Who are the participants of voluntary social insurance in Vietnam?

Who are the participants of voluntary social insurance in Vietnam? (Internet image)

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

1. Who are the participants of voluntary social insurance in Vietnam?

Participants of voluntary social insurance in Vietnam according to Article 8 of Decision 595/QD-BHXH in 2017 include:

- Participants in voluntary social insurance shall be at least 15 years old and not subject to compulsory social insurance as prescribed in regulations of law on social insurance, including:

+ Employees working under contracts whose term is under 3 months (before January 01, 2018) and employees working under contracts whose term is under 1 month (from January 01, 2018 onwards);

+ Part-time officials of villages, hamlets, squires, street groups, quarters;

+ Domestic servants;

+ Employees engaged in activities of production, business and service without salary;

+ Employees working for cooperatives without salary;

+ Farmers and self-employed people include people organize activities themselves to earn income for themselves and their families;

+ Employees who have reached the statutory retirement age but fail to satisfy condition for payment period to receive pensions as prescribed by regulations of law on social insurance;

+ Other participants.

- Authorities, organizations and individuals related to voluntary social insurance.

2. Payment methods of voluntary social insurance in Vietnam

Payment methods of voluntary social insurance according to Article 9 of Decision 595/QD-BHXH in 2017 (amended in Decision 505/QD-BHXH in 2020) are as follows:

- A participant in voluntary social insurance shall choose one of the following methods for making a payment to the retirement and death benefit funds:

+ Monthly payment

+ Quarterly payment

+ Biannual payment

+ Annual payment

+ Lump sum payment for multiple years but not exceeding 5 year per payment;

+ Making one-off payment of contributions for years left to full entitlement to insurance benefits. With regard to SI participants who are age-appropriate for entitlement to the old-age pension, if their contribution period left to full entitlement to insurance benefits is not more than 10 years (120 months), they may pay additional insurance contributions to complete the required 20-year cycle for entitlement to old-age pensions.

In case of participating in the compulsory SI scheme, they can make one-off payment of voluntary SI contributions for years left to full entitlement to insurance benefits in the due month when they reach the age of eligibility for entitlement to retirement pensions.

+ If a participant in social insurance who has reached the statutory retirement age law but still lacks over 10 years of his/her payment period wishes to continue participating in voluntary social insurance in one of the methods prescribed in Points 1.1, 1.2, 1.3, 1.4 and 1.5 Clause 1 of Article 9 of Decision 595/QD-BHXH until the payment period of social insurance lacks under 10 years, he/she will make a lump sum payment for remaining years to receive his/her pensions as prescribed in Point 1.6 Clause 1 of Article 9 of Decision 595/QD-BHXH in 2017 (amended in Decision 505/QD-BHXH in 2020).

Example 2: Mr. B is 60 years old in August 2016 and his payment period of social insurance is 8 years. Mr. B wishes to continue participating in voluntary social insurance to be eligible for receiving monthly pensions and wishes to pay insurance contributions and premiums once per 2 years from September, 2016 to August, 2018.

In September 2018, his payment period of social insurance is 10 years and he wishes to make a lump sum payment for remaining 10 years. Therefore, until the end of September, 2018, his payment period is 20 years and he is eligible for receiving pensions as prescribed by law. Mr. B shall receive his pensions from October, 2018

+ Change of payment methods of voluntary social insurance

+ Participants in voluntary social insurance are allowed to change payment methods when completing the previously chosen method.

+ If a participant in voluntary special insurance who has chosen one of the methods prescribed in Clause 1 of Article 9 of Decision 595/QD-BHXH in 2017 (amended in Decision 505/QD-BHXH in 2020) is eligible for making a lump sum payment for the remaining years (a man shall be 60 years old and a woman shall be 55 years old and the remaining period is 10 years or less), he/she will be allowed to make a lump sum payment as soon as eligible and the chosen method is not required to be completed.

Example 3: Mr. C has participated in voluntary social insurance since August, 2016 and registers the quarterly payment with the social insurance authority. Subsequently, he wishes to make a biannual payment. The method of payment is changed from November 2016.

However, in January 2017, Mr. C is 60 years old and his payment period of social insurance is 10 years so he is allowed to make a lump sum payment for remaining years in January 2017 to receive his pensions.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE