Proposal to expand the scope of pension benefits

Employees who have paid social insurance for less than 15 years, if not withdrawn at once, can receive monthly benefits as soon as they reach retirement age.

The Government has just submitted to the National Assembly a draft revised Law on Social Insurance, proposing the above content.

Accordingly, if an employee reaches retirement age but has not paid social insurance for 15 years to receive a pension and is not yet old enough to receive social benefits (75 years old), he/she can choose to receive a monthly benefit from the amount of social insurance they have paid.

The monthly subsidy level of this group depends on the payment period, salary, and monthly income for social insurance payment. During the period of receiving monthly subsidy, these people are also covered by health insurance paid by the budget.

For example, if a worker pays social insurance for 5 years and does not withdraw it at once, he or she can receive a monthly pension upon retirement at a minimum level equal to the proposed social pension allowance of VND500,000/month.

The draft law also proposes to reduce the age of receiving social benefits from 80 to 75 years old.

Hanoians exercise by West Lake, Hanoi. Photo: Dinh Tung

Thus, if the above policies are approved by the National Assembly, it is expected that 1.1 million more people will receive social benefits, including 800,000 people due to lowering the age and 300,000 people due to linking the social pension level with compulsory social insurance.

The above proposal aims to institutionalize the Party's policy of gradually reducing the age of receiving social pension benefits in accordance with the budget's revenue capacity. Expanding the scope of pension benefits also aims to build a multi-layered social insurance system, increasing policy flexibility.

The Government assessed that this proposal would increase the number of beneficiaries of monthly benefits without incurring much additional budget costs because pension benefits are paid by the Social Insurance.

The draft revised Law on Social Insurance is expected to be submitted to the National Assembly at the October session.

Nationwide, there are about 5 million retired elderly people receiving pensions, social insurance benefits, and monthly social benefits. Of these, 2.7 million people receive pensions; 640,000 people receive monthly social insurance benefits. About 9.6 million people over 60 years old do not receive any pensions, and this number is expected to increase to 13 million by 2030.

A survey by the United Nations Population Fund Program shows that the majority of income for the elderly in Vietnam comes from support from their children, up to 38%; 29% from continuing to work, only 15% receive pensions and 10% receive social benefits.

Viet Tuan

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