According to the Ministry of Labor – Invalids and Social Affairs, the regulation on the minimum time to enjoy the pension is too strict, leading to a large number of people participating in leaving the social insurance system before the retirement age is quite large. Law on Social Insurance No. 58/2014 / QH13 (Law on Social Insurance 2014) was passed by the XII National Assembly of the Socialist Republic of Vietnam at its 4th session on November 20, 2014 (replacing the Law on Social Insurance. Assembly No. 71/2006 / QH11), effective from January 1, 2016 (separate provisions at Point b, Clause 1 and Clause 2, Article 2 take effect from January 1, 2018). The Ministry of Labor – Invalids and Social Affairs said that by the end of December 2020, more than 16 million people participated in social insurance (accounting for about 33.5% of the workforce in the age group); 13.3 million people participated in unemployment insurance (accounting for 27.8% of the workforce in the age group); Social insurance revenues (from the contributions of employees and employers) in 2020 is nearly 260 trillion VND, an increase of nearly 11 times compared to 2007 is the first year implementing the Law on Social Insurance. However, the practical process of implementing the Law on Social Insurance has also revealed many limitations and shortcomings. In particular, according to this Ministry, the regulations on the minimum time to enjoy pensions are too strict, leading to a large number of people participating in leaving the social insurance system before the retirement age is quite large.
Under the provisions of the Law on Social Insurance, the minimum period of participation in social insurance is required to have the opportunity to enjoy the full retirement regime of 20 years. This leads to many people not accumulating enough years of social insurance payment to enjoy pensions.
Many countries stipulate that the time of participation in 10-year social insurance is eligible for pension, although the pension level may be low, it is still better to switch to the old age pension or social pension (universal social insurance floor) guaranteed by the state budget.
The Ministry of Labor, War Invalids and Social Affairs proposes and modifies the conditions for enjoying the pension in the direction of gradually reducing the number of years of payment of the minimum social insurance premium in order to enjoy the pension regime from 20 years to 15 years, aiming to 10 years with an appropriate calculated rate in order to create conditions for the elderly workers with low number of years participating in social insurance to access and enjoy social insurance benefits.
Source: ndh.vn – Translated by fintel.vn