New adjustments on the level of retirement pensions, social insurance allowances, and monthly allowances in Viet Nam Social Insurance
Social insurance is an essential policy that guarantees to fully or partially offset a participant’s income in case of arising risks. 2014 Viet Nam Law on Social Insurance has regulations on ensuring social insurance based on some main regimes: Sickness, Maternity, Labor accident and occupational disease, Retirement, and Survivorship allowance. Decree No. 108/2021/ND-CP, dated December 07, 2021, has new regulations on monthly allowances in “Labor accident and occupational disease Regimes” and in retirement pension, social insurance allowances in “Retirement Regimes”. Let’s find out new adjustments with Lawyer X in this article!
Legal grounds
Viet Nam Law on Social Insurance
Decree No. 108/2021/ND-CP
What are retirement pensions, social insurance allowances, and monthly allowances?
*Retirement pensions & Social insurance allowances
Pensions are expenses in Retirement Regimes provided to employees who are retired and satisfied certain conditions prescribed by law and have paid social insurance premiums for a minimum number of years identified by law.
Social insurance allowances are money in Retirement regimes given to employees to offset their income due to their risks or loss.
*Monthly allowances
Monthly allowances are expenses in “Labor accident and occupational disease Regimes” given to employees when they suffer a working capacity decrease of a certain level prescribed by law.
The level of pension, social insurance allowances, and monthly allowances according to the 2014 Viet Nam Law on Social Insurance
*Retirement pensions
From January 1, 2016 to January 1, 2018, the monthly pension of employees who fully satisfy the conditions by Law must equal 45% of the average monthly salary on which social insurance premiums are based, corresponding to 15 years of social insurance premium payment, which shall be added with 2%, for men, or 3%, for women, for each additional year of social insurance premium payment, but must not exceed 75%. 2.
Since January 1, 2018, the monthly pension of employees who fully satisfy the conditions by Law will equal 45% of the average monthly salary on which social insurance premiums are based, and correspond to the following period of social insurance premium payment:
– For male employees who retire in 2018, 2019, 2020 and 2021 and since 2022, it is 16 years, 17 years, 18 years, 19 years and 20 years, respectively;
– For female employees who retire since 2018, it is 15 years; For employees defined at Points a and b of this Clause, the pension rate shall be added with 2% for each additional year of social insurance premium payment, but must not exceed 75%
*Monthly allowances
Employees suffering a working capacity decrease of 31% or more are entitled to a monthly allowance.
The monthly allowance levels are specified as follows:
– For employees suffering a 31% working capacity decrease, the monthly allowance must equal 30% of the basic salary, which shall be added with 2% of the basic salary for each additional 1% working capacity decrease;
– In addition to the allowance level specified at Point a of this Clause, employees are entitled to receive every month an additional allowance calculated based on the period of social insurance premium payment, which equals half of the salary of the month preceding the leave taken for treatment on which social insurance premiums are based, for a period of social insurance premium payment of one year or less, and shall then be added with 0.3% of the salary of the month preceding the leave taken for treatment on which social insurance premiums are based, for each additional year of social insurance premium payment
The new adjustments on the level of pension, social insurance allowances, and monthly allowances according to Decree No. 108/2021/ND-CP
As of January 01, 2022, the amount of retirement pensions, social insurance allowances and monthly benefits payable to the persons prescribed increases by 7.4% compared to the amount of December 2021.
As of January 01, 2022, for the persons specified in Clause 2 Article 1 of Decree No. 108/2021/ND-CP , the specific adjustment is as follows: those whose retirement pension, social insurance allowance or monthly allowance is VND 2,300,000 or below will receive an additional VND 200,000 each per month, those whose retirement pension, social insurance allowance or monthly allowance is from VND 2,300,000 to less than VND 2,500,000 will receive an retirement pension, social insurance allowance or monthly allowance to make their total VND 2,500,000 each per month.
The amount of retirement pensions, social insurance allowances and monthly benefits adjusted as prescribed in this Article shall serve as the basis for the next adjustments to the retirement pensions, social insurance allowances and monthly benefits.
*Funding sources
Sources of funding for adjustments to retirement pensions, social insurance allowances and monthly benefits for the persons prescribed in Article 1 of Decree No. 108/2021/ND-CP are prescribed as follows:
– The state budget pays the retirement pensions, social insurance benefits and monthly benefits to the beneficiaries of social insurance before October 1, 1995; those who are on monthly allowances according to Decision No. 91/2000/QD-TTg dated August 4, 2000 and Decision No. 613/QD-TTg dated May 6, 2010 of the Prime Minister and those prescribed in Points d, dd, e and g Clause 1 Article 1 hereof; those who are on retirement pensions prescribed in Decree No. 159/2006/ND-CP dated December 28, 2006, Decree No. 11/2011/ND-CP dated January 30, 2011 and Decree No. 23/2012/ND-CP dated April 3, 2012 of the Government.
– The Social Insurance Fund pays the retirement pensions, social insurance benefits and monthly benefits to the beneficiaries of social insurance from October 1, 1995 onwards, including those who are on retirement pensions and monthly allowances as prescribed in Decree No. 92/2009/ND-CP dated October 22, 2009, Decree No. 34/2019/ND-CP dated April 24, 2019, Decree No. 121/2003/ND-CP dated October 21, 2003 and Decree No. 09/1998/ND-CP dated January 23, 1998 of the Government.
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Frequently asked questions
In general, the monthly pension of employees who fully satisfy the conditions by Law must equal 45% of the average monthly salary on which social insurance premiums are based.
Employees suffering a working capacity decrease of 31% or more are entitled to a monthly allowance.
As of January 01, 2022, the amount of retirement pensions, social insurance allowances and monthly benefits payable to the persons prescribed increases by 7.4% compared to the amount of December 2021.
Conclusion: So the above is New adjustments on the level of retirement pensions, social insurance allowances, and monthly allowances in Viet Nam Social Insurance. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
