What is current voluntary social insurance payment rate in Vietnam? After working, can I continue to pay voluntary social insurance in Vietnam?

After working, can I continue to pay voluntary social insurance in Vietnam?

After resigning, I participated in voluntary social insurance. But now I have returned to work at a new company. So, in my case, can I continue to participate in voluntary social insurance without participating in compulsory social insurance?

Reply:

According to Clause 4, Article 2 of the 2014 Law on Social Insurance, it is stipulated as follows:

4. Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.

It can be seen that you have right to participate in voluntary social insurance when you are not subject to compulsory insurance.

In addition, in Clause 1, Article 2 of the 2014 Law on Social Insurance, there are regulations on employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

a/ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;

c/ Cadres, civil servants and public employees;

d/ Defense workers, public security workers and persons doing other jobs in cipher organizations;

dd/ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

e/ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

g/ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

h/ Salaried managers of enterprises and cooperatives;

i/ Part-time staffs in communes, wards and townships.

According to this Article, if you belong to one of the above groups, you will not be able to participate in voluntary social insurance but must participate in compulsory social insurance in Vietnam.

What is current voluntary social insurance payment rate in Vietnam? After working, can I continue to pay voluntary social insurance in Vietnam? (Image from the Internet)

Can a person over 50 years old pay voluntary social insurance in Vietnam?

I am 50 years old and have not participated in social insurance yet. Now I want to participate in social insurance so that I can enjoy a pension when I get old?

Reply:

According to Clause 4, Article 2 of the 2014 Law on Social Insurance, it is stipulated:

4. Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.

Thus, if you are not subject to paying social insurance, you can participate in voluntary social insurance even though you are 50 years old in Vietnam.

According to the 2019 Labor Code, effective from January 1, 2021, the retirement age has been raised, specifically as follows:

1. An employee who has paid social insurance for an adequate period of time as prescribed by social insurance laws shall receive retirement pension when he/she reaches the retirement age.

2. Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

3. The retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

4. Retirement ages of skilled employees and employees in certain special cases may be older by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

5. The Government shall elaborate this Article.

Based on the above information, you can think and make appropriate choices in Vietnam.

What is current voluntary social insurance payment rate in Vietnam?

I want to buy voluntary social insurance, please help me clarify: What is current voluntary social insurance payment rate in Vietnam?

Reply:

According to the provisions of Clause 1, Article 87 of the 2014 Law on Social Insurance:

1. Employees defined in Clause 4, Article 2 of this Law shall monthly pay an amount equivalent to 22% of their monthly incomes as selected to the retirement and survivorship allowance fund; the monthly income on which social insurance premiums are based must at least equal the poverty threshold in rural areas and must not exceed 20 times the statutory pay rate.

The socio-economic development conditions and state budget capacity in each period shall be based on to determine the levels of support for payment of social insurance premiums for employees covered by voluntary social insurance, support beneficiaries, and the time for implementing the support policy.

And in Decree 07/2021/ND-CP, from January 1, 2022, the poverty line for rural households is 1,500,000 VND/person/month.

Current base salary is: 1,490,000 VND/month.

The lowest voluntary social insurance payment rate from January 1, 2022 is 330,000 VND/month (22% x 1,500,000 VND), note that the State's payment rate is not considered for voluntary social insurance participants. 

In addition, the maximum voluntary social insurance payment is 29,800,000 VND/month.

Regarding payment method in Vietnam, voluntary social insurance participants can choose one of the following payment methods to pay into the retirement and survivorship fund:

- Pay monthly;

- Pay every 3 months;

- Pay every 6 months;

- Pay every 12 months;

- Lump-sum payment for many years to come but not more than once every 5 years;

- A lump-sum payment for the remaining years for social insurance participants who have met the age requirements to receive pension according to regulations but the the remaining social insurance payment period is not more than 10 years (120 months), then you can pay for the full 20 years to enjoy your pension.

Best regards!