered social insurance system, the pension pension regime has been proposed to apply to the elderly without pensions, or monthly social insurance.
Vietnam: What are social pension benefits? Who is entitled to social pension benefits under the latest proposal?
What schemes does the proposed social pension in Vietnam include?
Pursuant to the contents of Article 27 of the Draft Law on Social Insurance in Vietnam, there is a proposal for social pension benefits including the following regimes:
- Monthly social pension
Subjects specified in Article 26 of the Draft Law on Social Insurance in Vietnam are entitled to a subsidy equal to VND 500,000/person/month.
- Health insurance
Persons who are receiving monthly social pension benefits are granted health insurance cards in accordance with the law on health insurance.
- Funeral allowance
+ The person who is receiving social pension benefits dies, the person who is in charge of the burial is entitled to receive a funeral allowance;
+ The funeral allowance is equal to 10,000,000 VND.
Who is entitled to social pension benefits under the latest proposal in Vietnam?
Based on the proposed contents in Article 26 of the Draft Law on Social Insurance in Vietnam, it is stated as follows:
Conditions for enjoying social pension benefits
1. Subjects specified in Article 25 of this Law are entitled to social pension benefits when they fully meet the following conditions:
a) Be at least 80 years old;
b) There is no pension or other monthly social insurance allowance.
2. The Government shall detail Point b, Clause 1 of this Article and decide to gradually reduce the age of social pension benefits at Point a, Clause 1 of this Article in accordance with the capacity of the State budget of Vietnam from time to time.
Accordingly, beneficiaries of social pension benefits are Vietnamese citizens who reach the prescribed retirement age and meet the following conditions:
- Be at least 80 years old;
- No pension, other monthly social insurance benefits.
In the future, the Government will gradually reduce the age of social pension benefits in accordance with the capacity of the State budget of Vietnam from time to time.
What is the proposal to apply the support regime for employees who are not eligible for pensions and are not old enough to receive social pension benefits in Vietnam?
Pursuant to Article 29 of the Draft Law on Social Insurance in Vietnam, it is proposed as follows:
The regime for employees who are not eligible for pensions and are not old enough to receive social pension benefits is as follows:
1. Subjects specified in Article 25 of this Law are not eligible for pensions and are not eligible for social pension benefits as prescribed in Clause 1, Article 26 of this Law have a period of social insurance contributions, if they wish, they will be entitled to monthly allowances in the period before reaching the age of social pension benefits.
The period of entitlement, the monthly allowance depends on the total payment period, based on the month of social insurance contribution of the employee.
2. The monthly allowance is calculated as the social pension level specified in Clause 1, Article 27 of this Law.
In case the monthly allowance is calculated equal to the social pension allowance for the period from the time of full retirement age to the full age of social pension benefits but still the total amount calculated for the contribution period, based on the month of the employee's social insurance contributions, the employee will be entitled to a monthly allowance at the same rate higher.
3. In case an employee who is receiving a monthly allowance dies, the employee's relatives shall be entitled to a one-time allowance for the months that have not been received and receive a funeral allowance if he/she meets the conditions specified at Point a, Clause 1, Article 90, Point a, Clause 1, Article 115 of this Law.
4. During the period of receiving monthly allowances, employees are entitled to health insurance guaranteed by the state budget of Vietnam.
5. Detail this Article.
Accordingly, there is currently a proposal to stipulate the regime for employees who are not eligible for pensions and are not old enough to receive social pension benefits as follows:
- Subjects specified in Article 25 of the Draft Law on Social Insurance in Vietnam are not eligible for pensions and are not eligible for social pension benefits with a period of social insurance contributions, if they wish, they will be entitled to monthly allowances in the period before reaching the age of social pension benefits.
The period of entitlement, the monthly allowance depends on the total payment period, based on the month of social insurance contribution of the employee.
- The monthly allowance is calculated as the social pension level specified in Clause 1, Article 27 of the Draft Law on Social Insurance in Vietnam.
In case the monthly allowance is calculated equal to the social pension allowance for the period from the time of full retirement age to the full age of social pension benefits but still the total amount calculated for the contribution period, based on the month of the employee's social insurance contributions, the employee will be entitled to a monthly allowance at the same rate higher.
- In case the employee who is receiving a monthly allowance dies, the employee's relatives shall be entitled to a one-time allowance for the months that have not been received and be entitled to a funeral allowance if he/she meets the conditions specified at Point a, Clause 1, Article 90, Point a, Clause 1, Article 115 of the Draft Law on Social Insurance in Vietnam.
- During the period of monthly allowance, employees are entitled to health insurance guaranteed by the state budget of Vietnam.
LawNet