/2007 To 10/2008: Salary = 3,000,000 VND 14 Months Nnn Area

= 2,412,473 VND

- Mr. Minh's pension:

L H = 2,412,473 x 75% = 1,809,355 VND

c. Group 3: Employees working only in the non-state sector (wage regime decided by the employer)

 The Social Insurance premium is calculated based on the total period of social insurance premium payment based on the salary received.

Signed.

 Calculation formula:

Conclude:

Σ L CCĐ Social Insurance KVNNN

L Board of Social Insurance = ———————————————

Σ Social insurance premium payment period

- When calculating Pension, two basic components must be determined: r and L BQCCĐ BHXH

- Lowest pension = L min- time at retirement.

(Practice the attached exercises from Lessons 1,2,3,4,5,6)

3.5. One-time allowance:

3.5.1. Cases eligible for retirement and receiving a one-time pension upon retirement:

For employees who have paid social insurance premiums for a long time. Specific regulations are as follows:

- For women: have paid social insurance premiums for over 25 years (>25 years).

- For men: have paid social insurance premiums for over 30 years (>30 years).

Calculation:

+ For every 1 year increase , you will receive 0.5 x L BQCCĐ Social Insurance .

+ Calculate odd months:

For example:

≤ 2 months: not counting 3 months ≤ Time ≤ 6 months: counting 0.5 years

> 6 months: count as 1 year

1. Mr. AC has paid social insurance premiums for 31 years and 3 months. Calculate his one-time subsidy.

Knowing that Mr. AC's social insurance premium is 2,870,000 VND.

- Time to receive one-time subsidy:

31 n 3 th  is calculated as 31.5 years

31.5 years – 30 years = 1.5 years

- One-time subsidy = 1.5 x 0.5 x L BQCCĐ BHXH = 1.5 x 0.5 x 2,870,000 = 2,152,500 VND.

2. Ms. AD has paid social insurance premiums for 29 years and 8 months. Calculate her one-time subsidy. Knowing that Ms. AD's social insurance premium is 1,850,000 VND.

- Time to receive one-time subsidy:

29 n 8 th  is counted as 30 years

30n – 25n = 5 years

- One-time subsidy = 5 x 0.5 x L BQCCĐ BHXH = 5 x 0.5 x 1,850,000 = 4,625,000 VND.

3.5.2. Cases not eligible for retirement:

3.5.2.1. Cases where one-time subsidy is not granted:

If a worker:

- 20 years of social insurance premium payment (t ≥ 20 years)

- And age is not enough.

- And the labor process is over.

 Workers can receive pension benefits but not one-time benefits.

However, if during the waiting period, this employee continues to work, the time of paying social insurance premiums will be accumulated.

- Purpose: old age security for workers.

- For example:

1. Mr. K was downsized. At the time of retirement, Mr. K had paid social insurance premiums for 21.5 years and was 41 years old at that time.

+ So he will have a waiting time of 19 years (because t = 21.5 years > 20 years).

+ Note that if t < 20 years, the employee will receive a one-time benefit), t> 20 is not available.

one time benefit but have to wait until age

+ In this case, Mr. K will be able to pay voluntary social insurance to accumulate time.

or wait to retire (retirement waiting).

2. Ms. A is 47 years old, she has 21 years of social insurance contributions, she stopped working due to a serious illness, and only has 2 months to live. Can she request the social insurance to give her a one-time subsidy?

+ No subsidy because she has paid social insurance for > 20 years so she has to wait for retirement. This is an inappropriate point but must be accepted according to the Law.

3.5.2.2. Cases eligible for one-time subsidy:

a. If a worker:

- Have paid social insurance premiums for less than 20 years but have paid social insurance premiums for 15 years or more (15 years ≤ t < 20 years)

- And age eligibility.

 Employees have the right to pay voluntary social insurance premiums until they reach 20 years, but cannot pay in installments and must pay according to voluntary social insurance regulations.

b. If a worker:

- Age is not eligible.

- And the social insurance premium payment period is not enough (t < 20 years).

 Social insurance will close the book and give it to the employee to keep.

After 1 year if there is no employment relationship, the employee will have 2 options:

select:

+ If the employee requests, the Social Insurance agency will pay a one-time subsidy and after receiving the subsidy, if the employee continues to work and register for Social Insurance, the Social Insurance premium payment period will be re-established from the beginning;

+ If the employee does not request, the time will still be reserved and will be accumulated if the employee later has a labor relationship and participates in social insurance.

(Question: Why do we have to wait 1 year after settlement? Before 2003: no waiting, from 2003 - 2007: wait 0.5 year, from 2008 - present: wait 1 year. Reason: because retirement is the most important thing in social insurance because the elderly have risks such as: loneliness, not creating assets. Therefore, if we erase all the social insurance payment time to receive a one-time subsidy without

If we calculate the waiting period, the chance of receiving pension is almost zero because unemployment rate always exists and when unemployed workers do not generate income, they will request a one-time subsidy immediately. That is why the State has issued a regulation to wait 1 year, with the purpose of:

+ Ensure the pension rate of employees;

+ Avoid deficit in social insurance fund (due to receiving urgent benefits, it will not be paid in time).

+ Ensure social security, reduce social burden )

c. If an employee:

- Not enough time to pay social insurance premium (t < 20 years).

- And labor productivity loss ≥ 61%.

- And end the labor process.

 Social insurance will provide a one-time subsidy to this employee.

d. If an employee:

- Legally settle abroad.

 Social insurance will also provide a one-time subsidy to this employee.

One-time subsidy for (a,b,c,d):

+ One-time subsidy level: for every 1 year of paying social insurance premiums, you will receive 1.5 x L BQCCĐ BHXH

+ Calculate odd months:

≤ 2 months: not counting 3 months ≤ Time ≤ 6 months: counting 0.5 years

> 6 months: count as 1 year

+ Example: Ms. H quits her job and has 13 years and 5 months of social insurance premium payment. L BQCCĐBHXH = 2,500,000 VND. Calculate the one-time benefit. Knowing that Ms. H does not have any continuing labor relationship after quitting her job.

t = 13 n 5 th  calculate 13.5 n

One-time allowance = 13.5 x 1.5 x L BQCCĐ BHXH

= 13.5 x 1.5 x 2,500,000

= 50,625,000 VND

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SECTION OF SOCIAL INSURANCE EXERCISES - RETIREMENT POLICY - C.III

Lesson 1:Mr. X retired in early September 2009, at that time he was 58 years old and had 27 years and 2 months of social insurance contributions. Knowing:

- He lost 61% of his labor force.

- His salary evolution in the final stage before retirement was as follows:

+ From April 2002 to July 2005: salary according to coefficient 3.99

+ From August 2005 to July 2008: salary according to coefficient 4.32

+ From August 2008 until retirement: receive salary with coefficient 4.65

Calculate Mr. X's pension?

Instruct:

Considering retirement conditions:

+ Mr. X is 58 years old.

+ Have 27 years of social insurance payment.

+ Loss of labor capacity 61%.

According to the Social Insurance Law, Mr. X is eligible for retirement.

Pension = Pension = rx Social Insurance Fund

1. Calculate r:

t = 27 n 2 th  calculate 27 years.

Every 15 years of social insurance payment  45%. (27 – 15) = 12 years x 2%  24%.

Total = 45 + 24 = 69%

- Mr. X retired early so he has to accept a low pension.

- Mr. X came back first: 60 – 58 = 2 years.

Deducted rate: 2 years x 1% = 2%.

So Mr. X's pension rate is r = 69% - 2% = 67%.