Pensions will be adjusted to the same level as the basic salary or higher.

Currently, many businesses are trying to avoid paying social insurance, causing disadvantages to employees.

Discussing the situation of workers falling into poverty upon retirement, Mr. Mai Duc Chinh, Vice President of the Vietnam General Confederation of Labor (VGCL), said that the Social Insurance Fund operates on the principle of mutual benefit, but the problem here is that enterprises have deliberately avoided paying Social Insurance or paid at the lowest possible level, causing workers to be disadvantaged in terms of social security when they retire.

According to Mr. Chinh, the current minimum wage only meets about 70% of the minimum living standard. When workers retire, their pension to meet the minimum living standard will be lower, making life more difficult.

Mr. Chinh frankly admitted that now, businesses that pay a minimum wage of 3.1 million VND/month will not have anyone to work for them, so they have added other income such as food allowance, housing allowance, diligence allowance, productivity allowance, etc. In fact, businesses do not include these amounts directly in salaries, but they calculate them separately to avoid paying social insurance for employees, and employees suffer this disadvantage.

Mr. Chinh added that the Vietnam General Confederation of Labor is "fighting" to implement the roadmap from January 1, 2016, which will apply the social insurance contribution rate according to Article 90 of the Labor Code (including salary and incomes of a salary nature such as overtime pay, etc.). However, other ministries and branches said that the economic situation is difficult, businesses cannot bear it, so they agreed to postpone the roadmap until 2018 to implement.

Mr. Chinh assessed that compared to receiving a one-time social insurance regime, the total pension that employees receive throughout their retirement years is three times higher. In addition, although the pension is low, when they still participate in the social security system, they will be examined by a health insurance card. On the other hand, according to the roadmap, it is expected that by 2016, employees receiving pensions lower than the basic salary (1,150,000 VND/month) will be adjusted to the same level as the basic salary.

“Those who have participated in social insurance for less than 10 years can consider receiving a one-time social insurance benefit, while those who have participated for more than 15 years should calculate to receive a pension which will be more beneficial when they retire,” Mr. Chinh commented./.

According to the Communist Party of Vietnam