New changes in the policy on social insurance in 2022 in Vietnam, Change in the retirement age, Change the calculation of pension of male employees, One-time social insurance for foreign workers, One-time social insurance

New changes in the policy on social insurance in 2022 in Vietnam

In 2022, the regulations of social insurance in Vietnam will change dramatically, from increasing the retirement age to the adjustment of social insurance contributions of enterprises and employees, etc. In this article, we will analyze in detail all the new changes in the policy on social insurance in 2022 in Vietnam.

Change in the retirement age 

According to the regulations on retirement age, Vietnam will experience a heavy change in the retirement age for both men and women, starting from 2021, and is expected to end in 2035.

By 2022, the retirement age of employees working in normal conditions will change as follows:

  • Male employees: From full 60 years old and 06 months (Increasing 3 months compared to 2021).
  • Female employees: From full 55 years old 08 months (Increase 04 months compared to 2021).

Read the full article on the changes in retirement age here

Change the calculation of pension of male employees

The way to calculate pensions for male employees still uses the previous formula. However, the method of determining the pension enjoyment rate for male employees will be adjusted.

According to the regulations specified in Article 56 of the Law on Social Insurance 2014, male employees who retire in 2022 must pay social insurance contributions for full 20 years to receive the rate of 45% of the average monthly salary on which social insurance premiums are based. Meanwhile, in 2021, male employees only need to pay social insurance for 19 years to enjoy the 45% rate.

With this new calculation, male employees who retire in 2022 and pay the full 20 years of social insurance will only enjoy a pension equal to 45% of the average monthly salary on which social insurance premiums are based. In addition, if he wants to enjoy the maximum rate of 75%, the male employee must pay social insurance contributions for 35 years or more (in 2021, only 34 years or more will be required).

Adjustment of social insurance contributions of enterprises and employees

In order to deal with the heavy impacts of the Covid-19 pandemic, the Government of Vietnam has imposed many support policies to help the normal citizen, workers, employees, and businesses affected by this pandemic.

New changes in the policy on social insurance in 2022 in Vietnam
New changes in the policy on social insurance in 2022 in Vietnam

One of the most important Resolutions and Decrees is Resolution 68, amended by Resolution 126 and Resolution 116.

With the application of support policies, the social insurance premium rate will continuously change in 2022.

One-time social insurance for foreign workers

Pursuant to the provisions of Clause 1, Article 2 and Clause 6, Article 9 of Decree 143/2018/ND-CP as follows:

“Article 2. Subjects of application

Employees being foreign citizens working in Vietnam are eligible to participate in compulsory social insurance when they have a work permit or a practice certificate or a practice license issued by a Vietnamese competent authority and have an indefinite-term labor contract or a definite-term labor contract of full 01 years or more with an employer in Vietnam.”

“Article 9. Retirement regime

Cases of one-time social insurance benefits

The employees specified in Clause 1, Article 2 of this Decree, upon request, are entitled to one-time social insurance benefits if they fall into one of the following cases:

a) Having reached the retirement age as prescribed in Clause 1 of this Article but have not had full 20 years of paying social insurance premiums;

b) The person is suffering from one of the life-threatening diseases such as cancer, polio, cirrhosis of the liver ascites, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS, and other diseases as prescribed by the Ministry of Health;

c) The employee is eligible for pension under the provisions of Clause 1 of this Article but does not continue to reside in Vietnam;

d) The employee terminates the labor contract or the work permit, practice certificate or practice permit expires without being renewed.”

Accordingly, the foreign worker will receive one-time insurance if he/she satisfied one of the above conditions. 

However, Article 17 of Decree 143/2018/ND-CP stipulates as follows:

“Article 17. Implementation effect

The regimes specified in Articles 9 and 10 of this Decree take effect from January 1, 2022.”

Thus, when foreign workers want to withdraw their one-time social insurance, they will have to wait until January 1, 2022.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

    CONTACT

    Your infomation

    Question


    ***Other service of ASL LAW – full service Vietnam law firm ***

    Retainer service to enterprises

     

    International trademark registration

    Oversea investment consultancy for Vietnamese enterprises

     

    Patent in Vietnam

    PCT Patent in Vietnam

     

    PCT Patent Vietnam Entry

    Intellectual property services (Vietnam IP Firm)

     

    Vietnam Patent Agent

    Trademark in Vietnam

     

    Vietnam Patent Firm

    Vietnam Trademark Agent

     

    Patent translation in Vietnam

    How to register trademark in Vietnam

     

    Vietnam Patent Translation Agent

    Copyright in Vietnam

     

    Vietnam IP Firm

    Vietnam Trademark

     

    Vietnam IP Agent

    Notes to company formation in Vietnam

     

    M&A

    How to open company in Vietnam

     

    Banking & financial services

    Open representative office in Vietnam

     

    Contract consultancy

    Establish company in Vietnam

     

    Employment and labor

    Corporate services in Vietnam

     

    Litigation and dispute resolution

    Vietnam Law Firm

     

    Franchise in Vietnam

    Vietnam Antidumping Law Firm

     

    Vietnam Franchise registration

    Vietnam countervailing law firm

     

    Vietnam Business Law Firm

    Vietnam Real estate law firm

     

    Vietnam construction law firm

    Law firm in Hanoi

     

    Law Firm in Ho Chi Minh

     

     

     

     

     

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    +84982682122