Voluntary social insurance contributions and benefits

1. What is voluntary social insurance?

Voluntary social insurance is a type of insurance organized by the State in which participants can choose a payment level and payment method suitable to their income.

Citizens aged full 15 years or older and not subject to compulsory social insurance participation can participate in voluntary social insurance.

According to the provisions of Point 1.1, Clause 1, Article 3 of Decision 959/QD-BHXH, participants can purchase voluntary social insurance at the district social insurance agency where they reside (temporary or permanent residence).

2. The regime of voluntary social insurance

According to Clause 2, Article 4, Law on Social Insurance 2014, voluntary social insurance includes 2 regimes: retirement and survivorship, specifically:

– Get a monthly pension.

– Get a one-time allowance.

– Funeral allowance.

– One-time survivorship allowance.

– Health insurance benefits.

3. Voluntary social insurance payment rate

According to Clause 2, Article 87 of the Law on Social Insurance 2014, the voluntary social insurance contribution rate is equal to 22% of the income level chosen by them. In which, the monthly income as the basis for payment must be at least equal to the poverty line for rural areas (1,500,000 VND/person/month) and maximum 20 times the base salary (equivalent to 29.8 million VND). /month).

4. Method of participating in voluntary social insurance

Currently, there are 6 participating methods that participants can choose from:

(1) Monthly payment;

(2) Pay once every 3 months;

(3) Pay once every 6 months;

(4) Pay once every 12 months;

(5) One-time payment for many years to come, but not more than once every five years;

(6) One-off payment for the missing years for those who have reached the pension age but the remaining payment period does not exceed 10 years.

In case, after reaching full retirement age, the remaining period of social insurance payment is over 10 years, participants who continue to pay according to one of the above 5 methods until the remaining payment period is not more than 10 years will be entitled to one-time payment for the missing year (according to method 6).

5. Voluntary social insurance benefits

*Retirement rate:

According to Article 3 of Decree 134/2015/ND-CP, the monthly pension is calculated as:

Pension = Enjoyment rate x Average monthly income on which social insurance premiums are based

*Retirement lump-sum allowance:

According to Clause 2, Article 74 of the Law on Social Insurance 2014, the one-time allowance is calculated as follows: Each year the participants of voluntary social insurance pay higher than the corresponding number of years, the 75% pension enjoyment rate is calculated by 0.5 monthly average monthly income on which social insurance premiums are based.

*One-time social insurance benefits

The one-time social insurance benefit is calculated according to the number of years of paying social insurance premiums, each year is calculated as follows:

– 1.5 months the average monthly income on which social insurance premiums are based for those participating in social insurance before 2014.

– 2 months the average monthly income on which social insurance premiums are based for those participating in social insurance from 2014 onwards.

In case the period of payment of voluntary social insurance premium is less than 1 year, the rate shall be equal to the amount already paid, up to 2 months of the average monthly income on which social insurance premiums are based.

6. Survivorship regime for participants of voluntary social insurance

*Funeral allowance

According to Article 80 of the Law on Social Insurance 2014, the funeral allowance is equal to 10 times the base salary for those who have paid full 60 months or more or are enjoying a pension.

In case the voluntary social insurance payer is declared dead by the Court, his/her relatives are entitled to benefits

*Survival allowance

According to Article 81 of the Law on Social Insurance 2014, a participant in voluntary social insurance who is reserving the period of social insurance payment but unfortunately dies, his/her family member is entitled to a survivorship allowance equal to:

– 1.5 months the average monthly income on which social insurance premiums are based for those participating in social insurance before 2014.

– 2 months the average monthly income on which social insurance premiums are based for those participating in social insurance from 2014 onwards.

– People who have paid voluntary social insurance premiums for less than 1 year will enjoy the same amount as the paid amount, up to a maximum of 2 months of the average monthly income on which social insurance premiums are based.

– At least 3 months of the average monthly income on which social insurance premiums are based if participating in both compulsory social insurance and voluntary social insurance.

If a participant in voluntary social insurance who is enjoying pension unfortunately dies, his/her relatives will be entitled to a survivorship allowance equal to:

– If you die in the first 2 months of enjoying your pension, it will be equal to 48 months of your current pension.

– In case of death in the following months, for every additional 01 month of pension, the allowance will be reduced by 0.5 month of pension.

(According to Employee)