Proposal to supplement social pension benefits in Vietnam

Proposal to supplement social pension benefits in Vietnam (Internet image)

The latest proposal to supplement regulations on social pension benefits has been included in the draft amended Law on Social Insurance by the Ministry of Labor, War Invalids, and Social Affairs of Vietnam.

1. Proposal to supplement social pension benefits in Vietnam

Specifically, draft amended Law on Social Insurance stipulating the social retirement allowance regime applicable to Vietnamese citizens aged 60 years or older and full retirement age in accordance with the provisions of the Labor Code 2019 when the following conditions are met:

- Being 80 years old or older;

- No pension or other monthly social insurance allowance.

Thus, the proposed social pension scheme is as follows:

- Monthly social retirement allowance:

The subjects specified in Article 26 of the draft amended Law on Social Insurance are entitled to a subsidy equal to 500,000/month

- Health Insurance:

Persons receiving monthly social security pension benefits are entitled to a health insurance card allowance according to regulations.

- Funeral allowance:

+ If the person receiving the commune pension dies, the person taking care of the funeral will receive a lump-sum funeral allowance.

+ The funeral allowance is equal to VND 10,000,000 on the basis of the increase in the consumer price index and economic growth in line with the state budget.

2. Benefits for employees who are ineligible for pensions and underage for social pension benefits in Vietnam

Benefits for employees who are ineligible for pension and underage for social pension benefits according to the draft amended Law on Social Insurance of the Ministry of Labor - Invalids and Social Affairs proposed to supplement:

Those who are ineligible for pension and not yet eligible for benefits under regulations but have time to pay social insurance premiums, if they wish, will be entitled to a monthly allowance in the previous period when they reach the age of social pension benefits.

The period of enjoyment and the monthly allowance depend on the total payment period and the month of payment of the employee's social insurance premiums.

In case the monthly allowance is equal to the social retirement allowance for the period from reaching full retirement age to reaching the age to enjoy social retirement benefits, but the total amount for calculation of the payment period has not yet been exhausted, based on the employee's month of payment of social insurance premiums, the employee will be entitled to a higher monthly allowance.

In case an employee who is receiving a monthly salary allowance dies, his/her relatives will be entitled to a lump-sum allowance for the unclaimed months and a funeral allowance if the conditions specified in this draft amended Law on Social Insurance are supplemented.

During the monthly allowance period, employees are entitled to health insurance guaranteed by the state budget and regulated by the government.

3. Procedures for the implementation of the regime for employees who are not eligible for pension benefits and are not yet old enough to enjoy social pension benefits in Vietnam

The order and procedures for implementing the regime for employees who are ineligible for pension and underage for social pension allowance according to the draft amended Law on Social Insurance are proposed as follows:

- Subjects specified to apply to people aged 80 years or older, who do not have pensions and other monthly social insurance benefits, send their dossiers to the social insurance agency, including:

+ Social insurance book;

+ Application form for benefits.

- Within 05 working days from the day on which the complete application is received, the social insurance agency is responsible for processing and paying the employee; if not resolved, reply in writing and clearly state the reason.

  Vo Van Hieu

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