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Official Gazette

Friday, March 24, 2023

Social insurance-covered workers can choose when to enjoy lump-sum insurance allowance

Updated: 09:00’ - 12/07/2021
>>Draft amended Law on Social Insurance gives more benefits to participants

Employees may either request to be entitled to lump-sum social insurance allowance just after having ceased working for one year and stopping payment of social insurance premiums or wait until they reach the retirement age. For each option, they would receive different allowance levels.

Such is one of proposals of the Ministry of Labor, Invalids and Social Affairs (MOLISA) in the latest draft revised Law on Social Insurance to be tabled to the Government in July.

Under the draft, if requesting to enjoy lump-sum social insurance allowance after one year off from work without paying social insurance premiums, an employee would receive the allowance level for each year of social insurance premium payment equal to one average monthly salary on which his social insurance premium is based.

Meanwhile, the allowance level would be twice as average monthly salary if the employee requests to receive lump-sum social insurance allowance when he reaches the retirement age but remains ineligible for monthly pension or suffers a serious illness or lawfully resides abroad.

Also to prevent participants from prematurely receiving lump-sum social insurance allowance, the MOLISA proposes pilot implementation of the regime of parenthood allowance for employees that participate in compulsory social insurance. Accordingly, if having an under-six child, a social insurance participant would be entitled to a monthly parenthood allowance until the child is full six years old. If wishing to enjoy such allowance, participants would have to pay an additional social insurance premium equal to one percent of average monthly salary on which their social insurance premiums are based.  

In addition, in order to help workers from all walks of life to get access social insurance regimes, the State would provide a support equal to 30 percent of monthly voluntary social insurance premium payment for all participants. Particularly, in addition to retirement and survivorship regimes as currently, the MOLISA proposes maternity regime for female employees participating in voluntary social insurance. Accordingly, after giving birth, female participants would receive VND 2 million (USD 87.2) for each new-born child.- (VLLF)

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