Social Insurance - Peace for Old Age

Vietnam Social Security directs Social Security agencies of provinces and cities to adjust and pay 2 months of pension and social insurance allowances for January and February (according to the increased salary level in Decree 108/2021/ND-CP) in the same payment period of January 2022. The above policies are assessed by many experts as timely, bringing joy to pensioners.

Tet comes early

Immediately after the announcement of Decree 108/2021/ND-CP, the Social Security Agency hotline received many calls asking about the adjustment time and the time to receive the new salary. Everyone is eager to receive it before Tet so they can prepare for a better Tet.

Pension distribution point at block 2, Doi Cung ward (Vinh city). Photo: Diep Thanh

For the past month, the topic of pension increase has been the top concern of the elderly residents of Block 2, Doi Cung Ward, Vinh City. Whenever they meet each other at the market, on the street, or in the gossip sessions of the neighbors, the men and women are excited and chat about this topic, some say they read it in the newspaper, some say their children told them, some say they watch TV… Together, the neighborhood forum has a panoramic picture full of joy in the days before Tet. Everyone is looking forward to the day they receive their salary.

On the morning of January 8, 2022, gathering at the Cultural House of Block 2 to receive their salaries, that joy was once again evident in their wrinkled eyes. 82-year-old Dang Van Hao in Block 2, Doi Cung Ward shared: “I retired in 1990, my old salary was more than 4.8 million VND, now it has been increased by 7.4%. My living needs are not much, but prices are now climbing, I have more to support my children and grandchildren during the pandemic, which is very exciting.”

For retirees, pension is both a material and spiritual support. Photo: Diep Thanh

While waiting for their turn to receive their salary, everyone was excitedly calculating the amount of money they would receive this time. Besides the joy of their own salary increase, everyone also expressed joy for those who retired before 1995 with a salary of less than 2.5 million VND with 2 increases. An old woman confided: “I think this policy is very reasonable. The people who retired before 1995 that I know are both old and poor, and really need to be shared and supported.”

After receiving his two-month salary, before going home, an old man stopped by to say hello to his friends. He clapped his hands in his pockets and said cheerfully: “Tet is here, ladies and gentlemen!”

That joy also made the atmosphere at the pension payment point in block 11, Cua Nam ward more cozy. Ms. Nguyen Thi Lan (block 14, Cua Nam ward) sat counting the money she had just received, she choked up, "My husband is a war invalid, one child was infected with Agent Orange, and he also has eye cancer. The whole family depends on my husband and I's two pensions, especially during the outbreak, when we couldn't do any business or trade. Now that the State has adjusted my salary, I'm very excited. In my situation, even a single dong increase is very valuable."

Changing pensions is a humane decision. Photo: Diep Thanh

Sharing the same feelings, Ms. Tran Thi Ha (Ha Huy Tap ward) also received the salary increase news with many expectations. Due to health reasons, Ms. Ha had to quit her job early, she switched to payingVoluntary social insuranceto receive a pension in old age. The family is near-poor, the husband is a freelance worker with an unstable income, the child is still in school, Ms. Ha's salary of nearly 3 million VND is considered a fixed income to cover tuition fees and repay the Policy Bank. "Because the pandemic has lasted for a long time, my husband has no income, the cost of education for my youngest daughter is also higher, so sometimes I feel very stuck, not knowing what to do when Tet is approaching. The policy of increasing salaries for pensioners like us is really humane and timely."

According to the International Labor Organization (ILO), the pension system, also known as old-age insurance, is one of the important policies to ensure social security. This is one of the policies that employees enjoy when participating in social insurance. The pension system ensures income for employees who have reached the legal retirement age, and at the same time enjoys other policies such as death benefits and funeral expenses. In addition, pensioners are also issued health insurance cards for medical examination and treatment.

A more solid support

In order to promptly adjust pensions and social insurance benefits in accordance with the provisions of Decree 108/2021/ND-CP and pay 02 months of pensions according to the new salary level to people, Nghe An Provincial Social Insurance has focused all its efforts, working day and night.

Sharing about the implementation process of Decree 108/2021/ND-CP, Mr. Nguyen Van Luong - Deputy Head of Regime Department, Provincial Social Insurance said: Nghe An Social Insurance has adjusted pensions for more than 165,000 beneficiaries, with 2 reviews, ensuring accurate and timely payment of 2 months of pension in the same payment period of January 2022 in accordance with the direction of Vietnam Social Insurance".

According to Mr. Nguyen Van Luong, Nghe An is one of the localities with the largest number of pensioners and social insurance beneficiaries nationwide and is currently the leading province in the country in terms of the number of people participating in voluntary social insurance. In 2021, Nghe An province surpassed the milestone of 100,000 people participating in voluntary social insurance, accounting for nearly 9% of the total number of people participating in voluntary social insurance nationwide. This is a very remarkable result of Nghe An Social Insurance. It is also the joy of those implementing social insurance policies when more and more people understand the practical benefits of participating in voluntary social insurance.

Mr. Nguyen Van Luong - Deputy Head of Regime Department, Provincial Social Insurance said: Provincial Social Insurance Agency has made every effort to pay new pensions in a timely manner. Photo: Diep Thanh

To bring social insurance policies to people in the context of the epidemic, Nghe An Social Insurance has flexibly changed from centralized propaganda to online propaganda via social networks, Zoom software, Zalo... Through a team of collaborators in localities to invite freelance workers to attend online sharing and consulting sessions every Saturday evening. At the same time, combined with distributing leaflets and direct consultation via connection channels such as phone, electronic information portal, Facebook...

Mr. Nguyen Van Luong also warned of a very worrying trend of "harvesting unripe rice" that is happening. That is, people who have participated in social insurance for less than 20 years have requested to receive social insurance at one time. When receivingone time social insurance, although the employee will have a sum of money to cover immediate expenses, he will lose the opportunity to enjoy retirement benefits when he reaches retirement age. In addition, those who receive one-time social insurance must accept a huge loss. With the rate of 22% of monthly salary contributed to the pension and death fund, the total contribution for 1 year is 2.64 months of salary; while the one-time social insurance benefit for each year of social insurance contribution is only equal to 2 months of salary. Thus, the employee loses 0.64 months of salary. If compared with the additional savings to receive a pension, the loss is incalculable.

Nghe An Social Insurance cooperates with the provincial Post Office to deploy pension distribution points to people in a timely manner. Photo: Diep Thanh

Mr. Luong also emphasized that pension levels are adjusted periodically every year according to the consumer price index and economic growth rate... Therefore, the Government does not encourage receiving one-time social insurance payments because of the goal of ensuring sustainable social security for the people. To help people consider carefully before deciding to receive one-time social insurance payments, social insurance agencies from the province to the district have established a consulting team right at the application receiving department.

Resolution No. 28-NQ/TW sets the general goal of "Gradually and steadily expanding the coverage of social insurance, towards the goal of universal social insurance", aiming to reach about 35% by 2021, about 45% by 2025, and about 60% of the working-age population participating in social insurance by 2030. This is a big challenge, requiring the active participation of all levels and sectors, and also requiring each person to be aware of building a social security foundation for themselves from today.

According to Decree 108/2021/ND-CP, from January 1, 2022, the Government will adjust the pension level of December 2021 by 7.4% for 7 beneficiaries of pension, social insurance benefits and monthly allowances.

For those who retired before January 1, 1995:

Increase by 200,000 VND/person/month for those who, after adjustment, have pension, social insurance benefits, and monthly benefits of 2,300,000 VND/person/month or less;

Increase by 2,500,000 VND/person/month for those who, after adjustment, have pension, social insurance benefits, and monthly benefits from 2,300,000 VND/person/month to less than 2,500,000 VND/person/month.

The pension, social insurance allowance, and monthly allowance after adjustment according to this regulation will be the basis for adjusting pensions and allowances in subsequent adjustments.

Diep Thanh