According to Mr. Phạm Trường Giang, Head of the Social Insurance Department at the Ministry of Labor, Invalids, and Social Affairs, approximately 109,000 people have withdrawn their social insurance once with a contribution period of 15 years or more. This highlights the urgent need to improve policies to increase pension opportunities for workers.
Key Changes in the 2024 Social Insurance Law
The 2024 Social Insurance Law has reduced the minimum required contribution period for receiving a pension from 20 years to 15 years. This change not only expands benefits for domestic workers but also provides greater opportunities for special groups, including Vietnamese workers abroad and foreign workers in Vietnam.
Increased Benefits for Vietnamese Workers Abroad
Mr. Phạm Trường Giang emphasized that under the bilateral agreement between Vietnam and South Korea on social insurance, about 50,000 Vietnamese workers in South Korea will now have the opportunity to receive a pension. The agreement recognizes the social insurance contributions made in both countries, allowing workers to accumulate enough credits for retirement benefits.
Mr. Phạm Trường Giang, Head of the Social Insurance Department (Photo: Nguyễn Hải).
In the draft circular guiding the implementation of certain provisions of the Social Insurance Law, the Ministry of Labor, Invalids, and Social Affairs has proposed a specific calculation method for pensions for workers who have contributed to social insurance abroad. Specifically, if the contribution period in Vietnam is less than 15 years, each year of contribution will be calculated at 2.25% of the average salary used as the basis for social insurance contributions.
Encouraging Workers to Stay in the System
Regarding the one-time withdrawal of social insurance, Mr. Giang noted that the 2024 Social Insurance Law includes several provisions aimed at increasing benefits and encouraging workers to remain within the system. Under these provisions, employees terminating their contracts under any of six specified circumstances will be eligible for a one-time social insurance benefit.
Additionally, those currently in the system who wish to leave can withdraw their social insurance once. Conversely, choosing to stay in the system allows workers to enjoy additional benefits such as credit support, monthly allowances, and other incentives.
New policies expand benefits for workers.
Significance of These Changes
The changes in the 2024 Social Insurance Law not only address the issue of social security but also contribute to improving the quality of life for workers. Reducing the minimum contribution period to 15 years and expanding benefits for foreign workers and Vietnamese workers abroad marks a significant step toward building a sustainable social security system.
Conclusion
The 2024 Social Insurance Law offers greater pension opportunities for tens of thousands of workers. Additionally, new policies encourage long-term engagement with the social insurance system, ensuring a stable life in retirement. Take the time to understand the new regulations to maximize your benefits.
Source: Dân Trí
