6 methods of social insurance contribution to receive a pension in 2019

Illustrative photo

As stipulated in Clause 1 Article 9 of Decree 134/2015/ND-CP, participants in voluntary social insurance can choose one of the following 06 payment methods to contribute to the retirement and survivorship fund:

1. Monthly contributions

The monthly contribution is 22% of the monthly income chosen by the participant in voluntary social insurance.

Note: The monthly income chosen by the participant must be at least equal to the rural poverty line and at most 20 times the statutory pay rate at the time of contribution.

2. Quarterly contributions (every 3 months)

The contribution amount is determined by multiplying the monthly contribution by 03.

3. Biannual contributions (every 6 months)

The contribution amount is determined by multiplying the monthly contribution by 06.

4. Annual contributions (every 12 months)

The contribution amount is determined by multiplying the monthly contribution by 12.

5. Lump-sum contributions for multiple future years, but not exceeding 5 years at a time

The contribution amount is calculated based on the total monthly contributions of the months contributed in advance, discounted according to the average monthly social insurance fund investment interest rate announced by Vietnam Social Security for the year preceding the contribution year.

6. Lump-sum contributions for missing years for participants who have met the age requirements for pension but are missing no more than 10 years (120 months) of social insurance contributions are allowed to contribute enough to reach 20 years and receive a pension.

The contribution amount is calculated based on the total monthly contributions of the missing months, applying compound interest at the average monthly social insurance fund investment interest rate announced by Vietnam Social Security for the year preceding the contribution year.

Note: In case voluntary social insurance participants have paid in 03-month, 06-month, 12-month installments, or in lump sums for multiple future years, and during that time they fall into one of the following cases, they will be refunded a part of the previously paid amount:

- Stop participating in voluntary social insurance and switch to mandatory social insurance;- Receive a one-time social insurance payout;- Die or be declared dead by the court.

The refund amount for the voluntary social insurance participant or their relative is calculated based on the remaining period in comparison to the period contributed under the chosen payment method, excluding any state contribution support (if any).

- Nguyen Trinh -

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