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The National Assembly continues to discuss two options for lump sum withdrawal of social insurance, but the Standing Committee of the National Assembly considers this a complex issue directly affecting the rights of workers. Therefore, proposals need to be thoroughly discussed to select the appropriate option.
On May 27, the National Assembly dedicated the entire day to discuss some remaining contentious issues of the draft Law on Social Insurance (amended). Regarding the conditions for lump sum social insurance withdrawal, the Standing Committee of the National Assembly presented two options.
The first option is to classify two groups of workers to address lump sum social insurance withdrawal. Those who participated before the effective date of the amended Social Insurance Law (expected from July 1, 2025) and have worked for at least 12 months and have the need can withdraw. Those who start working and join the system after July 1, 2025, will not be allowed to withdraw lump sum social insurance, except as regulated.
The second option is that workers settle 50% of the total contribution into the Retirement and Survivorship Fund, while the remaining portion is reserved in the system for future benefits. This policy applies to workers who have contributed to social insurance for less than 20 years and, after 12 months, are not mandatory or voluntary participants in the compulsory area and want to withdraw at once.
The Standing Committee of the National Assembly noted that “both proposals submitted by the Government are not optimal,” as they do not thoroughly solve the issue of lump sum social insurance withdrawal and create a high consensus. However, after considering, the Standing Committee of the National Assembly agreed to support the first option because it ensures the inheritance of current regulations, does not disrupt the participation of about 18 million people in social insurance.
This option is compatible with international standards for social insurance and reduces the phenomenon of workers withdrawing social insurance multiple times in the past. In the future, new participants will no longer have the opportunity to withdraw social insurance at once, thereby increasing the number of participants in the social insurance system to accumulate benefits and reduce the burden on society and the budget, thereby achieving social security goals.
Listening to feedback from the public, many opinions also suggest that option 1 is more optimal and easier to accept, without creating long-term consequences or reverse effects, pushing workers further away from the social insurance system.
Option 2, which allows for the withdrawal of a maximum of 50% of the contributed amount, is likely to cause public dissatisfaction and may lead to the unintended consequence of a rush of people withdrawing social insurance once before the new law takes effect.
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