Rates of assistance with social insurance premiums for voluntary social insurance participants in Vietnam

Rates of assistance with social insurance premiums for voluntary social insurance participants in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1.Rates of assistance with social insurance premiums for voluntary social insurance participants in Vietnam

Specifically, in Clause 1, Article 14 of Decree 134/2015/ND-CP, a voluntary social insurance participant receives the State’s assistance with premiums in percentage (%) of monthly social insurance premiums based on the poverty line in rural areas as prescribed in Clause 1, Article 10 of this Decree, to be specific:

- 30%, for a voluntary social insurance participant who is in a poor household;

- 25%, for a voluntary social insurance participant who is in a near-poor household;

- 10%, for other persons.

Agencies, organizations and individuals are encouraged to provide assistance with social insurance premiums for voluntary social insurance participants.

Based on socio-economic development conditions and State budget capacity in each period, the Government shall consider adjusting the assistance rates for voluntary social insurance participants as appropriate.

2. Methods of assistance with social insurance premiums for voluntary social insurance participants in Vietnam

Pursuant to Clause 3, Article 14 of Decree 134/2015/ND-CP stipulating the mode of social insurance support

- A voluntary social insurance participant eligible for the assistance shall pay social insurance premiums within his/her payment responsibility to a social insurance agency or voluntary social insurance premium collection agent designated by a social insurance agency;

- Every 3, 6 or 12 months, the social insurance agency shall make a list of those eligible for the assistance, premiums collected from these persons and the sum provided by the State budget according to the form issued by the Vietnam Social Security after reaching agreement with the Ministry of Finance, and submit the list to a finance authority for transferring the expenses to the social insurance fund;

- Based on the regulations on local budget management decentralization, the list of voluntary social insurance participants and the expenses provided by the State budget and transferred by social insurance agencies, the finance authority shall transfer such expense to the social insurance fund every quarter.

By December 31 of a year, the finance authority shall complete the transfer of expenses to the social insurance fund of that year.

3. voluntary social insurance premium in Vietnam

According to Article 10 of Decree 134/2015/ND-CP, the voluntary social insurance premiums described in Clause 1, Article 87 of the Law on Social Insurance and according to the payment methods described in Clause 1, Article 9 of Decree 134/2015/ND-CP are specified 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.

- 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 Article 10 of Decree 134/2015/ND-CP or to his/her relative in the case prescribed in Point c of this Clause 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).

Ho Quoc Tuan

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