People aged 75 and over without a pension will receive retirement benefits.

The draft Law on Social Insurance (amended) proposes to stipulate that Vietnamese citizens aged 75 and over who do not have a pension or other monthly social insurance benefits will receive social retirement benefits guaranteed by the state budget.

This is the Government's proposal in the draft Law on Social Insurance (amended). The monthly social pension allowance level is regulated by the Government in accordance with the socio-economic development conditions and the state budget capacity of each period.

The State encourages localities, depending on their socio-economic conditions and ability to balance the budget, to mobilize social resources to provide additional support for social pension beneficiaries.

People receive their pensions through the postal system.

The draft Law on Social Insurance (amended) also assigns the Government to report to the National Assembly to decide on gradually reducing the age of receiving social pension benefits in accordance with the capacity of the state budget in each period.

According to the Government, reducing the age for receiving social pension benefits from 80 to 75 will help expand the beneficiaries, adding about 800,000 elderly people to receive social pension benefits and health insurance.

For employees who reach retirement age and have paid social insurance (including compulsory and voluntary) but are not eligible for pension (less than 15 years of payment) and are not yet old enough to receive social pension benefits (not yet 75 years old), they can choose to receive monthly benefits paid by the Social Insurance Fund for the period before reaching the age of receiving social pension benefits. The monthly benefit level depends on the contribution period, salary, and monthly income of the employee for social insurance. At the same time, the period of receiving monthly benefits is entitled to health insurance guaranteed by the state budget.

The Government believes that this regulation will help increase the number of beneficiaries of monthly benefits without increasing the state budget significantly. At the same time, the Basic Social Insurance Fund will not be affected because the monthly benefits are implemented on the principle of contribution - benefit, calculated from the contributions of employees and employers to the Social Insurance Fund.

According to calculations, employees have a social insurance payment period of 5 years with the current average monthly salary for compulsory social insurance payment. If employees do not receive a one-time social insurance payment but choose to receive monthly benefits, they can receive at least the social pension benefit right from retirement age instead of having to wait until age 75.

The draft Law on Social Insurance (amended) also inherits the current regulations on implementation: Social pension benefits guaranteed by the state budget will continue to be implemented by localities along with other policies for the elderly. Monthly pension benefits guaranteed by the Social Insurance Fund will be implemented by the social insurance agency.

Expected to add 3 million more people to participate in compulsory social insurance
The draft Law on Social Insurance (amended) also adds 5 groups participating in compulsory social insurance, including: Business owners (with business registration); business managers, controllers, representatives of state capital, representatives of enterprise capital at companies and parent companies, managers and operators of cooperatives who do not receive salaries; part-time workers (flexible workers); part-time workers in villages and residential groups similar to part-time workers at the commune level; in cases where there is no labor contract or an agreement with a different name but the content shows the paid work, salary and management, operation and supervision of one party in accordance with the 2019 Labor Code. It is expected that the total number of people who will be expanded and have the opportunity to participate will be about 3 million.

STRONG

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