What are the social insurance principles in Vietnam? What are the procedures for registering and issuing Social Insurance books?
What are the procedures for registering and issuing Social Insurance books in Vietnam?
Pursuant to Section 1 of Part B in the Administrative Procedures issued with Decision 1318/QD-BHXH in 2023, the sequence of procedures for registering and issuing Social Insurance books is as follows:
Step 1: Preparation and submission of documents
- Compulsory participants of Social Insurance must prepare the required documents and submit them to the managing authority
- Vietnamese guest employees:
+ If contributions are made through the employing organization of Vietnamese guest employees: Prepare the required documents, submit them, and make payments to the managing authorit.
+ If contributions are made directly to the Social Insurance agency at the previous place of residence of Vietnamese guest employees: Prepare the required documents, submit them, and make payments to the Social Insurance agency.
+ If the employment contract is extended or a new labor contract is signed immediately upon returning to the home country: Prepare the required documents, submit them, and make payments to either the organization or the Social Insurance agency
- Spouses or husbands receiving benefits at the representative office of Vietnam abroad: Prepare the required documents, submit them, and make payments to the managing authority.
- For employees who still lack a maximum of 06 months to be eligible for retirement or monthly disability benefits:
The employee or the deceased employee's family member must prepare the required documents, submit them, and make payments to the pension and death benefit fund through the Social Insurance agency at the place of residence or through the organization before leaving employment
- Employees with duplicate Social Insurance books: Prepare the required documents and submit them directly to the Social Insurance agency at the place of management or residence
Step 2: The Social Insurance agency receives and processes the documents according to regulations.
Step 3: Receive the results, including the Social Insurance book, the Decision on reimbursement (if applicable), and the reimbursement for duplicate contributions (if applicable).
Note: The processing time for the registration and issuance of Social Insurance books starts from the date the Social Insurance agency receives all the required documents according to regulations:
- For issuing new Social Insurance books: Not exceeding 5 days.
- For temporarily suspending contributions to the pension and death benefit fund: Not exceeding 5 days.
- For violations of Social Insurance contribution regulations: Not exceeding 10 days.
- For adjusting and increasing the contribution amount: Not exceeding 3 days.
- For confirming the Social Insurance book: Not exceeding 5 days.
- For reimbursements due to duplicate contributions: Not exceeding 10 days.
What are the social insurance principles in Vietnam? What are the procedures for registering and issuing Social Insurance books in Vietnam? (Image from the Internet)
What are the social insurance principles in Vietnam?
Pursuant to Article 5 of the Law on Social Insurance 2014, social insurance principles are as follows:
- Levels of social insurance allowances shall be calculated based on the social insurance premium rate, the premium payment period and the sharing among the insured.
- The compulsory social insurance premium rate shall be calculated based on an employee’s monthly salary. The voluntary social insurance premium rate shall be calculated based on the monthly income selected by employees.
- Employees who pay both compulsory and voluntary social insurance premiums are entitled to the retirement benefits and survivorship allowance benefits based on their period of social insurance premium payment. The period of social insurance premium payment already calculated for enjoying a lump-sum social insurance allowance shall not be included in the period used to calculate social insurance benefits.
- The social insurance fund shall be managed in a centralized, uniform, public and transparent manner; used for proper purposes and independently accounted by component funds and groups of the insured subject to the state- prescribed salary benefits and the employer-decided salary benefits.
- Social insurance shall be implemented in a simple, easy and convenient manner, promptly and fully ensuring the interests of the insured.
Vietnam: In 2024, how many years of Social Insurance contributions are required to correspond to a monthly pension rate of 45%?
The monthly pension rate is understood as the percentage of the average monthly income covered by Social Insurance that an employee is entitled to receive on a monthly basis when they retire.
Pursuant to the provisions of Clause 2, Article 7 of Decree 115/2015/ND-CP, the monthly pension rate of employees eligible for pension is as follows:
Retired year | Monthly pension rate | Number of years of social insurance payment corresponding to the pension rate of 45% | Additional pension rate |
From January 1, 2016 until January 1, 2018 | 45% | 15 years | 2%, for male employees, or 3%, for female employees each year |
From January 1, 2018 | 45% | - Female employees: 15 years - Male employees: + 16 years if retiring in 2018; + 17 years if retiring in 2019; + 18 years if retiring in 2020; +19 years if retiring in 2021; + 20 years if retiring from 2022 onwards. | 2% for each additional year of social insurance payment. |
According to the aforementioned regulations, in 2024, when a male employee has contributed to Social Insurance for at least 20 years or a female employee has contributed for at least 15 years, the monthly pension benefit ratio for retirees is 45%.
In the case of contributing to Social Insurance for more than 20 years for males or 15 years for females, an additional 2% will be calculated for each additional year, with a maximum capped at 75%.
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