While working under a labor contract, employees are responsible for mandatory social insurance contributions according to regulations. So, how is the responsibility for social insurance contributions of the employee carried out after terminating employment?
Article table of contents
How does the employee contribute to social insurance after resignation in Vietnam? (Illustrative image)
As known, after resignation, employees will benefit from unemployment insurance policies from the social insurance they have participated in during their working period. At the same time, during this period, the participation in social insurance of the employee is as follows:
1. Discontinuation of social insurance contributions in Vietnam
According to Article 61 Law on Social Insurance 2014, employees who resign but do not qualify for a pension or have not received a lump-sum social insurance payment can retain their social insurance contribution period.
Thus, during the period after resignation when the employee has not found new employment, the employee will temporarily discontinue social insurance contributions and carry out procedures to retain the social insurance contribution period.
The procedures to retain the social insurance contribution period are as follows:
- The dossier to request the retention of social insurance contribution period includes:
- 01 Application form (Form D01B-TS);
- 02 Lists of employees participating in social insurance, health insurance (Form D02-TS);
- A copy of the decision to terminate the labor contract, employment contract, reassignment, resignation to receive policies, or an expired labor contract, employment contract;
- Social insurance book;
- Valid health insurance card (except in the case of death).
- The employee submits one set of the above-mentioned dossier to the social insurance agency.
2. Voluntarily social insurance payment in Vietnam
According to Clause 3, Article 3 of the Law on Social Insurance 2014, voluntary social insurance is a type of social insurance organized by the State where participants can choose the contribution level, payment method suitable to their income, and the State has policies to support social insurance contributions for participants to benefit from pension and survivor benefits.
After resignation, the employee can participate in voluntary social insurance to meet the conditions for pension and survivor benefits.
Eligible Participants for Social Insurance:
Clause 4, Article 2 of the Law on Social Insurance 2014 stipulates that participants in voluntary social insurance are Vietnamese citizens aged 15 years or older.
Voluntary Social Insurance Contribution Levels:
According to Article 87 of the Law on Social Insurance 2014, the voluntary social insurance contribution levels are regulated as follows:
Equal to 22% of the income level chosen by the participant to contribute to the pension and survivor’s fund. The minimum monthly income as the basis for voluntary social insurance contributions is equivalent to the rural poverty line and the maximum is 20 times the statutory pay rate. Specifically:
- Rural poverty line: 700,000 VND/person/month according to Point a, Clause 1, Article 1 of Decision 59/2015/QD-TTg;
- Statutory pay rate up to now: 1.49 million VND/month according to Decree 38/2019/ND-CP of the Government of Vietnam.
Thus, after resignation, besides retaining the social insurance contribution period, employees can choose the method of voluntary social insurance contributions. If the voluntary social insurance contributions meet the required duration and conditions, employees can receive a pension and survivor benefits according to the law.
Thuy Tram
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