Tens of thousands of workers protest in HCM City to demand for one-time payment after losing jobs in April 2015
Minister Chuyen proposed revising the law to allow workers who have stopped working for one year and are not paying enough social insurance to receive a one-time insurance benefit. These workers are also allowed to continue keeping their insurance payment in reserve as outlined in the 2006 Social Insurance Law.
By HK | May 22, 2015
Vietnam’s top legislative body National Assembly (NA) on May 21 had a discussion on the controversial changes in Article 60 of the 2014 Law on Social Insurance, with the majority of agreeing that Vietnamese workers should have more options in social insurance payment, including a lump-sum pension benefit if they prefer to.
Reporting to the NA, Minister of Labor, War Invalids and Social Affairs Pham Thi Hai Chuyen said that the one-time social insurance payment is suitable with the demand of many low-income workers who would be in serious need of money to cover their daily expenses if they lose or quit their jobs.
These workers are mostly from the rural areas and often don’t have any long-term commitment to their employers nor a saving plan for their future retirement, she noted.
Currently Article 60 regulates that workers are not allowed to receive a big one-time payment when leaving a job; instead they would be paid a monthly allowance at retirement age. Workers are thus required to contribute to the social insurance fund for 20 years to be eligible to a retirement pay when they reach the retirement age. If 20 years are not accumulated they will still receive the lump sum, but only after having reached the retirement age.
At the meeting, Ms. Chuyen proposed revising the law to allow workers who have stopped working for one year and are not paying enough social insurance to receive a one-time insurance benefit. These workers are also allowed to continue keeping their insurance payment in reserve as outlined in the 2006 Social Insurance Law.
The Vietnam Social Insurance Fund now serves nearly 65 million health insurance and 12 million social insurance cardholders, out of Vietnam’s 54-million people workforce.
According to the Ministry of Labor, War Invalids and Social Affairs, between 2007 and 2014, 80% of people in the group eligible for a lump-sum payment, which mean they have not contributed to the fund for more than 15 years, decided to take the one-time benefit and only 20% decided to continue paying until their retirement age (for men 60, for women 55).
On average each year about 500,000 people got their lump-sum pension; this number rose to 605,783 in 2014 from 129,100 in 2007, the ministry added.
Lawmakers suggest the ministry raise the requirements to receive a one-time insurance payment in the near future so as to reduce the number of people having no pension or welfare when they retire.
The NA estimated the state budget allocated over VND3 trillion ($137.55 million) to supporting 1.5 million elders above 80-years-old without pensions in 2014.
The current NA sitting is slated to end on June 26.
Height Insoles: Hi, I do believe this is an excellent site. I stumbledupon …
http://fishinglovers.net: Appreciate you sharing, great post.Thanks Again. Keep writi…
Achilles Pain causes: Every weekend i used to pay a quick visit this site, as i w…
May 22, 2015
Vietnam Lawmakers toward Revising Law on Social Insurance
by Nhan Quyen • [Human Rights]
Tens of thousands of workers protest in HCM City to demand for one-time payment after losing jobs in April 2015
By HK | May 22, 2015
Vietnam’s top legislative body National Assembly (NA) on May 21 had a discussion on the controversial changes in Article 60 of the 2014 Law on Social Insurance, with the majority of agreeing that Vietnamese workers should have more options in social insurance payment, including a lump-sum pension benefit if they prefer to.
Reporting to the NA, Minister of Labor, War Invalids and Social Affairs Pham Thi Hai Chuyen said that the one-time social insurance payment is suitable with the demand of many low-income workers who would be in serious need of money to cover their daily expenses if they lose or quit their jobs.
These workers are mostly from the rural areas and often don’t have any long-term commitment to their employers nor a saving plan for their future retirement, she noted.
Currently Article 60 regulates that workers are not allowed to receive a big one-time payment when leaving a job; instead they would be paid a monthly allowance at retirement age. Workers are thus required to contribute to the social insurance fund for 20 years to be eligible to a retirement pay when they reach the retirement age. If 20 years are not accumulated they will still receive the lump sum, but only after having reached the retirement age.
At the meeting, Ms. Chuyen proposed revising the law to allow workers who have stopped working for one year and are not paying enough social insurance to receive a one-time insurance benefit. These workers are also allowed to continue keeping their insurance payment in reserve as outlined in the 2006 Social Insurance Law.
The Vietnam Social Insurance Fund now serves nearly 65 million health insurance and 12 million social insurance cardholders, out of Vietnam’s 54-million people workforce.
According to the Ministry of Labor, War Invalids and Social Affairs, between 2007 and 2014, 80% of people in the group eligible for a lump-sum payment, which mean they have not contributed to the fund for more than 15 years, decided to take the one-time benefit and only 20% decided to continue paying until their retirement age (for men 60, for women 55).
On average each year about 500,000 people got their lump-sum pension; this number rose to 605,783 in 2014 from 129,100 in 2007, the ministry added.
Lawmakers suggest the ministry raise the requirements to receive a one-time insurance payment in the near future so as to reduce the number of people having no pension or welfare when they retire.
The NA estimated the state budget allocated over VND3 trillion ($137.55 million) to supporting 1.5 million elders above 80-years-old without pensions in 2014.
The current NA sitting is slated to end on June 26.