Matters to Know About Voluntary Social Insurance in 2018

Subjects Participating in Voluntary Social Insurance

According to Clause 1, Article 2 of Circular 01/2016/TT-BLDTBXH, the subjects participating in voluntary social insurance include:

- Employees working under labor contracts with a term of less than 03 months before January 1, 2018; employees working under labor contracts with a term of less than 01 month from January 1, 2018 onwards;- Non-professional activists in hamlets, villages, groups, wards, and communities;- Household assistants;- Participants in unpaid production, business, and service activities;- Non-salaried cooperative members working in cooperatives or cooperative alliances;- Farmers, self-employed workers including those who self-organize labor activities to generate income for themselves and their families;- Employees who have reached the age requirement but do not meet the required contribution period to receive pension according to the law on social insurance;- Other participants.

Regarding Contribution Rates for Voluntary Social Insurance

The monthly contribution rate is 22% of the monthly income chosen by the participant in voluntary social insurance. The minimum monthly income chosen by the voluntary social insurance participant must be equal to the rural poverty line stipulated by the Prime Minister of Vietnam and the maximum is 20 times the statutory pay rate at the time of contribution according to Circular 01/2016/TT-BLDTBXH.

The monthly contribution rate is calculated as follows: M_dt = 22% x (CN + m x 50,000 VND). Where:

- M_dt is the monthly voluntary social insurance contribution rate;- CN is the rural poverty line;- m is a natural parameter ranging from 0 to n.

These contents are based on Article 9 of Circular 01/2016/TT-BLDTBXH.

Contribution Methods for Voluntary Social Insurance

According to Clause 1, Article 9 of Decree 134/2015/ND-CP, the voluntary social insurance contributions can be made through various methods such as monthly, quarterly, or once every 6 months.

Contribution timings:

- Within the first 15 days of the month (for monthly contributions);- Within the first 45 days of the quarter (for quarterly contributions);- Within the first 3 months (for contributions made once every 6 months).

Participants must directly pay their contributions to the district social insurance agency where they reside (permanent or temporary residence).

Benefits of Participating in Voluntary Social Insurance

Voluntary social insurance payers are entitled to benefits similar to those participating in compulsory social insurance such as:

- Receiving a pension upon contributing for at least 20 years and reaching the retirement age;- Receiving a lump-sum social insurance policy if not eligible for retirement pension or opting for early withdrawal;- Relatives receiving death benefits if the contributor passes away.

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