Adjust to reduce the minimum insurance payment period to receive pension?

The minimum social insurance contribution period to receive pension may be reduced to 10 years.

According to the current Law on Social Insurance, to receive a monthly pension, employees must meet two conditions: age and minimum time participating in social insurance.

Currently, the regulation requiring a minimum participation period of 20 years to enjoy retirement benefits is considered one of the major obstacles that hinder the expansion of social insurance coverage.

According to Deputy Minister of Labor, Invalids and Social Affairs Doan Mau Diep, in the labor market, many workers are only starting to participate in social insurance at the age of 40-45. If the current regulation requires them to pay social insurance for at least 20 years before they can receive a pension, they will not have enough time to participate in order to receive a pension. Therefore, their desire to ensure their own security through the pension system will not be achieved.

In addition, the above regulation also affects the right to access social security of workers as recognized in the Constitution. At the same time, it affects the social security policy which is moving towards pensioners being able to ensure their own social security instead of depending on the monthly allowance from the State.

Extending the social insurance participation period to 20 years also makes workers not want to reserve their social insurance participation period. Instead, they choose to receive social insurance in one lump sum.

In this reform of social insurance policy, adjusting the social insurance payment period towards gradually reducing the number of years of payment will contribute to the goal of expanding social insurance coverage, towards ensuring that all elderly people have pensions when they retire.

Analyzing the plan to shorten the social insurance payment period to receive pension in accordance with the spirit of Resolution No. 28/NQ-TW, Deputy Minister Doan Mau Diep said that the regulation on the minimum payment period of 10 years or 15 years to receive pension does not affect the Fund's ability to balance as many people worry. Based on the payment-benefit principle, the benefit level is calculated in accordance with the payment level and payment period.

The drafting agency will study and propose, and the benefit level according to the new contribution method will be calculated appropriately to create conditions for elderly workers with low years of social insurance participation to access and enjoy social insurance benefits.

The gradual reduction in the minimum number of years of social insurance contributions to receive pension benefits from 20 years to 15 years and 10 years will help ensure that many workers have the opportunity and conditions to continue participating in social insurance to receive monthly pensions instead of choosing one-time social insurance, aiming to ensure long-term social security for the people.

Currently, many countries in the world and in the region have also stipulated a minimum social insurance payment period of 10 years such as Japan and Korea, although previously they also stipulated a condition of 20 years of social insurance payment like Vietnam.