By HK | Jun 23, 2015
Vietnam’s legislative body National Assembly on June 22 has passed a resolution on allowing workers to take lump-sum social insurance effective on January 1, 2016.
The resolution, approved by 404 deputies, or 81.78%, followed a government proposal on modifying Article 60 of the 2014 Law on Social Insurance, under which workers are not allowed to receive a big one-time payment when leaving a job but have to contribute to the social insurance fund for 20 years to be eligible for a monthly allowance at the retirement age.
With the resolution, workers can continue to reserve their social insurance premium paying period to be eligible for retirement pensions as outlined in the 2014 Law on Social Insurance.
Those who are eligible for a one-time insurance benefit are (i) workers who are under a compulsory social insurance plan and have stopped working for a year and (ii) those who are under a voluntary social insurance plan and have stopped contributed to the insurance fund (with the contribution period under 20 years).
The amount of annual lump-sum benefit would be calculated based on the years of insurance contribution.
The change was made in response to overwhelming demand from Vietnamese workers, especially the low-income group. In March, over 90,000 workers at a Taiwanese-owned factory in Ho Chi Minh City went on strike to oppose Article 60 before it takes effect next January.
Vietnam’s government is cautious about any moves that could cause labor unrest as its economy, especially the textiles and electronics manufacturing sectors, depends heavily on cheap labor force.
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, on average each year about 500,000 people get their lump-sum pension; this number rose to 605,783 in 2014 from 129,100 in 2007.
The current NA sitting is slated to end on June 26.
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June 23, 2015
Vietnam Legislators Pass Resolution on Lump-sum Social Insurance
by Nhan Quyen • [Human Rights]
By HK | Jun 23, 2015
Vietnam’s legislative body National Assembly on June 22 has passed a resolution on allowing workers to take lump-sum social insurance effective on January 1, 2016.
The resolution, approved by 404 deputies, or 81.78%, followed a government proposal on modifying Article 60 of the 2014 Law on Social Insurance, under which workers are not allowed to receive a big one-time payment when leaving a job but have to contribute to the social insurance fund for 20 years to be eligible for a monthly allowance at the retirement age.
With the resolution, workers can continue to reserve their social insurance premium paying period to be eligible for retirement pensions as outlined in the 2014 Law on Social Insurance.
Those who are eligible for a one-time insurance benefit are (i) workers who are under a compulsory social insurance plan and have stopped working for a year and (ii) those who are under a voluntary social insurance plan and have stopped contributed to the insurance fund (with the contribution period under 20 years).
The amount of annual lump-sum benefit would be calculated based on the years of insurance contribution.
The change was made in response to overwhelming demand from Vietnamese workers, especially the low-income group. In March, over 90,000 workers at a Taiwanese-owned factory in Ho Chi Minh City went on strike to oppose Article 60 before it takes effect next January.
Vietnam’s government is cautious about any moves that could cause labor unrest as its economy, especially the textiles and electronics manufacturing sectors, depends heavily on cheap labor force.
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, on average each year about 500,000 people get their lump-sum pension; this number rose to 605,783 in 2014 from 129,100 in 2007.
The current NA sitting is slated to end on June 26.