How to prevent the 'wave' of one-time social insurance withdrawal?

One-time social insurance withdrawal is mainly for workers.

The Ministry of Labor, Invalids and Social Affairs said that before 2019, an average of 500,000 people withdrew their insurance each year. However, by 2023, this number will increase to 900,000 people. The number of people leaving social insurance is almost equal to the number of new participants.

The above reality is considered by the Ministry of Labor, Invalids and Social Affairs to be a risk to the social security system when in the future, many elderly people will not have pensions.

The majority of one-time social insurance withdrawals fall on workers, on the contrary, civil servants and public employees are very few.

Mr. Nguyen Van Quang (44 years old) from Thanh Hoa, has been a worker at an electrical manufacturing company in Tu Son Industrial Park (Bac Ninh) for nearly 12 years. His wife, who works at the same company, is also 40 years old and has worked for nearly 18 years.

According to Mr. Quang, most people over 40 years old, especially women, cannot continue working at the company, especially when they are old, their health is declining, and they have to work overtime and work many shifts, which is very tiring. Many people who cannot meet the company's requirements have had to quit their jobs and withdraw their social insurance at once.

Mr. Quang shared that everyone wants to have a salary when they retire, but his wife started working as a factory worker at the age of 22, and by the age of 40 she had paid social insurance for 18 years. Therefore, if she quits her job now, she will be unemployed and have to wait nearly 20 years to be eligible for a pension.

He explained that being unemployed and having to wait a long time to be eligible for a pension is very difficult, because life is full of worries, so he can only rely on a one-time withdrawal of social insurance.

Ms. Nguyen Thi Linh (32 years old), an electronic accessories assembly worker for a Korean company in Bac Ninh, shared that her company has very few women working until the age of 40.

Although she has been a worker for nearly 10 years, she has determined that when she is old and forced to quit her job and cannot find a new job, she will choose to withdraw her social insurance at once to have capital to do business.

Ms. Linh said that workers can only work for 20 years at most, and when they lose their job, they cannot find a new one and have to wait another 15-20 years to reach retirement age, which is too long. Meanwhile, if they retire early, 2% of their pension will be deducted each year, so the benefit is very low, not enough to live on.

Therefore, to maintain social security, it is best to reduce the retirement age so that non-state workers, female workers aged 50 and male workers aged 55, receive a maximum pension of 75%. The regulation of female workers aged 58 and male workers aged 62 should only be reserved for state offices.

Create jobs and stable income to prevent one-time withdrawal of social insurance

Former Deputy Minister of Labor, Invalids and Social Affairs Pham Minh Huan said that with the plan to keep the current regulations, the number of people withdrawing social insurance at one time will still increase, the coverage rate of social insurance will increase very slowly, when two people enter the social insurance system, one person will withdraw. This reality will make the safety net very thin.

According to Mr. Huan, when workers face difficulties in life, many people do not know where to turn, so they only look at the social insurance payment and rush to withdraw it all at once.

Therefore, the immediate solution is to create jobs and stable income for workers. In the long term, the State policy must aim to encourage workers to continue to conveniently pay voluntary social insurance when they are not working, to have enough time to receive pension.

social insurance one time tt.jpg — Most people who withdraw social insurance at one time work as workers in factories and enterprises.

In particular, the authorities need to calculate to have a credit policy to support workers who fall into difficult circumstances to borrow at low interest rates. From there, it helps them to cover their temporary living expenses and not think about withdrawing their social insurance at once.

The representative of the Vietnam General Confederation of Labor said that the social insurance policy should aim to reduce the social insurance payment period to 15 years or even lower to receive pension. When reducing the payment period, the pension level must at least ensure a minimum standard of living.

Therefore, when amending the Social Insurance Law, it is necessary to adjust in the direction of sharing pension benefits, adjusting in the direction that low-wage earners have a higher adjustment rate so that pensions must at least ensure a minimum standard of living.

Choose the one-time withdrawal option with many advantages

Regarding the regulation on one-time social insurance benefits that the drafting agency is proposing to include in the revised Social Insurance Law, speaking at the National Assembly on November 23, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung said that the plan to regulate one-time social insurance withdrawal should aim at two basic goals. The first is to meet the legitimate needs of social insurance participants who have the right to withdraw social insurance.

The second is to strive to retain workers in the system, ensure social security and care, so that people have pensions and ensure their lives when they retire.

Mr. Dung said that the drafting agency will follow the direction of designing policies with more advantages.

The plans will continue to be adjusted in the direction that employees have the right to withdraw social insurance at one time, regardless of whether they paid insurance before or after the law took effect.

In response to the opinions of some delegates that only allowing employees to withdraw 8% of social insurance contributions, or suggesting retaining 14% of employer contributions, the Minister mentioned option 2, in which employees can only withdraw 50% and retain the remaining 50%.

The Minister of Labor, Invalids and Social Affairs explained that 50% of the reserved social insurance payment period will be recorded in the social insurance book so that employees can continue to enjoy benefits.

When returning to participate in social insurance, the employee will have their contribution period added to. If they do not re-participate in social insurance, the employee will receive a monthly allowance when they reach retirement age.

This plan ensures the right of participants to receive one-time social insurance benefits, and is fair between participants before and after the law takes effect.

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