Social insurance (SI) is a vital aspect of employment that every worker needs to be well-informed about. Thus, entailing a specific portion of your monthly income and is compulsory from the day you sign your employment contract. In this article, we’ll delve into the essential details of it.
1. The SI Contribution Level in 2023
SI includes two types: voluntary and compulsory. In which:
The contribution level for compulsory SI in 2023 remains unchanged and is specified as follows:
- For Vietnamese laborers:
- For foreign laborers:
* The specific level of voluntary ones is as follows:
According to Viet Nam regulations, the amount contribution level is calculated based on the income of the laborer.
• The monthly contribution level is equal to 22% of the monthly income of the participant.
• The monthly income of the participant in voluntary social insurance must be at least equal to the poverty line in rural areas according to the regulations of the Prime Minister and at most equal to 20 times the basic wage level at the time of contribution.
2. Why withdrawing SI at the end of the year is not recommended?
Here are some reasons why:
(1) The amount of one-time social insurance withdrawal at the end of the year is less than the amount received in the following year.
Every year, the Ministry of Labor, War Invalids and Social Affairs issues new decrees regulating the adjustment of salary, monthly salary (also known as slippage coefficient). The slippage coefficient for the following year is higher than the previous year, resulting in a higher amount of social insurance received in the following year.
(2) The processing time for documents and the disbursement of social insurance benefits in a lump sum often takes longer than prescribed.
According to Decision 166/QD-BHXH2019, the time for processing entitlements within a maximum of 5 working days from the date the laborer submits a complete set of documents for one-time social insurance to the social insurance agency.
In reality, laborers often do not receive their one-time insurance benefits on time at the end of the year. In some cases, laborers have to wait for a whole month to receive their one-time social insurance benefits. Due to the approaching Tet holiday, the demand for spending increases, leading to a higher number of people withdrawing social insurance benefits, thereby causing overload in the agencies.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
