Who are the subjects participating in voluntary social insurance?
Some subjects who can participate in voluntary social insurance are:
- Employees working under labor contracts for less than 01 months.
- Non-specialist activities in villages, hamlets, villages, squirrels, villages, residential groups, neighborhoods, neighborhoods.
- Domestic worker.
- Participants in production, business and service activities are not entitled to a salary.
- Members do not receive salary and wages to work in cooperatives and cooperative unions.
- Farmers and workers create their jobs.
- Employees who are eligible for age but are not eligible for payment time to receive a pension.- Other participants meet the eligibility requirements.
Voluntary social insurance premiums
According to Article 87, the Law on Social Insurance 2014 details the voluntary social insurance premiums for employees as follows:
Employees specified in Clause 4, Article 2 of this Law, a monthly payment equal to 22% of the monthly income level chosen by employees to pay into the pension and death fund; the monthly income level as the basis for social insurance payment is the lowest equal to the standard of poor households in rural areas and the highest is 20 times the base salary.
Participants can choose one of the following closing methods:
1. Monthly.
2. Every 03 months.
3. Once every 06 months.
4. Every 12 months.
5. Pay once for many years later with a lower level than the monthly payment or once for the missing years with a higher than the monthly payment than prescribed.
The participant's monthly voluntary social insurance premium is calculated according to the formula:
The level of payment = 22% x The level of income that chooses to pay voluntary social insurance - The level of state support for payment
In which: The income level chosen to pay social insurance will be chosen by the employee himself but must ensure:
- Lowest = The standard level of poor households in rural areas according to Clause 1, Article 3 of Decree 07/2021/ND-CP = 1.5 million VND (in 2023).
- Highest = 20 x Base salary.
The level of state support for voluntary social insurance payment is calculated as a percentage (%) above the monthly social insurance premium level according to the standard level of poor households in rural areas for a maximum period of 10 years:
|
Subject
|
The lowest monthly close
The State has not supported
|
Percent (%)
State support
|
Support amount in 2023
State monthly support
|
Lowest close
monthly after the State supports
|
|---|---|---|---|---|
|
People belonging to poor households
|
330,000 VND
|
30%
|
99,000 VND
|
231,000 VND
|
|
People from near-poor households
|
330,000 VND
|
25%
|
82,500 VND
|
247,500 VND
|
|
People who belong to other subjects
|
330,000 VND
|
10%
|
33,000 VND
|
297,000 VND
|
For example: If you are not in a poor or near-poor household and choose a voluntary social insurance income level of 5 million VND/month. Every month, you will have to pay the following amount:
Monthly payment = 22% x 5 million VND - 33,000 VND = 1,067,000 VND. Thus, it can be seen that employees are free to choose the voluntary social insurance premiums for themselves and have support from the State to create the best conditions so that workers with difficult circumstances can also participate in paying social insurance, aiming at the goal of social security for the whole people at a higher level.
Voluntary social insurance benefits
Pursuant to Chapter IV, the Law on Vietnam Social Insurance 2014 details the level of voluntary social insurance benefits, specifically as follows:
Retirement benefits
How many years do participants pay social insurance premiums to receive a pension? According to regulations, the monthly pension is equal to 45% of the average monthly income for social insurance contributions and corresponds to the number of years of social insurance contributions, in which:
- Men's laborers who retire in 2018 are counted as 16 years, in 2019 as 17 years, in 2020 as 18 years, in 2021 as 19 years and from 2022 onwards as 20 years.
- Female laborers retiring from 2018 onwards is 15 years to 2023 is enough 20 years.
Then every year, the pension rate is calculated by 2%, the maximum is 75%.
Thus, participants in social insurance with full payment of 20 years or more will be entitled to the retirement regime and regardless of whether the participant pays in the form of compulsory or voluntary payment.
Therefore, in case individuals participating in compulsory social insurance have not paid for 20 years and have reached the retirement age, they can continue to pay insurance in a voluntary form for up to 20 years to receive a pension according to regulations.
Benefits and benefits received from the pension include:
Monthly pension
According to Article 3 of Decree 134/2015/ND-CP, the monthly pension is calculated according to the formula:
Monthly pension = Benefit rate x Average monthly income for social insurance contributions
Receive a one-time allowance upon retirement
Pursuant to Clause 2, Article 74 of the Law on Social Insurance 2014. Each year, participants in voluntary social insurance pay higher than the corresponding year, the 75% pension rate is calculated as 0.5 months of average monthly income for social insurance contributions.
Withdraw social insurance 1 time
The one-time social insurance benefit is calculated according to the number of years of social insurance premiums, each year is calculated as follows:
a) 1.5 months of average monthly income for social insurance premiums for the years before 2014;
b) 02 months of average monthly income for social insurance contributions for the years of payment from 2014 onwards;
c) In case the social insurance payment period is less than 01 year, the social insurance benefit is equal to the amount paid, the maximum is equal to 02 months, and the average monthly income of social insurance contributions.
The level of enjoyment of death
Benefits and allowances received from the death regime include:
Burial allowance
Equal to 10 times the base salary for people who have a period of social insurance payment for a full 60 months or more or are receiving a pension.
Subsidy
For relatives of people who are paying or are reserving the closing period, each year:
- 1.5 months of average monthly income for social insurance contributions (paid before 2014);
- 02 months of average monthly income for social insurance payment (paid from 2014 onwards);
- Up to 02 months of average monthly income for social insurance premiums if the payment has not been paid for 01 year;
- At least 03 months of average salary and monthly income for social insurance contributions if participating in both compulsory and voluntary social insurance.
For relatives of pensioners:
- 48 months of pension if you die in the first 2 months of pension;
- For every additional month of pension, the allowance will be reduced by 0.5 months if you die in the following months.
Is voluntary social insurance payment eligible for maternity benefits?
Participants are not entitled to maternity benefits when paying voluntary social insurance premiums. The reason is that voluntary social insurance has only two regimes, retirement, death, and there is no maternity regime.
To enjoy maternity benefits, you must participate in compulsory social insurance and meet the following conditions:
- You are an employee working under a labor contract for 1 month or more, or an officer, civil servant, public employee, business manager, or cooperative executive manager with a salary.
- You have paid social insurance for 6 months or more for 12 consecutive or intermittent months before maternity leave.
- You take maternity leave in accordance with labor law.
