Social security (SS) voluntary contributions have increasingly attracted public attention due to the practical benefits they offer. Since July 1st, new regulations under the 2024 Social Security Law have expanded several attractive incentives for participants.
Benefits Before July 1st
Before July 1st, voluntary social security regulations were adjusted according to the 2014 Social Security Law. Participants in voluntary SS were entitled to two main benefits: retirement and survivorship. Other benefits such as sickness, maternity, occupational diseases, or work-related accidents were not covered by this scheme.
The calculation of the retirement pension for voluntary SS contributors is similar to that of mandatory SS. Specifically, female workers need at least 15 years of contributions, while male workers need 20 years to receive a pension equivalent to 45% of their average income contributions. Each additional year of contribution adds 2% to the pension, with a maximum of 75%.
Additionally, pension recipients are provided with free health insurance cards (HIC), covering 95% of medical expenses. Upon death, employees receive funeral allowances equal to 10 times the base salary and a one-time survivor benefit.
One standout advantage of voluntary SS over mandatory SS is state support for contributions. The level of support ranges from 10% to 30%, depending on the specific category of participant.
Voluntary SS participants benefiting from the new Social Security Law
Voluntary SS is increasingly attracting public interest (Illustration: Vietnam Social Security).
New Benefits Effective July 1st
The 2024 Social Security Law has introduced several notable benefits for voluntary SS participants, including:
1. Maternity Allowance
Under the new regulations, voluntary SS participants who have contributed for at least 6 months within the last 12 months before childbirth will be eligible for maternity allowance. This allowance is set at 2 million VND per child. In cases of fetal death during pregnancy or labor, the same allowance still applies.
Notably, this allowance is fully funded by the state budget, requiring no additional contributions from participants. Additionally, female workers from low-income households or those married to ethnic minorities may qualify for additional support policies.
2. Reduced Minimum Contribution Period for Retirement
Another significant change is the reduction of the minimum contribution period required for retirement benefits from 20 years to 15 years. This makes it easier for workers, especially those with low incomes or in informal sectors, to access retirement benefits.
3. Proposal to Increase Contribution Support Levels
The Ministry of Labor, Invalids, and Social Affairs is currently soliciting feedback on a draft decree to increase contribution support levels for voluntary SS participants. The proposed support levels could rise to 50% for those in low-income households, 40% for near-poor households, and 30% for ethnic minority individuals.
Conclusion
With the significant improvements introduced by the 2024 Social Security Law, voluntary SS participants now enjoy more benefits and easier access to social security programs. This is a crucial step towards encouraging greater participation in social security, contributing to the development of a sustainable welfare society.
Consider joining voluntary social security today to secure your future and that of your family!
Source: Dan Tri
