Should workers take a 'lump sum' leave?
The situation of many workers quitting their jobs to receive social insurance at one time instead of keeping them for retirement is causing concern for many businesses.
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| People do procedures at Ho Chi Minh City Social Insurance. |
Not "keen" on pension
Ms. Nguyen Thi Nga (39 years old) - a garment worker in Binh Duong province - has participated in social insurance for 17 years and is wondering whether she should quit her job to receive social insurance "in one lump sum" to return to her hometown to open a small shop or save money.
She heard many people say that if she kept her salary to receive it later, she would be at a disadvantage and her pension would not be enough to live on.
| 700,000- is the expected number of people receiving one-time social insurance in 2017. This number in 2016 was 665,000 |
Ms. Nguyen Thi Cam Trang (35 years old) - a leather shoe worker in Ho Chi Minh City - also decided to quit her job to receive a "lump sum" after 15 years of paying social insurance. She saw that many leather shoe and garment companies... were not "eager" to keep female workers over 35 years old, so even though she was not fired, she still received a "lump sum" and voluntarily left to find a new job or return to her hometown to start a business.
Mr. Nguyen Xuan Kien - a worker at Song Than Industrial Park (Binh Duong) - also heard rumors that from 2018, workers will have to pay social insurance based on their total monthly income, including all other allowances, and the contribution rate will be much higher.
According to statistics from Vietnam Social Security, in the period 2013-2016, 2.5 million workers received one-time social insurance. In the first 9 months of 2017, there were nearly 537,000 people and it is forecasted that by the end of 2017, there will be about 700,000 people receiving one-time social insurance, mainly in the southern provinces.
About "a lump" very disadvantageous
Faced with this situation, Vietnam Social Security has issued an official dispatch advising employees to consider carefully when deciding to receive one-time social insurance payments, because this could deprive them of future opportunities.
Mr. Do Ngoc Tho - Deputy Head of the Social Insurance Policy Implementation Department (Vietnam Social Insurance) - analyzed: The longer the social insurance payment period, the more the amount will be adjusted according to the consumer price index. The money will not be lost but will grow.
If during the retention period, the employee unfortunately passes away, relatives will also receive a funeral allowance equal to 10 months of basic salary and, depending on conditions, will receive a monthly death benefit.
For retired workers, in addition to salary, they are also given a health insurance card.
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Mr. Tho also pointed out the disadvantage of receiving social insurance in one time: Currently, the contribution to the pension fund for the death benefit is 22% of the monthly salary, which means that the total contribution to the social insurance fund in one year is about 2.64 months of salary. If receiving social insurance in one time, the payment is only equal to 2 months of salary in one year.
Not everything is subject to social insurance.
However, there is a reason why workers still tend to receive social insurance at one time. Mr. Pham Minh Thanh - Deputy Director of Social Insurance of Dong Nai province - commented: Currently, the rate of social insurance contribution is high but the actual amount of money paid to social insurance is low, making the salary upon retirement not enough to live on, and workers are also wary.
| 13 million- is the number of employees paying social insurance nationwide, accounting for 24% of the total number of employees. The target set for 2020 is 50% of the total number of employees. |
They are also worried that in 2018, the social insurance contribution rate will be calculated based on total income, affecting their current life. A representative of the Ho Chi Minh City Social Insurance said that this is an incorrect understanding.
According to this representative, not all income is included in the social insurance contribution from January 1, 2018: Amounts such as bonuses, initiative bonuses, mid-shift meal allowances, gas, phone, childcare, housing... are not included in the income for social insurance contribution.
And if the social insurance is paid based on actual income, the employee only has to pay more than 1/3 of the social insurance fee. On the contrary, when they are sick, pregnant or retired, their salary from the social insurance fund will increase much higher and they will receive 100% of the increased contribution.
From January 1, 2018, according to the roadmap, male workers must work for 35 years and female workers must work for 30 years to receive a maximum pension of 75% instead of 30 years and 25 years as at present. From January 1, 2018, female workers who retire after paying social insurance for 15 years will receive a pension equal to 45% of the average monthly salary paid for social insurance. From the 16th year onwards, the social insurance benefit will increase by 2%; paying for 30 years will receive a maximum pension of 75% instead of 25 years as at present. Currently, male workers who have paid social insurance for 15 years receive a pension of 45% of their average monthly salary. From January 1, 2018, to receive the above level, male workers must pay for 16 years. To receive a pension at the maximum level of 75%, male workers must pay insurance for 35 years, instead of 30 years as at present. Faced with the increase in the number of years required to receive the maximum pension, some workers in their 30s and 40s, instead of having to pay more and wait a few more years to receive their pension, choose to receive it "in one lump sum". |
According to Tuoi Tre Newspaper
