This provision does not ensure fairness in determining the level of benefits among beneficiaries and shows preferential treatment in the State sector.
Another limitation in the regulation of the formula for calculating monthly pension benefits is that the determination of the additional benefit level for each year of social insurance contribution is different between male and female workers. The monthly pension benefit level for employees is calculated at 45% for 15 years of social insurance contribution, then for each additional year of social insurance contribution, women are added 3% and men are added 2%, until reaching the maximum benefit level of 75% of the average monthly salary of social insurance contribution. The regulation of the additional level of 2% for male workers and 3% for female workers is unfounded, the application in practice shows that this calculation method creates unfairness, because the same contribution level but the benefit rate is not the same. Many opinions say that it is unfair in the use of the social insurance fund when the regulation of the benefit level for female workers is higher than that of male workers when they contribute labor and contribute insurance for the same period of time.
The current pension level is still low compared to the living needs of retirees: The salary used as the basis for social insurance contributions is currently much lower than the actual income of employees. That leads to a situation where although the percentage of pension benefits is quite high (up to 75%), the pension level of retirees is still low compared to the needs of life, which also puts great pressure on the social insurance fund in adjusting pensions. This is quite clear for employees who receive salaries and pay social insurance according to the salary regime decided by the employer: because the salary used as the basis for social insurance contributions is the salary stated in the labor contract, when signing a labor contract with an employee, enterprises often agree that the salary stated in the labor contract is the basic part.
The basic salary is higher than the prescribed regional minimum wage, the rest are allowances and subsidies to avoid paying social insurance.
e . Pension system
Maybe you are interested!
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Current Status of Compulsory Social Insurance and Retirement Law -
Current status of voluntary social insurance participation of workers in the informal sector: Case study of Tay Ho district, Hanoi city - 2 -
Current voluntary social insurance participation of workers in Doan Hung district, Phu Tho province - 15 -
Sick leave regime in current Vietnam Social Insurance Law - 10 -
Regulations of Vietnamese Law on Voluntary Social Insurance
The pension system is
provisions in the Law
Social insurance from Article 63 to Article 68,
Regulations on allowances: funeral allowance, death allowance for relatives of workers . According to current regulations, when a person participating in social insurance or receiving a pension dies, the person in charge of the funeral will receive a funeral allowance (equal to 10 months of the common minimum wage), relatives who are eligible will receive a monthly death allowance or a one-time death allowance. Current law
It is completely reasonable to expand the scope of beneficiaries of monthly pensions to relatives of workers who have not yet reached working age but have lost 81% or more of their working capacity and are still eligible for monthly benefits. In particular, according to legal regulations, the above relatives whose income is lower than the general minimum wage are still eligible for benefits.
Monthly pension. Regulations on pension regime in the past have ensured the rights of employees participating in social insurance and their relatives when the employee dies.
However, according to the provisions of the Law on Social Insurance, there is still a difference in the level.
The difference between the lump sum benefit and the monthly benefit creates inequality among beneficiaries. The monthly benefit is calculated based on the general minimum wage, while the lump sum benefit is calculated based on the monthly salary and wages paid for social insurance.
NLĐ. Thuc
There are many cases
When a worker dies, he leaves few relatives.
Eligibility for monthly benefits or remaining benefit period is low, causing the difference between the total monthly benefit amount being much lower than the lump sum benefit, leading to incorrect declaration to receive the lump sum benefit.
The monthly allowance for a relative is 50% of the general minimum wage, in special cases it is increased to 70% of the general minimum wage, the maximum number of relatives receiving allowance is not more than four people, the current regulations will cause disadvantages for those who have high contribution levels but only one or two relatives are eligible for allowance. If there are two relatives eligible for allowance, the total allowance of the two relatives will only be equal to the general minimum wage. In particular, the law has not yet prescribed a ceiling on the total amount of allowance for relatives to receive. Because the total monthly allowance for relatives can be equal to or greater than the monthly salary or wages of the employee paying social insurance while working or the monthly salary or allowance of the person who was on leave before death. This is not consistent with the principles of social insurance. Meanwhile, in most countries around the world, salary is often used as the basis for social insurance contributions, as the basis for calculating and controlling the benefit level at a rate of about 70% to 80% of the average salary of employees. This calculation ensures the purpose of compensating for employees' income and benefits.
2.1.2. Current status of voluntary social insurance legal regulations
2.1.2.1. Subjects of voluntary social insurance
The voluntary social insurance policy has created opportunities for a large number of employees who are not subject to compulsory social insurance (employees with contracts of less than 3 months, self-employed workers, etc.) to participate in social insurance to enjoy retirement and death benefits. The voluntary social insurance policy with the mechanism of linking compulsory social insurance and voluntary social insurance has created opportunities for employees who have participated in compulsory social insurance and have reached retirement age but have not paid social insurance for 20 years (still lacking a maximum of 5 years of social insurance) to continue to pay voluntary social insurance for the remaining years to enjoy monthly pension benefits. The above policy of voluntary social insurance has attracted a large number of employees.
have participated in compulsory social insurance and then continue to participate in voluntary social insurance (according to statistics, currently over 70% of people participating in voluntary social insurance have previously participated in compulsory social insurance).
The regulations on voluntary social insurance in our country's law have opened up opportunities for employees who have not participated in labor relations or participated in labor relations for less than 3 months to participate in a type of voluntary social insurance, ensuring retirement and death benefits when they retire. The regulations on voluntary social insurance contribution rates have taken into account the income of employees as well as their ability and desire to participate: with a contribution rate of 16% (from 2010, the contribution rate will increase every 2 years until reaching a contribution rate of 22%) of the income level chosen as the basis for social insurance contribution. The law creates conditions for employees to choose the income level as the basis for social insurance contribution. The above regulations will mobilize many participants, create financial capacity for the insurance fund and be consistent with the nature of voluntary social insurance.
2.1.2.2. Voluntary social insurance regime
In fact, the voluntary social insurance type has appeared regulations that are not suitable to the characteristics of the subjects participating in voluntary social insurance and the socio-economic reality, in which the regulations on voluntary social insurance subsidy regimes according to the current laws of our country are still not many. Meanwhile, the situation of occupational accidents and diseases is happening more and more, the regulation of two subsidy regimes in the voluntary social insurance type has somewhat limited the subjects participating.
a. Retirement regime
To receive monthly pension, employees must ensure that they have paid social insurance for 20 years and reach the age of 60 for men and 55 for women. In case they are of age but are less than 5 years short of the prescribed period, they can continue to pay until they reach 20 years.
However, the regulations on conditions for receiving pensions in the voluntary social insurance regime are still unreasonable, because in reality, employees who participate in voluntary social insurance for the first time or employees who have participated in compulsory social insurance and now switch to voluntary social insurance are mostly at the age of 40 for women and 45 for men, until the time they receive their pension, they are over the age prescribed by law. In addition, in the case where a compulsory social insurance participant has worked for 20 years but is not old enough to receive a pension, and now pays voluntary social insurance at once to cover the remaining years; however, they have to wait until they are old enough to receive their pension, the above regulations do not create attraction for participants.
b. Death benefit
When employees participating in voluntary social insurance die, their relatives will receive funeral benefits and one-time death benefits. However, the regulation on conditions for receiving funeral benefits for employees participating in voluntary social insurance is that they must ensure a minimum participation period of 5 years in voluntary social insurance or be receiving a pension.
When a voluntary social insurance employee dies, his or her relatives will only receive a one-time death benefit, and the calculation depends on the number of years of insurance contributions or the number of years of benefits received, and there is no minimum level. In order to ensure the rights of those who have participated in compulsory social insurance for 15 years, and then participated in voluntary social insurance, the death benefit will still be applied according to the regulations in compulsory social insurance.
The law has stipulated conditions for enjoying retirement and death benefits that are relatively consistent with compulsory social insurance in order to create connectivity between the two types of social insurance.
According to the provisions of Decree 121/1998/ND-CP replacing Decree 09/1998/ND-CP, there are 4 positions of commune and ward officials recognized as
civil servants, with accompanying regimes. There will be a group of commune and ward cadres according to Decree 09/1998/ND-CP who are not recognized as civil servants. Their social insurance participation period will not be reserved or added when switching to voluntary social insurance, but will only be settled with a one-time regime. In fact, the subjects according to Decree 09/1998/ND-CP who are of working age and continue to work in the commune are very large. They wish to participate in voluntary social insurance to receive pensions but are not allowed to add up their previous social insurance payment period, so there will be many people who have paid social insurance for more than 10 years and are not eligible to participate in voluntary social insurance 37 .
2.1.3. Current status of legal regulations on unemployment insurance
Unemployment insurance was first stipulated in the Social Insurance Law of 2006 and took effect from January 1, 2009. The regulations on unemployment insurance have been put into practice, contributing to supporting employees to overcome difficulties, find new jobs, and stabilize their lives.
The current scope of application of unemployment insurance is still relatively limited. The unemployment insurance policy in our country only applies to employees with contracts from 12 months to 36 months and indefinite-term contracts at units employing 10 or more employees; employers employing 10 or more employees, including the above-mentioned employees. The current regulations on the scope of application of unemployment insurance are quite narrow, not yet applied to employees working under contracts of less than 12 months; employees working under contracts from 12 months to 36 months and indefinite-term contracts at units employing less than 10 employees; Vietnamese employees working abroad. Thus, the scope of unemployment insurance cannot cover most employees with labor relations, and has ignored those with unstable jobs, who are more likely to fall into unemployment than other employees 49 .
Unemployment benefits are equal to 60% of the monthly salary used as the basis for insurance contributions for the 6 consecutive months prior to unemployment. In addition to the allowance
In addition to unemployment benefits, unemployed people are also entitled to other benefits including vocational training support, job search support and health insurance. The level of vocational training support is paid at the cost of short-term vocational training for a maximum period of no more than 6 months. In general, the regulations on unemployment benefits according to our country's regulations are relatively beneficial for participants. However, according to the provisions of our country's law, the unemployment benefit period is 3, 6, 9, 12 months depending on the employee's contribution period to the unemployment insurance fund. The current regulations on the above benefit period in our country's law are long, creating a mentality of dependence and not actively looking for jobs for employees.
At the same time, according to regulations, to enjoy unemployment insurance benefits, employees must register for unemployment within 7 days and submit valid documents to the Job Center within 15 days from the date of registration. If this deadline is exceeded, employees will be denied unemployment insurance benefits. The above deadline has created pressure for employees and labor agencies, social insurance agencies, which is a relatively short time to carry out unemployment insurance procedures.
According to the rules
law
social insurance
as for the judges
unemployment benefits
in cases where there is
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military service will be
One-time grant equal to the value of the total
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unemployment benefits
the rest is
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If you work, you will not receive unemployment benefits anymore.
2.1.4. Current status of regulations on social insurance funds
The compulsory social insurance fund is formed from contributions from employees and employers and is used to pay benefits for illness, maternity, work-related accidents and occupational diseases, retirement, and death for employees and their relatives. The unemployment insurance fund is
Separated into an independent fund from the compulsory social insurance fund. The voluntary social insurance fund is formed by contributions from employees.
The compulsory social insurance fund is divided into three types of funds: the sickness and maternity fund, the occupational accident and disease fund, and the retirement and death fund; in which employees are responsible for contributing to the retirement and death fund at a rate of 5% (from 2010, the contribution rate will increase by 1% every two years until reaching the contribution rate of 8%); employers are obliged to contribute to three types of funds: of which 3% will go to the sickness and maternity fund, 1% to the occupational accident and disease fund, and 11% to the retirement and death fund (from 2010, the contribution rate will increase by 1% every two years until reaching the contribution rate of 14%). The regulation on the contribution rate and financial allocation of the compulsory social insurance fund under current law is a major reform in social insurance law.
Separating the occupational accident and occupational disease fund and determining the 1% contribution rate of the employer to this fund is a new point in the current law. Previously, the allocation of the social insurance fund was divided into two types of short-term and long-term insurance funds, in which occupational accident and occupational disease benefits were regulated to be spent in the short-term fund. This is unreasonable because occupational accident and occupational disease benefits are classified as both short-term (for cases receiving one-time benefits) and long-term (monthly benefits); at the same time, implementation practice shows that the total expenditure for this regime accounts for a small proportion of the total short-term insurance expenditure, so determining the 1% contribution rate of the employer is appropriate.
According to the law, for employees who implement the salary regime set by the employer, the salary and wages used as the basis for social insurance contributions are the salaries stated in the labor contract. This can easily lead to a situation where in reality, employees and employers sign contracts in which the salary is stated to be lower than the actual salary paid, which will lead to a low social insurance payment amount, affecting the social insurance benefits for the subjects after they retire. Moreover, the regulation of the social insurance contribution ceiling equal to 20 months of the salary