New Social Insurance and Health Insurance policies take effect from January 1, 2023

I.New Social Insurance and Health Insurance policies effective from 2023:

1.Retirement age in 2023:

According to the provisions of Article 169 of the 2019 Labor Code and Decree 135/2020/ND-CP, the retirement age of employees will be adjusted to increase according to the roadmap until men reach 62 years old in 2028 and women reach 60 years old in 2035.

2023 is the third year of implementing the adjustment to increase the retirement age of workers.

Accordingly, the retirement age will increase by 03 months for men and 04 months for women.

For employees working under normal conditions, the retirement age in 2023 is as follows:

- For men, it is from 60 years and 9 months. For example: male workers born in July 1962 will retire in May 2023.

- For women, it is from 56 years old. For example: female workers born in May 1967 will retire in June 2023.

This is the retirement age under normal working conditions. There are still cases where workers can retire 5 years or even 10 years earlier.

For example, workers with reduced working capacity; working in particularly arduous, toxic, or dangerous jobs; working in particularly difficult areas can retire at a lower age of up to 5 years. (That is, 55 years and 9 months for men and 51 years old for women).

Provincial Social Insurance officers disseminate the Law on Health Insurance to students of Cua Nam 1 Primary School (Vinh City). Photo: My Ha

2.Basic salary increase from July 1, 2023:

On November 11, 2022, the National Assembly passed a Resolution on the 2023 state budget estimate.

Accordingly, from July 1, 2023, the basic salary for cadres, civil servants and public employees will increase to 1.8 million VND/month, equivalent to an increase of 20.8% compared to the current basic salary. Currently, the applied basic salary is 1.49 million VND/month.

In addition to increasing the basic salary to 1.8 million VND/month, there will also be a 12.5% ​​increase in pensions and social insurance benefits for subjects guaranteed by the state budget and additional support for those who retired before 1995 with low benefits. In 2022, although the basic salary will not increase, many subjects will receive an additional 7.4% increase in pensions and social insurance benefits according to Decree 108/2021/ND-CP.

In addition, according to Clause 5, Article 56 of the LawSocial insurance2014, the lowest monthly pension for employees participating in compulsory social insurance who are eligible for pension will be equal to the basic salary. Due to the adjustment of the basic salary in 2023, the minimum pension will increase from VND 1,490,000/month to VND 1,800,000/month from July 1, 2023.

Comrade Le Thi Dung - Deputy Director of Nghe An Provincial Social Insurance and Associate Professor, Dr. Nguyen Thi Thu Cuc - Vice Principal of Vinh University presented Health Insurance Cards to students in difficult circumstances. Photo: Cong Kien

II.Policies to support the contribution level from the central and local budgets for health insurance participants

1.Policy to support the contribution level from the Central budget for health insurance participants:

According to the provisions of Decree 146/2018/ND-CP dated October 17, 2018 detailing and guiding measures to implement a number of articles of the Law on Health Insurance, there are 4 groups of subjects supported by the state budget for health insurance premiums, including:

(1) People belonging to near-poor households according to the near-poor criteria prescribed by the Government and the Prime Minister. Support level: 70% of the health insurance premium.

In case of people belonging to near-poor households living in poor districts according to Resolution 30a/2008/NQ-CP dated December 27, 2008 and districts applying mechanisms and policies according to Resolution 30a/2008/NQ-CP, they will be supported with 100% of the health insurance premium.

(2) People in multidimensionally poor households do not fall into the following cases:

People belonging to multidimensionally poor households with a shortage of health insurance as prescribed in Decision 59/2015/QD-TTg dated November 19, 2015 and other decisions of competent authorities amending, supplementing or replacing the poverty line applicable for each period. Support level: 70% of health insurance contribution.

(3) Students: Support level: 30% of health insurance premium.

(4) People in households engaged in agriculture, forestry, fishery and salt production with an average living standard according to regulations of the Government and the Prime Minister. Support level: 30% of the health insurance premium.

In case a person belongs to many subjects who are supported by the state budget for health insurance premiums according to the above regulations, he/she will enjoy the health insurance premium support level according to the subject with the highest support level.

=> The monthly health insurance contribution for this group is 4.5% of the basic salary.

Thus, when the basic salary increases, the contribution level of this group will increase and the support level from the central budget will also increase accordingly.

Propaganda and mobilization of people to participate in voluntary social insurance and family health insurance in Vinh city. Photo: Thanh Chung

2.Policy to support contribution from local budget for health insurance participants

In order to expand the coverage of Health Insurance, helping low-income people have the conditions to participate and enjoy Health Insurance policies, on November 13, 2020, Nghe An Provincial People's Council issued Resolution No. 14/2020/NQ-HDND stipulating the level of support for Health Insurance contributions for a number of subjects in Nghe An province for the period 2021-2025. Accordingly, in addition to the level of support for health insurance contributions from the Central Budget, Health Insurance Participants from near-poor households and households working in agriculture, forestry, fishery and salt production with an average living standard in the province are supported by the local budget to pay Health Insurance.

Specifically as follows:

Health insurance participants in the group of people belonging to near-poor households according to the near-poor standard criteria are supported by the provincial budget with 30% of the health insurance premium (the central budget supports 70%). Thus, in the period of 2021-2025, people belonging to near-poor households in the province are supported with 100% of the health insurance premium.

From January 1, 2023, people in agricultural, forestry, fishery and salt-making households with an average living standard in Nghe An province will receive 50% of the contribution from the budget when participating in Health Insurance (Increased by 5% compared to 2022, 10% compared to 2021).

In there:

The state budget supports 30% of the contribution, equivalent to: 241,380 VND

Local budget supports 20% of the contribution, equivalent to: 160,920 VND

The contribution level when participating in Health Insurance for people in households working in agriculture, forestry, fishery, and salt production with an average living standard in Nghe An province in 2023 is: 402,300 VND/person/12 months.