Paying social insurance for 15 years shows a 'future', 10 years gives more conditions to pay

Accordingly, in the program of the 6th Session of the 15th National Assembly , on the afternoon of November 2, National Assembly deputies (NA deputies) discussed in groups the draft Law on Social Insurance (amended).

15 year social insurance contract instead of 10 year future contract, there are more conditions to form 1 — Discussion scene on the draft Law on Social Insurance (amended).

Unifying the name "social insurance policy reform"

Speaking, Politburo member and National Assembly Chairman Vuong Dinh Hue said that at the 7th Conference of the Party Central Committee (12th tenure), two important Resolutions were discussed and issued: Resolution No. 27-NQ/TW on reforming salary policies for cadres, civil servants, public employees, armed forces and employees in enterprises and Resolution No. 28-NQ/TW on reforming social insurance policies.

Regarding the salary reform roadmap, the National Assembly Chairman said that the Salary Reform Steering Committee was expected to start in 2021. However, after that, our country was strongly affected by the COVID-19 pandemic, so it submitted to the Central Government for permission to postpone the implementation date. Now, the Central Government has concluded that salary reform will be implemented from July 1, 2024.

Regarding insurance policy reform, the National Assembly Chairman said that some contents have been institutionalized, such as the retirement age in the Labor Code. Other contents are being implemented more slowly than salary reform. However, if the 7th session passes the Social Insurance Law project, it can also be applied at the same time as salary reform (July 1, 2024).

Regarding the name, the Politburo agreed to submit to the Central Committee the name of the social insurance policy reform, not a renewal or amendment. "This is a very fundamental change, forming a multi-layered insurance regime (retirement, compulsory social insurance, voluntary social insurance), moving towards universal social insurance coverage," said the National Assembly Chairman.

15-year social insurance contract instead of 10-year future contract, there are more conditions to form 2 — National Assembly Chairman Vuong Dinh Hue.

Moving towards reducing social insurance payment period to 10 years

Notably, regarding the social insurance payment period, according to National Assembly Chairman Vuong Dinh Hue, the payment and benefit period will be reduced from 20 years to 15 years and then to 10 years. "This is the current world trend because salaries are increasing, the contribution rate "for the cake" is getting bigger. That is, the number of years of payment is getting less but the payment is more. Not only that, the regional minimum wage for workers is almost always increased by about 6-8% every year. In the future, salary reform will also reform both the public and private sectors," said the National Assembly Chairman.

The National Assembly Chairman pointed out that one of the most important factors to reduce the one-time withdrawal of social insurance is to reduce the insurance payment period and do a good job of communication. "People think that paying for 20 years is too far away, but 15 years still has a future, moving towards 10 years will create more conditions to pay," the National Assembly Chairman said, adding that there will be many other revolutionary changes.

Regarding the one-time withdrawal of social insurance, National Assembly Chairman Vuong Dinh Hue emphasized that this is the issue that workers are most concerned about. The policy of reducing the payment period from 20 years to 15 years also has some impact.

"When working with the International Labor Organization (ILO), countries do not allow one-time withdrawal of social insurance. However, the safety net of those countries is guaranteed, and people's income is high. For our country, it will be different, but many opinions say that it should not be banned. We can only design policies to keep workers in the system and reduce them," said the National Assembly Chairman, adding that many people have immediate difficulties. Statistics show how many people withdraw to ensure their daily living needs, how many people withdraw to pay off debts... At the same time, we should not distinguish between before the law takes effect or after it takes effect.

15-year social insurance contract instead of 10-year future contract, there are more conditions to form 3 — National Assembly delegates speak at the discussion.

The age of retirement benefits is getting lower and lower.

Regarding social pension benefits, National Assembly Chairman Vuong Dinh Hue said that its nature is a subsidy similar to that for the elderly from the state budget. In principle, the age of eligibility is decreasing. It will decrease until reaching retirement age. However, the benefit levels will increase, depending on the state budget.

"Currently, the age of entitlement is 80, this law will reduce it to 75 years old. I agree with the delegates on how to gradually reduce the age and the level of entitlement, there should be flexibility," said the National Assembly Chairman and suggested that this Law should be assigned to the National Assembly Standing Committee to consider and decide in each period according to the Government's proposal and based on the state budget's capacity.

Along with that, the National Assembly Chairman suggested that the law should be designed with regulations and implementation milestones because the two most important issues are age and benefit level, so it should be flexible so that the law does not have to be amended later. And it is also necessary to clearly stipulate that this expenditure is paid by the state budget.

Source