Voluntary Social Insurance Participants
According to the provisions in Clause 4, Article 2 of the Law on Social Insurance 2014 and Article 8 of Decision 595 / QD-BHXH on participants in voluntary social insurance, Vietnamese citizens from 15 years of age and older who are not subject to compulsory social insurance can participate in voluntary social insurance.
Specifically, the participants in voluntary insurance are regulated as follows:
– Workers working under a fixed-term labor contract of less than 03 months before 01/01/2018; workers working under a fixed-term labor contract of less than 01 month from 01/01/2018 onwards;
– Non-professional workers in hamlets, villages, communes, neighborhoods;
– Household domestic workers;
– Participants in production, business, and non-salaried service;
– Communal workers no receiving salary or wages working at cooperatives, joint cooperatives;
– Farmers and self-employed workers;
– Workers who meet the age requirements but not the length of time to receive pension;
– Other participants.
How many years of voluntary social insurance contributions are required to receive a pension?
Article 73 of the Law on Social Insurance 2014 stipulates that workers are entitled to a pension when they meet the following conditions:
– Reaching the retirement age as prescribed in Clause 2, Article 169 of the Labor Code;
– Having contributed to social insurance for at least 20 years.
In addition, workers who meet the age requirements specified in point a of Clause 1 of this Article but have not contributed to social insurance for at least 20 years are allowed to continue making contributions until they reach 20 years to be eligible for a pension.
What is the minimum amount of voluntary social insurance contributions?
Article 87 of the Law on Social Insurance 2014, guided by Decree 134/2015 / ND-CP, stipulates the amount of contributions for voluntary social insurance as follows:
Monthly contributions of workers participating in voluntary social insurance are 22% of their monthly income, which is chosen by the workers themselves.
Based on the socio-economic development conditions, the state budget’s capacity to determine the beneficiaries, the level of support, and the timing of support for workers participating in voluntary social insurance payments.
Therefore, the amount of voluntary social insurance contributions by workers is calculated as follows:
Monthly contributions = 22% x chosen income of workers – State support for voluntary social insurance participants
In which:
– The minimum income chosen for voluntary social insurance contributions is equal to the poverty standard for rural areas and the maximum income chosen is equal to 20 times the basic salary level;
– State support for voluntary social insurance participants is stipulated in Article 14 of Decree 134/2015 / ND-CP as follows:
The state support for voluntary social insurance contributions is calculated as a percentage of the monthly social insurance contributions according to the poverty standard in rural areas for a maximum of 10 years:
Specifically:
– Poor households: Support rate of 30%
– Near-poor households: Support rate of 25%
– Other cases: Support rate of 10%
As mentioned above, workers can choose the contribution income for voluntary social insurance, but they must ensure the minimum and maximum levels as prescribed.
Specifically, the minimum chosen income for insurance contributions is equal to the poverty standard for rural areas.
Currently, in 2024, the multidimensional poverty standard for income criteria in rural areas is stipulated in Article 3 of Decree 07/2021 / ND-CP as 1.5 million VND / person / month. Therefore, the minimum amount of voluntary social insurance contributions is 330,000 VND / month without deducting the amount of support.
