Procedures for change of premium payment method and monthly income on which voluntary social insurance premiums are based in Vietnam

Procedures for change of premium payment method and monthly income on which voluntary social insurance premiums are based in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows: 

1. Procedures for change of premium payment method and monthly income on which voluntary social insurance premiums are based in Vietnam

Procedures for change of premium payment method and monthly income on which voluntary social insurance premiums are based in Vietnam according to Article 13 of Decree 134/2015/ND-CP are as follows:

- Application for change of payment method and monthly income on which voluntary social insurance premiums are based includes:

+ The social insurance book;

+ The declaration form for social insurance participation.

- Processing of applications for change of payment method and monthly income on which voluntary social insurance premiums are based.

+ The voluntary social insurance participant shall submit an application described in Clause 1 of Article 13 of Decree 134/2015/ND-CP to a social insurance agency;

+ Within the day, the social insurance agency shall decide whether to grant the application, if the application is satisfactory, or reject it and provide explanation.

2. Voluntary social insurance premiums under the law in Vietnam

Voluntary social insurance premiums according to Article 10 of Decree 134/2015/ND-CP are prescribed as follows:

- The monthly premium equals 22% of the monthly income decided by the voluntary social insurance participant.

The monthly income decided by a voluntary social insurance participant must at least equal the poverty line in rural areas as prescribed by the Prime Minister and must not exceed 20 times the statutory pay rate at the time of payment.

- The premium for every 3, 6 or 12 months equals the monthly premium set forth in Clause 1 of Article 10 of Decree 134/2015/ND-CP multiplied by 3, 6, 12 respectively.

3. The lump-sum premiums for multiple subsequent years set forth in Point dd, Clause 1, Article 9 of Decree 134/2015/ND-CP equal the monthly premium multiplied by total number of months of these years and apply a discount at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

- The lump-sum premiums for the remaining years set forth in Point e, Clause 1, Article 9 of Decree 134/2015/ND-CP equals the total monthly premiums of the remaining period plus an interest at the social insurance fund’s average monthly investment interest rate announced by the Vietnam Social Security in the year preceding the year of payment.

- In case a voluntary social insurance participant applies any of the payment methods as prescribed in Clause 2 and Clause 3 of Article 10 of Decree 134/2015/ND-CP and during that period the Prime Minister adjusts the poverty line in rural areas, payment of the difference is not required.

- In case a voluntary social insurance participant applies any of the payment methods prescribed in Points b, c, d, and dd, Clause 1, Article 9 of Article 10 of Decree 134/2015/ND-CP, he/she shall have part of the paid premiums refunded if during that period he/she:

+ switches over from voluntary social insurance to compulsory social insurance;

+ receives lump-sum social insurance payout as prescribed in Article 7 of Decree 134/2015/ND-CP;

+ dies or is declared dead by the court.

The amount to be refunded to the voluntary social insurance participant in the case prescribed in Point a and Point b of Clause 6 of Article 10 of Decree 134/2015/ND-CP or to his/her relative in the case prescribed in Point c of Clause 6 of Article 10 of Decree 134/2015/ND-CP equals the paid premium amount corresponding to the remaining period of payment according to the abovementioned method and excludes the assistance provided by the State (if any).

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