Therefore, it is necessary to create conditions for them to retire early at the above age when they have paid Social Insurance for 15 years or more.
What are the conditions for pension?
Eight business and industry associations have just sent documents to the National Assembly, the Government and relevant agencies to comment on a number of provisions in the Draft Law on Social Insurance (SI), which is being consulted.
Commenting on the conditions for receiving pensions, the above business associations proposed to supplement the provisions in Article 106 of the Draft Law on Social Insurance amended in the direction that employees can retire early according to their wishes, for women from 55 years old, men from 60 years old, when they have participated in social insurance for at least 15 years; the pension level will be based on the social insurance contribution rate, but for each year of retirement before the prescribed age, 2% of the pension rate will be deducted.
The associations explain that in reality, the majority of Vietnamese workers do manual work, many of whom participate in social insurance early, have a long period of social insurance payment, and a high contribution rate. When women reach 55 years old and men reach 60 years old, their health declines, making it difficult to meet job requirements, and the risk of unemployment is high.
If employees have to wait until retirement age (60 for women and 662 for men), they will have difficulty ensuring their livelihood. In addition, allowing employees to choose early retirement also creates job opportunities for young people. Employees who choose early retirement will have their pension deducted by 2% for each year they retire early.
Eight business associations jointly proposed allowing employees to retire early, from 55 years old for women and 60 years old for men.
According to the Draft Law on Social Insurance Amendment, the retirement age conditions are based on the increase roadmap of the 2019 Labor Code. Specifically, the retirement age for women will increase from 55 to 60 years old (4 months added each year until 2035), and for men it will increase from 60 to 62 years old (3 months added each year until 2028).
Some experts believe that if the above conditions for early retirement are included in the law, employees who want to retire early will have to undergo less health assessment procedures and will be applied to all employees instead of early retirement only being applied to arduous, toxic, and dangerous fields...
Proposal to reduce social insurance contribution rate
Regarding the social insurance contribution rate, the above associations believe that the pension and death fund contribution rate is still maintained as current regulations, which is too high compared to other countries in the region (total 25% of salary, of which employees contribute 8%, employers contribute 17% of monthly salary). Meanwhile, the contribution rate to this fund of other countries in the region is lower, such as Malaysia is 13% of salary, Philippines 10%, Indonesia 8%, Thailand 5%, Myanmar 2%...
Regarding the method of calculating salary as the basis for social insurance contributions, the Draft Law on Social Insurance proposes two options. Option 1, keeping current regulations (salary for social insurance contributions includes monthly salary, salary allowances, and other additional amounts that can be determined at a specific amount). Option 2, salary for social insurance contributions includes salary and salary allowances, and other additional amounts as prescribed (except for bonuses and other support outside of work).
The above associations believe that if choosing salary as the basis for calculating social insurance contributions according to option 1, it will reduce the pressure on employees and businesses, but it will lose the consistency of the policy; there will be inequality between businesses; the gap between income and contribution basis as well as the pension of employees in the future will be large.
With option 2, basically the contribution is based on the actual salary the employee receives, but with a high contribution rate, it will put pressure on the business, and the employee's income may be reduced.
From the above analysis, the associations propose to adjust both options and reduce the social insurance contribution rate. The first option is to reduce the social insurance contribution rate for employees from 8% to 5% of salary, the employer's contribution rate is reduced from 17% to 15% of salary (total contribution is 20% of salary). Salary is the basis for contribution according to salary, allowances and other supplements as prescribed in current regulations, equivalent to 70% of the actual income of employees.
Or reduce the social insurance contribution rate to 16% of the salary (employees pay 4%, employers pay 12% of the salary), but the salary basis for the contribution is the actual income (excluding some non-salary items). This option will pay social insurance based on the salary equivalent to about 90% of the employee's actual income.
Along with reducing the social insurance contribution rate, the associations also proposed to study reducing the maximum pension rate from the current 75% (and draft law) to the same level as many countries in the world. Although the pension rate is reduced, the salary base for the contribution is high, so the actual pension received by employees will be higher.
The associations that made the above suggestions include: Vietnam Timber and Forest Products Association (VFA), Vietnam Leather, Footwear and Handbag Association (LEFASO), Vietnam Food Association (AFT), Vietnam Plastics Association, Vietnam Textile and Apparel Association (VITAS), Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam Electronics Enterprises Association (VEIA), Ho Chi Minh City Handicraft and Wood Industry Association.
Regarding the one-time social insurance regime, the associations recommend choosing option 2 in the Draft Law on Social Insurance Amendment: After 12 months of not taking leave from work without paying social insurance, the social insurance payment period is less than 20 years, one-time social insurance is received. The maximum one-time social insurance benefit is not more than 50% of the time of payment to the pension and death fund.
The remaining time of social insurance payment is reserved for employees to enjoy social insurance benefits when they reach retirement age. However, the associations propose an adjustment: employees are entitled to one-time social insurance payment according to their wishes, and the remaining time is reserved with the benefit level clearly stated at the time of one-time social insurance payment.
(Source: tienphong.vn)
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