Reducing the minimum social insurance payment period: Increasing benefits for employees

Workers' joy

As a worker in the ironing department of Mareep Nghe An Company Limited, Mr. Hoang Cong Anh (born in 1991, residing in Dien Thinh commune, Dien Chau district) shared: “Although I have worked for many years, experienced many jobs and professions, the number of years of official social insurance contributions is only 9 years. Previously, I was worried because I had to pay social insurance for 20 years to receive a pension, while my health was not good, it was difficult to pursue the job of a garment worker for a long time. With the new policy, I only need to try for 6 more years to be able to retire with a stable salary. This makes me feel more secure about the future."

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With the new policy, I only need to try for another 6 years to be able to retire with a stable salary. This makes me feel more secure about the future.

Mr. Hoang Cong Anh - Mareep Nghe An Company Limited.

Mr. Duong Van Hoang - Chairman of the Trade Union of Mareep Nghe An Company Limited said: "We have disseminated to the employees of the company the changes ofSocial Insurance Lawand almost all workers are happy with the adjustment of the minimum social insurance payment period to receive pension from 20 years to 15 years. For the garment industry, workers often work in a difficult, toxic environment, easily losing their ability to work. When they are old, many workers are worried about quitting their jobs without having paid enough social insurance to receive pension. However, with this new policy, many workers are less worried and feel secure in their jobs.

For those who are participating in voluntary social insurance, this new policy also brings a lot of excitement. For example, Ms. Nguyen Thi Lan Huong (born in 1963, residing in Hung Dung ward, Vinh city), used to be a worker at Nghe An Food Company. In 1995, she quit her job under Regime 176. Over the past 30 years, due to difficult family circumstances, she has done many different jobs, from trading to working as a maid, janitor and is currently cleaning an apartment building in Hung Phuc ward (Vinh city). At the end of 2020, thanks to the propaganda of social insurance collection agents, she started paying voluntary social insurance. "Because I joined social insurance late, I was very worried, not knowing when I would be able to pay enough for 20 years to receive a pension. Now, with the new policy, the opportunity for me to receive a pension has become clearer, helping my life in old age to be more stable".

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My chances of receiving a pension became clearer, making my old age life more stable.

Ms. Nguyen Thi Lan Huong (Hung Dung ward, Vinh city)

Ms. Phan Thi Lien (born in 1969) - a small trader in Do Luong town expressed: "As a small business owner, I always want to participate in voluntary social insurance to ensure my life when I retire. However, in the past, I was afraid because I had to pay for too long to receive my pension. Now the new policy helps me feel more confident to continue participating."

Humanitarian policy

According to data from the Vietnam Social Security, by the end of 2024, the country had nearly 20.11 million people participating in social insurance, reaching a rate of 42.71% compared to the working-age labor force. Of which, the number of people participating in compulsory social insurance was 17.82 million people, the number of people participating in voluntary social insurance was 2.29 million people.

However, the proportion of workers eligible for pensions remains low, especially among the self-employed and farmers. The main reason is that the requirement to pay social insurance for a minimum of 20 years makes many people unable to meet it. During the 7 years of implementing the Social Insurance Law 2014 (from 2016 - 2023).

During the 7 years of implementing the Law on Social Insurance 2014 (from 2016 to 2023), more than 53,000 people who have passed the retirement age have chosen to receive social insurance benefits in one lump sum; more than 60,000 people who are of retirement age but do not have enough time to pay social insurance have chosen to pay in one lump sum for the remaining years to receive pension.

Reducing the minimum social insurance contribution period to receive pension to 15 years will help solve this problem, helping to increase the social security coverage rate, especially for vulnerable labor groups such as farmers, workers and the self-employed. This not only ensures the rights of workers but also contributes to reducing the burden on families and society when the elderly do not have a stable income.

For Nghe An, a locality with a large agricultural and self-employed workforce, this policy is expected to have very positive impacts. Thousands more people are expected to be eligible for pensions when the Social Insurance Law 2024 comes into effect.

According to Ms. Le Thi Dung - Deputy Director of Nghe An Social Insurance, this agency is promoting propaganda to target groups at the grassroots level, organizing consultation conferences and dialogues on social insurance policies for farmers, workers and people in the province. Thanks to that, Nghe An is considered one of the localities that has done a good job of mobilizing people to participate in voluntary social insurance. Reducing the minimum social insurance payment period to receive pension to 15 years will be very beneficial for voluntary social insurance participants, especially the group of workers who participate in social insurance late (about 45 - 47 years old). Therefore, this policy is expected to help increase the number of people participating in voluntary social insurance in the province, while contributing to reducing the number of people receiving one-time social insurance.

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When people are assured of a secure life in old age, they will have more incentive to participate in the labor market and contribute to the economy.

Ms. Le Thi Dung - Deputy Director of Social Insurance of Nghe An province

Representatives of Nghe An Social Insurance also recommended that with a shorter social insurance payment period, the pension will be lower than those with a longer payment period. Therefore, workers should consider continuing to participate in social insurance after 15 years to increase their pension, ensuring a better life when they retire./.