Many poor people have chosen to withdraw their social insurance at one time.
On the afternoon of November 2, the National Assembly discussed in groups the draft revised Law on Social Insurance. Speaking at the Hai Phong group, National Assembly Chairman Vuong Dinh Hue said that the policy related to one-time withdrawal of social insurance is of great interest to workers.
From the documents of the International Labor Organization (ILO), the National Assembly Chairman pointed out that most countries do not allow one-time withdrawal of social insurance. In Vietnam, in reality, many workers facing immediate difficulties have chosen to withdraw their social insurance at one time.
National Assembly Chairman Vuong Dinh Hue (Photo: Pham Thang).
Regarding the options for one-time withdrawal of social insurance as stated in the draft law, the National Assembly Chairman said that many opinions believe that employees should not be prohibited from withdrawing insurance.
However, it is necessary to design policies in the direction of retaining social insurance participants in the system, limiting the withdrawal of the regime. Obviously, if having the right to withdraw insurance, when facing immediate difficulties, workers will consider withdrawing all the regime.
The National Assembly Chairman also expressed his opinion that there should be no distinction between when insurance can be withdrawn or not when the law comes into effect ( according to the Government's proposal, people participating in social insurance from July 1, 2025 will no longer be allowed to withdraw insurance - PV ).
The National Assembly Chairman is concerned that if regulations are not developed properly regarding the one-time withdrawal of social insurance, it will affect the thoughts and aspirations of workers, leading to an increase in the withdrawal of insurance.
Which facility stipulates that one-time insurance withdrawal is only 50% of the policy?
Minister of Finance Ho Duc Phoc said that according to option 2, the drafting committee proposed that employees would only receive 50% of the benefits when withdrawing social insurance at one time, and 50% would be retained. He wondered what was the basis for allowing such a 50% withdrawal?
Minister of Finance Ho Duc Phoc (Photo: Gia Han).
The explanation of the drafting agency is that the employer's contribution (14%), although still belonging to the employee, must be left so that when the employee returns to pay social insurance, the insurance participation time will be reserved to receive a pension.
The draft revised Law on Social Insurance provides two options for one-time withdrawal of social insurance.
Option 1 provides for one-time social insurance benefits for two different groups of employees.
Group 1 is employees who participated in social insurance before the revised Social Insurance Law takes effect (expected July 1, 2025), after 12 months of unemployment and less than 20 years of social insurance contributions and have a need, they will receive a one-time social insurance payment.
Group 2, for employees who started participating in social insurance since the amended Law on Social Insurance took effect, are not entitled to receive one-time social insurance. One-time social insurance benefits are only granted in the following cases: reaching retirement age but not having enough years of contributions to receive pension; moving abroad to settle down or suffering from one of the life-threatening diseases as prescribed by current regulations.
The Minister of Finance proposed to retain the 14% contributed by enterprises to the pension fund, the remaining amount contributed by enterprises and employees (including 8% contributed by employees, 3% contributed by employers to the sickness and maternity fund and 0.5% to the occupational accident and disease insurance fund) can be withdrawn. If so, employees will be able to withdraw at a rate equivalent to nearly 46%, while 54% will be retained.
"Thus, employees can receive sick leave, maternity leave, accident and occupational disease benefits. The pension that the enterprise pays must be left. In my opinion, if social insurance can be withdrawn at one time, it should only be withdrawn at that rate of 46%," said Mr. Phoc.
In addition, the Minister of Finance also asked, how long after the employee stops participating in social insurance can the remaining benefits be withdrawn?
Regarding the investment portfolio of the Social Insurance Fund, Minister of Finance Ho Duc Phoc informed that the Fund is currently invested in two areas.
80% of investment in government bonds, which are guaranteed, is used to support the budget and build fiscal policies. This investment is safe but has low interest rates.
The Minister of Finance said that there were times when bond interest rates reached 8-10%, but there were periods when they dropped to 4.7%, or even only 2.26%, as during the Covid-19 pandemic.
The remaining 20% of the Fund is deposited in commercial banks, but the state only allows deposits in 4 major banks to ensure safety.
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