Prohibited acts in Vietnam under the Law on Social Insurance 2024

Prohibited acts in Vietnam under the Law on Social Insurance 2024 (Image from internet)

1. Prohibited Acts in Vietnam under the Law on Social Insurance 2024

- Delaying or evading the payment of mandatory social insurance and unemployment insurance.

- Misappropriation of funds entitled to social insurance and unemployment insurance.

- Obstructing, causing difficulties, or damaging the legitimate rights and interests of participants and beneficiaries of social insurance and unemployment insurance.

- Fraud and forgery of documents in the implementation of social insurance and unemployment insurance.

- Unlawful use of the social insurance fund and unemployment insurance fund.

- Illegally accessing, exploiting, and providing databases on social insurance and unemployment insurance.

- Providing false registration and reporting; offering inaccurate information about social insurance and unemployment insurance.

- Colluding, connecting, covering up, or assisting agencies, organizations, or individuals in violations of the social insurance and unemployment insurance laws.

- Pledging, buying, selling, mortgaging, or depositing social insurance books in any form.

- Other acts as prescribed by law.

(Article 9 Law on Social Insurance 2024)

2. Principles of Social Insurance in Vietnam under the Law on Social Insurance 2024

- The level of mandatory and voluntary social insurance benefits is calculated based on the contribution levels and the duration of the social insurance contributions; with sharing among social insurance participants as prescribed by Law on Social Insurance 2024.

- The level of mandatory social insurance contributions is calculated based on the salary serving as the basis for mandatory social insurance contributions. The level of voluntary social insurance contributions is calculated based on the income acting as the basis for voluntary social insurance contributions chosen by the participants.

- Individuals with both periods of mandatory and voluntary social insurance contributions are entitled to monthly allowance policies, pension, and survivor policies based on the durations of mandatory and voluntary social insurance contributions.

The time period of social insurance contributions already considered for one-time social insurance benefits cannot be included in the time serving as the basis for calculating social insurance benefits.

- The social insurance fund is managed centrally, uniformly, publicly, transparently; used for the right purposes and accounted independently according to subfunds and groups of subjects implementing policies determined by the State and those decided by the employer.

- The implementation of social insurance must be simple, easy, convenient, ensuring promptly and fully the rights of participants and beneficiaries of social insurance benefits.

- The minimum period of social insurance contributions to determine eligibility for a pension and monthly survivor benefits is calculated on a yearly basis. Each year must be counted as full 12 months. For the benefit calculation, the duration of social insurance contributions in odd months from 01 month to 06 months is considered as half a year, and from 07 months to 11 months as a full year.

- The resolution of social insurance benefits is determined according to the law governing social insurance at the time of benefit entitlement.

(Article 5 Law on Social Insurance 2024)

3. State policies on social insurance in Vietnam under the Law on Social Insurance 2024

- Build a multi-tier social insurance system including social pension allowances, mandatory social insurance, voluntary social insurance, and supplementary pension insurance to cover the entire population according to a roadmap consistent with socio-economic development conditions.

- Ensure the legitimate rights and interests of organizations and individuals participating in social insurance; provide credit support policies for workers with periods of social insurance contributions who lose their jobs.

- The state budget ensures the policies of social pension allowances and certain other policies as specified in this Law.

- Protect, preserve, and grow the social insurance fund.

- Support participants in voluntary social insurance.

- Encourage localities, depending on socio-economic conditions and the ability to balance the budget, to mobilize additional social resources to support social insurance contributions for voluntary social insurance participants and offer additional support for recipients of social pension allowances.

- Improve legislation and policies on social insurance; develop a professional, modern, transparent, and efficient social insurance organizational system; prioritize investment in IT infrastructure to meet digital transformation requirements, electronic transactions, and social insurance management demands.

- Encourage participation in supplementary pension insurance.

(Article 6 Law on Social Insurance 2024)

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