Do employees who born in 1968 have paid 32 years of social insurance receive a pension in Vietnam? Can I pay social insurance based on salary of labor contract if I stop working due to the epidemic in Vietnam?

Can I pay social insurance based on salary of labor contract if I stop working due to the epidemic in Vietnam?

I want to ask if I am quarantined and have to stop working. During that time, enterprises pay wages according to the regional minimum salary for the days off work, the days of working and pay wages according to the labor contract, what salary is the salary for social insurance payment based on? If an employee stops working for a full month, at what salary does the employer pay social insurance? Can enterprises and employees still pay social insurance premiums on the salary of the labor contract but not the salary during the time off work?

Answer: According to Clause 3, Article 99 of the Labor Code 2019 stipulating that in case of a suspension of work, the employee shall receive a suspension pay as follows:

3. In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:

a) If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;

b) If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.

The information you mentioned is that you have to stop working due to the impact of the Covid-19 epidemic, the company will have to ensure the principle that the first 14 days are not lower than the regional minimum wage; from the 15th onwards will be agreed by both parties (maybe higher, lower).

And in Clause 8, Article 42 of Decision 595/QD-BHXH 2017 stipulates as follows:

8. If an employee who stops working in accordance with regulations of law on labor still receives salary, he/she or his/her employer shall pay insurance contributions and premiums according the monthly salary received by the employee during the stopping period.

Thus, if the company allows the employee to take leave from work and receive a salary for stopping work, the company still has to pay social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance. Social insurance contributions will be calculated according to the salary received during the time off work in Vietnam.

In addition, according to current regulations in Vietnam, when an employee stops working, he/she will pay according to the salary that the employee is entitled to during the period of cessation of work; there is no provision in the case of agreement on the level of payment. Therefore, in our opinion, enterprises and employees are not entitled to pay based on the salary according to the labor contract. However, you can contact the social insurance agency for detailed instructions.

Can commune cadres in list of reduced payrolls who have paid social insurance contributions for more than 15 years enjoy retirement benefits in Vietnam?

May I ask, I am 50 years old this year, under the reduction of payroll according to Decree 108, I am a part-time cadre at commune level, have worked for more than 15 years, can I enjoy retirement? In this 15 years, I have fully participated in social insurance. Thank you.

Answer: According to Clause 2, Article 1 of Decree 143/2020/ND-CP, the policy on early retirement is as follows:

+ Persons downsizing the payroll specified in Article 6 of this Decree, if their age is maximum 5 years old and at least 2 years lower than the retirement age specified in Clause 2, Article 169 of the Labor Code, and have paid social insurance premiums for full 20 years or more, are entitled to the retirement regime as prescribed by the law on social insurance and the regime specified at Points a and c, Clause 2, of this Article, the salary for each year of retirement age specified in Clause 2 of this Article; 169 Labor Code.

Clause 2, Article 169 of the Labor Code 2019 stipulates the retirement age as follows:

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.

According to the information provided in Vietnam, you are 50 years old this year, you are subject to downsizing and have been working for more than 15 years. So in this case, because you have only participated in social insurance for more than 15 years, you have not had enough time to pay insurance to enjoy the retirement benefits.

Do employees who born in 1968 have paid 32 years of social insurance receive a pension in Vietnam?

I am a male worker, born in 1968, I have been paying social insurance contributions for 32 years continuously. So, according to the current labor law in Vietnam, am I eligible for pension or not?

Answer: According to Clause 2, Article 169 of the Labor Code 2019 stipulates the retirement age as follows:

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.

In addition, Article 54 of the Law on Social Insurance 2014 as amended by Point a, Clause 1, Article 219 of the Labor Code 2019 provides:

1. An employee mentioned in Points a, b, c, d, g, h and i Clause 1 Article 2 of this Law, except for the cases specified in Clause 3 of this, will receive retirement pension if he/she has paid social insurance for at least 20 years and:

a) He/she has reached the retirement age specified in Clause 2 Article 169 of the Labor Code;

b) He/she has reached the retirement age specified in Clause 3 Article 169 of the Labor Code and has at least 15 years’ doing the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs; or has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region factor of at least 0,7 before January 01, 2021;

c) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 10 years and he/she has worked in coal mines for at least 15 years; or

d) He/she contracted HIV due to an occupation accident during performance of his/her assigned duty.

Thus, for employees working in normal conditions, the conditions to enjoy pension are to reach retirement age and pay social insurance premiums for full 20 years or more. But now, although you have paid social insurance contributions for 32 years, you are only 53 years old, not old enough to retire. So not eligible for pension in Vietnam.

Best regards!