Circular 01/2016/TT-BLDTBXH stipulates in detail and provides guidance on the implementation of certain Articles of the Law on Social Insurance (SI) concerning voluntary social insurance, specifically mentioning the subjects participating in voluntary social insurance.
Article table of contents
According to Article 2 Circular 01/2016/TT-BLDTBXH, subjects participating in voluntary social insurance (VSI) are Vietnamese citizens aged 15 and above and not falling under the compulsory social insurance (CSI) subjects as prescribed by the law on social insurance. To be specific:
- Employees working under a labor contract (HDLD) with a term of less than three months before January 1, 2018; employees working under a labor contract with a term of less than one month from January 1, 2018 onwards;- Non-specialist workers in hamlets, villages, communes, towns, neighborhoods;- Domestic workers;- Individuals participating in production, business, and service activities without wages;- Cooperative members not receiving wages or salaries working in cooperatives, cooperative alliances;- Farmers, self-employed individuals including those who self-organize labor activities to earn income for themselves and their families;- Employees who have met the age requirement but not the contribution period requirement to receive a pension as specified by law on social insurance;- Other participants.
Similar to compulsory social insurance, subjects participating in voluntary social insurance are also entitled to some policies on retirement and survivor benefits.
Retirement Regime
The monthly pension and the pension entitlement rate are implemented according to the provisions of Article 3 Decree 134/2015/ND-CP. When calculating the monthly pension entitlement rate, if the social insurance contribution period has lapsed from 01 month to 6 months, it is calculated as half a year; from 7 months to 11 months, it is calculated as one year.
For example: Mr. A receives a pension from October 2016, the social insurance contribution period is 28 years and 3 months, the monthly average income for social insurance contributions is 5,000,000 VND/month. Mr. A’s monthly pension is calculated as follows:
- Mr. A’s monthly pension entitlement rate:
+ Mr. A’s social insurance contribution period is 28 years and 3 months; the 3 lapsed months are calculated as half a year, so the number of years of social insurance contributions for pension calculation is 28.5 years.
+ The first 15 years are calculated at 45%;
+ From the 16th year to the 28.5th year is 13.5 years, calculated as: 13.5 x 2% = 27%;
Mr. A’s monthly pension entitlement rate is: 45% + 27% = 72%.
Therefore: Mr. A’s monthly pension amount is:
72% x 5,000,000 VND/month = 3,600,000 VND/month
For participants in voluntary social insurance who previously had periods of compulsory social insurance contributions, the pension calculation period includes the total period of compulsory and voluntary social insurance contributions, excluding the period for which a one-time social insurance benefit has been received.
Participants in voluntary social insurance are entitled to a one-time social insurance benefit as stipulated in Clause 1, Article 77 of the Law on Social Insurance, Clause 1, Article 1 of Resolution 93/2015/QH13, and Article 7 of Decree 134/2015/ND-CP.
Survivor Benefit Regime
For the relatives of participants in voluntary social insurance who died and previously had periods of compulsory social insurance contributions, the survivor benefit calculation period includes the total period of compulsory and voluntary social insurance contributions, excluding the period for which a one-time social insurance benefit has been received.
During the funeral, the person in charge of the funeral is entitled to a funeral grant equivalent to 10 times the statutory pay rate for the deceased person or the person declared dead by the court in one of the following cases:
- The participant in voluntary social insurance has a compulsory social insurance contribution period of 12 months or more;- The participant in voluntary social insurance has a period of social insurance contributions for survivor benefits of 60 months or more;- The participant in voluntary social insurance is receiving monthly labor accident or occupational disease benefits after having ceased working;- The person is receiving a pension.
If a participant in voluntary social insurance dies or is declared dead by the court in one of the following cases, their relatives are entitled to a monthly survivor benefit as stipulated in Article 68 of the Law on Social Insurance:
- The participant has had at least 15 years of compulsory social insurance contributions but has not received a one-time social insurance benefit;- The participant is receiving monthly labor accident or occupational disease benefits with a minimum 61% labor reduction capacity;- The participant is receiving a pension and previously had at least 15 years of compulsory social insurance contributions.
For cases where the deceased individual's relatives are not eligible for a monthly survivor benefit or wish to receive a one-time survivor benefit as stipulated in Clause 4, Article 8 of Decree 134/2015/ND-CP, they are entitled to a one-time survivor benefit.
View detailed voluntary social insurance policies at Circular 01/2016/TT-BLDTBXH.
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