From January 1 next year, workers will be entitled to a lump-sum social insurance allowance rather than having to wait until retirement age to receive monthly pension as regulated in Article 60 of the 2014 Law on Social Insurance.
Such is provided in a Resolution on payment of lump-sum social insurance allowances for workers one year after they cease working, which was adopted on June 22 by the National Assembly at its 9th session.
Accordingly, workers may have their period of paying social insurance premiums reserved in order to receive pension when reaching the retirement age.
Workers may receive lump-sum social insurance allowances one year after quitting their jobs__Photo: laodong.com.vn
Compulsory social insurance buyers may receive lump-sum social insurance allowances one year after quitting their jobs and voluntary social insurance buyers will be entitled to such allowances one year after they stop paying voluntary social insurance premiums while their total period of payment is less than 20 years, if they so wish.
For compulsory social insurance participants, the lump-sum allowances will be calculated based on the number of years of their payment of social insurance premiums, with each year equivalent to 1.5 months’ or 2 months’ salary of the average monthly salary on which social insurance premiums are based for the years before 2014 and from 2014 onward, respectively.
Such calculation will also apply to voluntary social insurance participants.
Under the Resolution, the Government is requested to disseminate the 2014 Law on Social Insurance with a view to ensuring long-term social welfare for workers and implementing voluntary social insurance policies with state supports.
The Government should also make sure that employers and workers be provided with information on payment of social insurance premiums and receipt of social insurance allowances.-