Recently, at the national conference to disseminate and implement the Trade Union Law and the Social Insurance Law 2024 organized by the Vietnam General Confederation of Labor, Mr. Pham Truong Giang, Director of the Social Insurance Department (Ministry of Labor, Invalids and Social Affairs) said that in addition to expanding pension benefits for domestic workers, the Social Insurance Law 2024 also increases pension opportunities for Vietnamese workers paying social insurance abroad and foreign workers required to participate in insurance in Vietnam.

According to statistics, currently there are about 50,000 Vietnamese workers working in Korea who will have the opportunity to receive pensions in the near future, after Vietnam and Korea signed a bilateral agreement on social insurance recognizing the time of contribution in the two countries.

In the draft Circular guiding the implementation of a number of articles of the Law on Social Insurance on compulsory social insurance, the Ministry of Labor, Invalids and Social Affairs proposed a plan to calculate pensions for employees who have participated in social insurance abroad.

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Employees working abroad who pay social insurance will have their time counted towards their pension benefits when Vietnam signs a bilateral agreement on social insurance recognizing their payment time in the two countries. Illustration photo: Bao Quyen

According to the draft, the monthly pension of employees who are eligible for pension, have participated in social insurance according to international treaties of which Vietnam is a member, but have paid social insurance in Vietnam for less than 15 years, will be calculated according to the provisions of Clause 4, Article 66 of the Law on Social Insurance.

Specifically, each year of payment during this period will be calculated at 2.25% of the average salary used as the basis for social insurance payment.

Vietnam Social Security is managing and paying monthly pensions and social insurance benefits to more than 3.3 million people.

6 cases of one-time withdrawal of social insurance

Regarding one-time social insurance, Mr. Giang said that the number of people who have withdrawn social insurance at one time with a payment period of 15 years or more is 109,000 people. Therefore, the Social Insurance Law 2024 adjusts the minimum insurance payment period to receive pension to 15 years instead of 20 years, which will increase the opportunity to receive pension benefits.

The 2024 Social Insurance Law supplements regulations in the direction of increasing benefits and encouraging employees to stay in the system. Accordingly, employees who terminate their labor contracts in one of the 6 cases will receive a one-time social insurance payment.

Specifically, people participating in social insurance before July 1, 2025 (about 18 million people) after 12 months of not participating in compulsory and voluntary social insurance, the social insurance payment period is less than 20 years, if requested, can still withdraw social insurance one time.

Those who participate in social insurance from July 1, 2025 are still entitled to withdraw social insurance at one time but in the following cases: people who are old enough to receive pension but have not paid social insurance for 15 years; people who settle abroad; people who are suffering from one of the following diseases: cancer, paralysis, decompensated cirrhosis, severe tuberculosis, AIDS; people with a reduced working capacity of 81% or more and people with extremely severe disabilities; people in the armed forces when demobilized, discharged, or quit their jobs are not subject to compulsory social insurance but also do not participate in voluntary social insurance and are not eligible for pension.

Compared to before, the new Social Insurance Law has added a group of people who can withdraw their social insurance benefits at one time, including people with a reduced working capacity of 81% or more and people with extremely severe disabilities.

In case the employee is eligible to withdraw social insurance at one time but reserves it to receive pension, he/she will receive monthly allowance before age 75, during which time he/she will enjoy health insurance paid by the state budget; in addition, he/she will have access to other policies such as preferential credit...

In case of reaching retirement age but the social insurance payment period is not enough 15 years to receive pension and also not eligible for social pension, if not receiving one-time social insurance payment, not retaining but requesting, will receive monthly allowance from own contribution.