(Dan Tri) - The 2024 Social Insurance Law adds important provisions to calculate pensions for Vietnamese workers working abroad under contracts and participating in social insurance abroad.
According to Mr. Pham Truong Giang, Director of the Social Insurance Department, Ministry of Labor, War Invalids and Social Affairs, one of the major changes of the Social Insurance Law 2024 is to increase the opportunity to receive pensions for Vietnamese workers participating in social insurance abroad and foreign workers participating in social insurance in Vietnam.
Specifically, the 2024 Social Insurance Law has added provisions on calculating pensions corresponding to each year of social insurance contributions to serve as a basis for recording the cumulative time of social insurance participation in both Vietnam and abroad for employees. From there, employees working abroad will have more opportunities to receive pensions.
Workers working abroad have their social insurance participation time combined to calculate their pension (Illustration: Gia Doan).
The current Social Insurance Law (Social Insurance Law 2014) and the Social Insurance Law 2024 both stipulate that employees working abroad under contracts are subjects of compulsory social insurance (except in cases where international treaties to which the Socialist Republic of Vietnam is a member have other provisions).
Meanwhile, when workers go abroad to work, they must comply with the laws of the host country and can participate in social insurance in the country where they are working.
In Korea, the country's National Pension Act stipulates that foreigners aged 18-60 who live and work in businesses in Korea can participate in the National Pension Program like native Koreans.
Therefore, Vietnamese workers coming to Korea to work under contract must participate in social insurance in both Vietnam and Korea.
To help workers avoid double social insurance contributions in both countries, on December 14, 2021, in Seoul (South Korea), Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung and Minister of Health and Social Welfare of Korea Kwon Deok-cheol signed a bilateral agreement on social insurance.
When the above Agreement is implemented, Vietnamese workers going to Korea to work only have to pay social insurance in one country, and their social insurance payment process will be recognized by both countries.
Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung and Minister of Health and Social Welfare of Korea Kwon Deok-cheol signed the bilateral agreement on social insurance (Photo: Ministry of Labor, Invalids and Social Affairs).
In order to have a legal basis for calculating pensions for employees who are subject to social insurance contributions in both countries as above, the Social Insurance Law 2024 adds provisions on calculating the cumulative time of social insurance participation in both Vietnam and abroad for employees in Clause 4, Article 66.
Accordingly, the calculation of monthly pension for employees who are eligible for pension and have paid social insurance according to the provisions of international treaties to which the Socialist Republic of Vietnam is a member but have paid social insurance in Vietnam for less than 15 years, each year of payment during this period is calculated at 2.25% of the average salary used as the basis for paying social insurance.
Article 8 of the 2024 Law on Social Insurance also stipulates international cooperation on social insurance in the direction of promoting negotiations and signing of international treaties and international agreements on social insurance to ensure the rights of Vietnamese workers working abroad and foreign workers coming to work in Vietnam.
According to Mr. Pham Truong Giang, Director of the Social Insurance Department, the Government is very interested in ensuring the rights of workers working abroad, not only in terms of salary but also their retirement benefits.
Source: https://dantri.com.vn/an-sinh/cach-tinh-luong-huu-cua-nguoi-viet-nam-khi-ra-nuoc-ngoai-lam-viec-20241127161447323.htm
Comment (0)