Proposal to shorten social insurance payment period to enjoy pension

The minimum number of years of social insurance payment to enjoy a pension should be reduced from 20 to 15, as proposed by the Ministry of Labour, Invalids and Social Affairs (MoLISA).

Proposal to shorten social insurance payment period to enjoy pension
The elderly take part in yoga during a festival for the elderly held in District 2, HCM City. — VNA/VNS Photo Thanh Vu

The draft proposal to develop the amended Law on Social Insurance is going to be sent to the Government by the MoLISA by June 16.

As the current social insurance policy has many shortcomings and is not consistent with the rate of population ageing, the MoLISA proposed a number of amendments, including the retirement policies.

The ministry’s drafting board proposes to amend the conditions for pension entitlement, in the direction of gradually reducing the number of years of social insurance payment from 20 years to 15, and eventually 10 years. The benefit rate will be calculated appropriately, creating conditions for elderly employees with a low number of years participating in social insurance to enjoy benefits.

The Law on Social Insurance 2014 stipulates that employees who are of full retirement age in normal working conditions and have paid 20 years or more of social insurance premiums are entitled to a pension. The monthly benefit level is equal to 45 per cent of the average monthly salary paid for social insurance and corresponds to the number of years of payment as prescribed.

Leaders of the MoLISA said this regulation was "too tight" – 20 years was too long – so many employees could not accumulate the number of years of social insurance payment to enjoy pension benefits.

Along with the economic impact, many discouraged people have left the social insurance system. In the long term, the elderly without pensions will create great pressure on society when they have to allocate resources to ensure security and healthcare. If the above rule is kept, the social insurance coverage will not change significantly.

 

On the contrary, 10 years of social insurance payment is a very important period in Vietnam. By 2030, the whole country has about 60 per cent of working-age people participating in social insurance.

According to calculations by MoLISA, if this plan changes, it will encourage people to participate in the system, increasing income sources into the short and medium-term social insurance fund, thus short, medium and long term spending will also increase. Employees will be better protected against the risks in the working process, towards old age with pensions.

The amended Law on Social Insurance is expected to be submitted to the National Assembly (NA) for consideration and comment for the first time at the December 2022 session of the 15th NA, passed at the May 2023 session and takes effect from the beginning of 2024.

By the end of last year, Vietnam had about 14.1 million people over retirement age. More than 3.1 million of them are enjoying a monthly pension and social insurance whereas 1.8 million people enjoy retirement benefits. More than 9.2 million people over retirement age have not enjoyed another layer of security.  

VNS

Should Vietnam have a lump sum pension payment policy?

Should Vietnam have a lump sum pension payment policy?

Dinh Thi Thu Hien, vice chairwoman of the Social Welfare Policy Committee, under the Ministry of Labour, War Invalids and Social Affairs, talks to Nhân Dân (People) newspaper on the need to revise the policy on lump-sum pension payments.

Elderly thrilled with pension deliveries

Elderly thrilled with pension deliveries

Nguyen Dac Tuu, 76, of Nguyen Trai Ward, Ha Dong District, Hanoi, was very happy when his pension for April and May was brought to him at home.

 
 

Other News

.
Up to 118 new COVID-19 cases recorded on June 15 morning
Up to 118 new COVID-19 cases recorded on June 15 morning
SOCIETYicon  15/06/2021 

The national tally of COVID-19 infections rose to 10,999 after 118 more locally-transmitted cases were confirmed in the past six hours to 12pm on June 15, according to the Ministry of Health (MoH).

Hanoi's relocation of universities, hospitals, industrial establishment still slow
Hanoi's relocation of universities, hospitals, industrial establishment still slow
SOCIETYicon  15/06/2021 

Relocating universities, hospitals, and polluted production facilities to reduce population pressure on the central areas of Hanoi is an important goal of the six residential planning projects in four core inner-city districts.

Health Ministry sets up standing COVID-19-prevention unit in HCM City
Health Ministry sets up standing COVID-19-prevention unit in HCM City
SOCIETYicon  15/06/2021 

The Ministry of Health has decided to establish a standing division for COVID-19 prevention and control in Ho Chi Minh City, which is headed by its Deputy Minister Nguyen Truong Son.

Vietnam confirms 71 new COVID-19 infections
Vietnam confirms 71 new COVID-19 infections
SOCIETYicon  15/06/2021 

Vietnam reported 71 more COVID-19 infections, including one imported case, in the last 12 hours to 6am on June 15, according to the Ministry of Health.

HCM City extends social distancing order for two more weeks as COVID-19 outbreaks grow
HCM City extends social distancing order for two more weeks as COVID-19 outbreaks grow
SOCIETYicon  14/06/2021 

Chairman of HCM City People's Committee Nguyen Thanh Long on Monday agreed to prolong city-wide social distancing in line with the Government's Directive No 15 until the end of June, amid developments of coronavirus outbreaks in the city.

HCM City universities adjust enrollment plans for academic year
HCM City universities adjust enrollment plans for academic year
SOCIETYicon  14/06/2021 

Many universities in HCM City have changed enrollment plans for the upcoming academic year because of the ongoing COVID-19 outbreak.

The bumpy road of a 25-year-old female teacher elected to the National Assembly
The bumpy road of a 25-year-old female teacher elected to the National Assembly
FEATUREicon  15/06/2021 

Nang Xo Vi, the first Brau ethnic minority female teacher elected to the NA, said she is grateful to the people of Dak Me hamlet, who contributed packages of seasoning powder and shampoo as well as emotional support so that Vi could go to school.

Vietnamese in Southeast Asia’s COVID epicentres stay calm and optimistic
Vietnamese in Southeast Asia’s COVID epicentres stay calm and optimistic
SOCIETYicon  14/06/2021 

Nguyen Trung Dong, a Vietnamese engineer working in Vientiane, Laos, received the first shot of Sinopharm’s COVID-19 vaccine two weeks ago.

COVID-19 vaccine fund receives over 211.3 million USD in cash donations so far
COVID-19 vaccine fund receives over 211.3 million USD in cash donations so far
SOCIETYicon  14/06/2021 

The national COVID-19 vaccine fund has received more than 4.85 trillion VND (211.35 million USD) worth of donations from 291,818 organisations and individuals as of 5pm on June 13, according to the fund's management board.

COVID-19: 92 new cases reported on June 14 morning
COVID-19: 92 new cases reported on June 14 morning
SOCIETYicon  14/06/2021 

The Ministry of Health confirmed 91 new locally-transmitted and one imported COVID-19 cases in the past 12 hours to 6am on June 14, including 73 detected in quarantined or locked down areas.

Bac Ninh eases social distancing, Quang Ninh reboots tourism
Bac Ninh eases social distancing, Quang Ninh reboots tourism
SOCIETYicon  13/06/2021 

The northern province of Bac Ninh eased social distancing measures in several areas, starting from 0am on June 13.

103 more COVID-19 cases recorded in Vietnam, daily caseload at 297
103 more COVID-19 cases recorded in Vietnam, daily caseload at 297
SOCIETYicon  13/06/2021 

Vietnam has confirmed an additional 103 locally transmitted coronavirus cases in five localities during the past six hours, raising its daily count to 297, according to the Ministry of Health (MoH).

Over 93,000 students enter 10th grade entrance exam in Hanoi
Over 93,000 students enter 10th grade entrance exam in Hanoi
SOCIETYicon  13/06/2021 

More than 93,000 students throughout Hanoi took part in the 10th grade entrance exam for the upcoming school year on June 12.

Temporary blockade imposed on HCMC Hospital for Tropical Diseases
Temporary blockade imposed on HCMC Hospital for Tropical Diseases
SOCIETYicon  13/06/2021 

The municipal Department of Health decided to impose a temporary blockade on the HCMC Hospital for Tropical Diseases in the evening of June 12 after some healthcare workers in the hospital tested positive for Covid-19.

Vietnam’s top leaders consider vaccine passport
Vietnam’s top leaders consider vaccine passport
SOCIETYicon  13/06/2021 

Vietnam vows to pursue the twin goal of containing Covid-19 and developing the economy to serve the recovery plans.

Businesses face difficulties in vaccine imports
Businesses face difficulties in vaccine imports
SOCIETYicon  13/06/2021 

The Government has created conditions for localities and businesses to stimulate the import of Covid-19 vaccines, however, no proposals have been sent to the relevant agencies.

Tropical low depression develops into storm
Tropical low depression develops into storm
SOCIETYicon  13/06/2021 

A tropical low-pressure system has developed into a storm, internationally named Koguma, becoming the second hitting the East Sea since the beginning of this year.

Most of fresh Covid-19 cases linked to industrial parks
Most of fresh Covid-19 cases linked to industrial parks
SOCIETYicon  13/06/2021 

The Ministry of Health this morning, June 13, confirmed 96 Covid-19 cases in seven localities, with 67 cases linked to previous patients in industrial parks.

VIETNAM NEWS HEADLINES JUNE 12
VIETNAM NEWS HEADLINES JUNE 12
SOCIETYicon  12/06/2021 

UNICEF welcomes Vietnam's approval of programme on child protection online

Methamphetamine use on the rise in Vietnam: UNODC
Methamphetamine use on the rise in Vietnam: UNODC
SOCIETYicon  12/06/2021 

The number of methamphetamine users in Vietnam increased by nine times from 2016 to 2020, a new report has found.

 
 
 
Leave your comment on an article

OR QUICK LOGIN