Decree 158 of the Government, effective from July 1, details and guides the implementation of several articles of the Social Insurance Law on compulsory social insurance, clarifying the monthly allowance regime for those who do not meet the conditions to enjoy retirement benefits.
Accordingly, the regime for employees who do not meet the conditions to enjoy retirement benefits and are not old enough to receive social retirement allowances is implemented according to the regulations in Articles 23 and 24 of the Social Insurance Law and is detailed as follows:
Specifically, according to Decree 158, the subjects of application are employees as prescribed in Clause 1, Article 2 of the Law on Social Insurance, who are of retirement age and have social insurance payment history but do not meet the conditions to enjoy retirement benefits as prescribed and are not eligible for social retirement allowances.
as prescribed in Article 21 of the Law on Social Insurance.
The conditions for enjoyment are that the above-mentioned subjects do not enjoy social insurance once, do not reserve social insurance payment time, and request to enjoy the monthly allowance.
From July 1st, those who do not meet the conditions to enjoy retirement benefits will be entitled to a monthly allowance. Illustrative image.
The period of enjoyment of the monthly allowance is determined on the basis of the employee’s payment time and basis of social insurance payment.
The period of enjoyment of the monthly allowance shall be determined within the period from the month the employee has a written request when he/she is old enough to retire until he/she is old enough to enjoy the social retirement allowance according to the law at the time of settlement of the regime.
In case the period of enjoyment of the monthly allowance exceeds the time until the employee is old enough to enjoy the social retirement allowance, the employee shall be entitled to enjoy the monthly allowance at a higher level according to the regulations in Clause 2, Article 24 of this Decree.
In case the period of enjoyment of the monthly allowance is not enough for the employee to enjoy the monthly allowance until he/she is old enough to enjoy the social retirement allowance, if the employee wishes, he/she shall pay once for the remaining part to enjoy until he/she is old enough to enjoy the social retirement allowance…
Regarding the level of monthly allowance, according to Decree 158, the monthly allowance level is calculated according to the level of social retirement allowance prescribed in Clause 1, Article 22 of the Law on Social Insurance at the time of settlement of the allowance.
Clause 1, Article 22 of the Law on Social Insurance stipulates that the level of social retirement allowance is prescribed by the Government in accordance with the socio-economic development conditions and the state budget capacity of each period. Every 3 years, the Government reviews and considers adjusting the level of social retirement allowance.
Depending on socio-economic conditions, budget balance, and mobilization of social resources, the provincial People’s Committees shall submit to the Provincial People’s Councils to decide to support those enjoying social retirement allowances.
Also according to Decree 158, in case the period of enjoyment of the monthly allowance exceeds the time until the employee is old enough to enjoy the social retirement allowance, the employee shall be entitled to enjoy the monthly allowance at a higher level than the social retirement allowance at the time of settlement.
The monthly allowance level shall be adjusted when the Government adjusts retirement benefits as prescribed in Article 67 of the Law on Social Insurance.
The employee’s written request for the monthly allowance shall be made according to the form issued by Vietnam Social Insurance.
