Vietnam: What are the regulations on the time, assistance rates and assistance methods for payment of voluntary social insurance?
What is the time for payment of voluntary social insurance in Vietnam?
Pursuant to Article 11 of the Process promulgated together with Decision 595/QD-BHXH 2017 on the time for payment of voluntary social insurance as follows:
- Time of payment of social insurance using the methods prescribed in Points 1.1, 1.2, 1.3, 1.4 and 1.5 Clause 1 Article 9 of this Decision shall be specified as follows:
+ Within a month in case of monthly payment;
+ Within 3 months in case of quarterly payment;
+ Within the first 4 months in case of biannual payment;
+ Within the first 7 months in case of annual payment;
- Time of payment of lump-sum contributions for multiple subsequent years or lump-sum contributions for the remaining years prescribed in Point 1.5 and 1.6 Clause 1 Article 9 of this Decision is the time of registration of the payment method and monthly income as the basis for payment of social insurance.
- If a participant fails to pay voluntary social insurance contributions within the period prescribed in Clause 1 of this Article, he/she will be considered to suspend the payment of voluntary social insurance contributions. If a person who is suspending the payment of voluntary social insurance contributions wishes to continue the payment, he/she shall re-register the method of payment and monthly income as the basis for payment of the voluntary social insurance. If he/she wishes to make payment for the months where he/she suspends the payment, the contributions to be paid will be equal to the total premiums of the months where he/she suspends the payment, plus the interest at the average monthly investment interest rate of the social insurance fund announced by the Vietnam Social Security in the year preceding the year of payment according to the following formula:
T3 = Md x (1+r)t
Where:
- T3: Contributions for months of late payment
- Mdd: The monthly contribution, quarterly contribution, biannual contribution or annual contribution prescribed in Clause 1 and Clause 2 Article 10 of this Decision.
- t: Number of months of late payment
- r: The average monthly investment interest rates of social insurance funds announced by the Vietnam Social Security in the year preceding the year of payment ( % per month).
Thus, the time for payment of voluntary social insurance is regulated as above.
What are the assistance rates for payment of voluntary social insurance in Vietnam?
Pursuant to the provisions of Article 12 of the Process attached to Decision 595/QD-BHXH in 2017 as follows:
- Assistance rates and participants entitled to the assistance:
+ Participants entitled to assistance and assistance rates provided by the State
Participants in voluntary social insurance shall receive the State’s assistance with insurance contributions in percentage (%) of monthly social insurance contributions based on the poverty line in rural areas. To be specific:
a) 30% for the participant who is in a poor household;
b) 25% for the participant who is in a near-poor household;
c) 10%, for other participants.
+ Amount of assistance:
a) The amount of assistance with the monthly premium shall be calculated as follows:
Mht = k x 22% x CN
Where:
- k: percentage of contributions covered by the state (%). To be specific: 30% for the participant in a poor household, 25% for the participant in a near-poor household and 10% for other participants)
- CN: Poverty line in rural area prescribed by the Prime Minister at the time of payment (VND per month).
b) The amount of assistance for a participant making quarterly payment, biannual payment, annual payment or lump sum payment for multiple subsequent years shall be calculated as follows:
Mht = n x k x 22% x CN
Where:
- n: Number of months of assistance in quarterly payment, biannual payment, annual payment or lump sum payment for multiple subsequent years respectively.
- k: percentage of contributions covered by the state (%). To be specific: 30% for the participant who is in a poor household, 25% for the participant who is in a near-poor household and 10% for other participants)
- CN: Poverty line in rural area prescribed by the Prime Minister at the time of payment (VND per month).
What are the regulations on the time and methods for assistance, and refund of social insurance contributions in Vietnam?
Pursuant to the provisions of Clauses 2, 3, 4, Article 12, the process attached to Decision 595/QD-BHXH in 2017 is as follows:
- The period of assistance shall depend on the actual period of participation in voluntary social insurance but not exceed 10 years (120 months).
- Methods for assistance
+ Participants in voluntary social insurance who are entitled to assistance shall pay the social insurance contributions under their responsibilities to social insurance authorities or authorized collectors;
+ Every 3 months, 6 months or 12 months, the social insurance authorities shall consolidate participants entitled to assistance, contributions collected from them and contributions funded by the state budget (using the specimen D06-TS) and submit it to the finance authority for transferring them to social insurance funds;
+ Finance authorities, according to the assignment of management of local budgets and tables consolidating participants entitled to assistance and funding for insurance premiums provided by the state budget submitted by the social insurance authorities, shall transfer the funding to social insurance funds before December 31 every year.
- Refund of social insurance contributions paid by the State
+ The contributions paid by the state budget regarding participants receiving lump sum social insurance benefits (except for people who are suffering from life-threatening diseases such as cancer, polio, cirrhosis of the liver, leprosy, severe tuberculosis, HIV/AIDS and other diseases prescribed by the Ministry of Health) and participants in voluntary social insurance whose are entitled to refund of partial paid contributions shall be refunded to the state budget.
+ The refunded contributions shall be equal to the social insurance contributions of participants in voluntary social insurance covered by the State.
Thus, the time and methods for assistance, and refund of social insurance contributions are specified as above.
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