Consolidated Document number 5237/VBHN-BLDTBXH Decree detailing certain provisions of the Social Insurance Law on voluntary social insurance

MINISTRY OF LABOR - INVALIDS AND SOCIAL AFFAIRS -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 5237/VBHN-BLDTBX	Hanoi, December 13, 2018

 

DECREE

DETAILING CERTAIN PROVISIONS OF THE SOCIAL INSURANCE LAW ON VOLUNTARY SOCIAL INSURANCE

Decree No. 134/2015/ND-CP dated December 29, 2015 detailing certain provisions of the Social Insurance Law on voluntary social insurance, which took effect from February 15, 2016, was amended and supplemented by:

Decree No. 140/2018/ND-CP dated October 8, 2018 amending and supplementing several Decrees related to investment conditions and business procedures under the management of the Ministry of Labor, Invalids and Social Affairs, which took effect from October 8, 2018.

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Resolution No. 104/2023/QH15 dated November 10, 2023 of the National Assembly on the state budget estimate for 2024;

Pursuant to Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly regarding the implementation of the policy for one-time social insurance benefits for workers;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

The Government promulgates this Decree detailing certain provisions of the Social Insurance Law on voluntary social insurance.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details certain provisions of the Social Insurance Law on voluntary social insurance.

Article 2. Applicability

1. A person participating in voluntary social insurance is a Vietnamese citizen aged 15 years or older and not subject to mandatory social insurance according to Clause 4, Article 2 of the Social Insurance Law.

2. Agencies, organizations, and individuals related to voluntary social insurance.

Chapter II

REGIME OF VOLUNTARY SOCIAL INSURANCE

Section 1. PENSION REGIME

Article 3. Monthly pension amount

The monthly pension amount according to Article 74 of the Social Insurance Law is stipulated as follows:

1. The monthly pension amount is calculated by multiplying the percentage of the monthly pension benefit with the average monthly income contributed to social insurance.

2. The percentage of the monthly pension benefit is calculated as follows:

a) For those retiring from January 1, 2016 to before January 1, 2018, the percentage of the monthly pension benefit is calculated at 45% corresponding to 15 years of social insurance contributions, then adding 2% for men and 3% for women for each additional year of contribution; the maximum rate is 75%;

b) For women retiring from January 1, 2018 onwards, the percentage of the monthly pension benefit is calculated at 45% corresponding to 15 years of social insurance contributions, then adding 2% for each additional year of contribution; the maximum rate is 75%;

c) For men retiring from January 1, 2018 onwards, the percentage of the monthly pension benefit is calculated at 45% corresponding to the number of years of social insurance contributions according to the table below, then adding 2% for each additional year of contribution; the maximum rate is 75%:

Year of retirement	Number of years of social insurance contributions corresponding to a 45% pension benefit rate
2018	16 years
2019	17 years
2020	18 years
2021	19 years
From 2022 onwards	20 years

Article 4. Average monthly income contributed to social insurance

The average monthly income contributed to social insurance according to Article 79 of the Social Insurance Law is stipulated as follows:

1. The average monthly income contributed to social insurance is calculated by averaging the monthly incomes already contributed to social insurance over the entire period of contribution.

2. The monthly income already contributed to social insurance used as the basis for calculating the average monthly income contributed to social insurance as stipulated in Clause 1 of this Article shall be adjusted as follows:

a) The monthly income already contributed to social insurance after adjustment for each year is equal to the monthly income already contributed to social insurance for that year multiplied by the adjustment factor for the monthly income already contributed to social insurance for the corresponding year;

b) The adjustment factor for the monthly income already contributed to social insurance is calculated based on the average annual consumer price index published annually by the General Statistics Office and is determined by the following formula:

Adjustment factor for the monthly income already contributed to social insurance for year t	Average annual consumer price index of the immediately preceding year to the year when the participant enjoys social insurance under voluntary social insurance calculated with the base year 2008 as 100%
	Average annual consumer price index of year t calculated with the base year 2008 as 100%

Where:

- t: Any year during the adjustment period;

- The adjustment factor for the monthly income already contributed to social insurance for year t is rounded to two decimal places and the minimum value is 1 (one).

3. In cases where a participant in voluntary social insurance makes a lump sum payment for the remaining years as stipulated in Point e, Clause 1, Article 9 of this Decree, the average monthly income contributed to social insurance is calculated according to the provisions of Clause 1 and Clause 2 of this Article, wherein the monthly income already contributed to social insurance for the remaining years paid in a lump sum receives an adjustment factor of 1 (one).

4. Annually, the Ministry of Labor, Invalids and Social Affairs stipulates the adjustment factor for the monthly income already contributed to social insurance for participants in voluntary social insurance based on the provisions of Clause 2 of this Article and the average annual consumer price index published by the General Statistics Office.

Article 5. Retirement benefits for individuals who previously had mandatory social insurance contributions

The retirement benefit system for individuals who previously had mandatory social insurance contributions under Article 71 of the Social Insurance Law is stipulated as follows:

1. The period for enjoying retirement benefits is the total time of mandatory social insurance contributions and voluntary social insurance contributions, excluding the time already counted for one-time social insurance benefits.

2. Conditions for receiving pension

Individuals participating in voluntary social insurance will receive a pension when they meet one of the following conditions:

a) Individuals participating in voluntary social insurance have a period for enjoying retirement benefits of at least 20 years, then the age condition for receiving a pension is male at least 60 years old, female at least 55 years old, except for cases specified in Point b of this Clause;

b) In the case where individuals participating in voluntary social insurance have at least 20 years of mandatory social insurance contributions, the age condition for receiving a pension shall be implemented according to the provisions of Clauses 1, 2, and 4 of Article 54 and Article 55 of the Social Insurance Law;

c) Female workers who are full-time or part-time employees at communes, wards, or towns participating in mandatory social insurance, meeting the conditions for receiving a pension as stipulated in Clause 3 of Article 54 of the Social Insurance Law, and retaining their contribution time and continuing to participate in voluntary social insurance, may request a pension.

3. The monthly pension amount is calculated by multiplying the percentage of the monthly pension by the average monthly salary and income for social insurance contributions as stipulated in Clause 4 of this Article.

In the case where individuals participating in voluntary social insurance have at least 20 years of mandatory social insurance contributions, except for the subjects specified in Point i of Clause 1 of Article 2 of the Social Insurance Law and Point c of Clause 2 of this Article, the minimum monthly pension amount is equal to the basic wage at the time of receiving the pension.

4. The average monthly salary and income for social insurance contributions for calculating the pension and one-time allowance is calculated according to the following formula:

Average monthly salary and income for social insurance contributions	=	Average monthly salary for mandatory social insurance contributions	x	Total number of months of mandatory social insurance contributions			+	Total monthly income for voluntary social insurance contributions
		Total number of months of mandatory social insurance contributions			+	Total number of months of voluntary social insurance contributions

Where:

- The average monthly salary for mandatory social insurance contributions is implemented according to the provisions of Articles 62 and 63 of the Social Insurance Law.

- The total monthly income for voluntary social insurance contributions is the sum of the monthly income for voluntary social insurance contributions that have been adjusted according to the provisions of Clause 2 and Clause 3 of Article 4 of this Decree.

5. The one-time allowance upon retirement is calculated according to the provisions of Article 75 of the Social Insurance Law, with each year of social insurance contributions exceeding the number of years corresponding to a 75% pension rate being calculated as 0.5 months of the average monthly salary and income for social insurance contributions as stipulated in Clause 4 of this Article.

6. One-time social insurance benefits are implemented according to the provisions of Article 7 of this Decree. The level of one-time social insurance benefits is calculated based on the average monthly salary and income for social insurance contributions as stipulated in Clause 4 of this Article.

Article 6. Time of Pension Payment

1. The time of pension payment starts from the month immediately following the month when individuals participating in voluntary social insurance meet the conditions for receiving a pension as stipulated in Article 73 of the Social Insurance Law and Clause 2 of Article 5 of this Decree.

2. In the case where individuals participating in voluntary social insurance make a lump-sum payment for the remaining years as stipulated in Point e of Clause 1 of Article 9 of this Decree to meet the conditions for receiving a pension, the time of pension payment starts from the month immediately following the month of making the lump-sum payment.

Article 7. One-time social insurance

1. Individuals participating in voluntary social insurance shall enjoy one-time social insurance according to the provisions of Article 77 of the Social Insurance Law and Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing the policy for one-time social insurance benefits for workers.

2. The application dossier for one-time social insurance shall be implemented according to the provisions of Article 109 of the Social Insurance Law.

3. The settlement of one-time social insurance shall be carried out according to the provisions of Clause 3 and Clause 4 of Article 110 of the Social Insurance Law.

Section 2. FUNERAL BENEFITS REGIME

Article 8. Funeral benefits regime for relatives of individuals participating in voluntary social insurance who die after having compulsory social insurance contribution periods

The funeral benefits regime for relatives of individuals participating in voluntary social insurance who die or are declared dead by the court before having compulsory social insurance contribution periods shall be regulated as follows according to Article 71 of the Social Insurance Law:

1. The period for enjoying funeral benefits is the total time of compulsory social insurance contributions and voluntary social insurance contributions, excluding the time of compulsory social insurance contributions that have been enjoyed under one-time social insurance benefits.

2. The person responsible for burial shall receive a funeral allowance equal to ten times the minimum wage for the deceased or those declared dead in one of the following cases:

a) Individuals participating in voluntary social insurance with at least 12 months of compulsory social insurance contributions;

b) Individuals participating in voluntary social insurance with at least 60 months of funeral benefit calculation period;

c) Individuals participating in voluntary social insurance receiving monthly disability allowance and work-related illness benefits who have stopped working;

d) Individuals receiving pension.

3. In case individuals participating in voluntary social insurance die or are declared dead in one of the following situations, the relatives specified in Clause 2 of Article 67 of the Social Insurance Law shall receive monthly survivor's allowance according to the provisions of Article 68 of the Social Insurance Law:

a) Having at least 15 years of compulsory social insurance contributions but not yet enjoying one-time social insurance benefits;

b) Receiving monthly disability allowance and work-related illness benefits with a reduction in labor capacity of 61% or more;

c) Receiving pension with at least 15 years of compulsory social insurance contributions prior to retirement.

4. In case relatives fall within the scope of receiving monthly survivor's allowance according to Clause 3 of this Article and wish to receive a lump-sum survivor's allowance, they shall receive a lump-sum survivor's allowance according to the provisions of Clause 2 and Clause 3 of Article 81 of the Social Insurance Law, except in cases where children are under six years old, or spouses or children with a reduction in labor capacity of 81% or more.

5. In case individuals participating in voluntary social insurance die or are declared dead without relatives specified in Clause 6 of Article 3 of the Social Insurance Law, the determination of the person receiving a lump-sum survivor's allowance shall be carried out according to the provisions of the law on inheritance.

Chapter III

SOCIAL INSURANCE FUND

Article 9. Contribution methods

The contribution method for voluntary social insurance according to Clause 2 of Article 87 of the Social Insurance Law is regulated as follows:

1. Individuals participating in voluntary social insurance may choose one of the following contribution methods to contribute to the pension and funeral fund:

a) Monthly contributions;

b) Contributions every three months;

c) Contributions every six months;

d) Contributions annually;

đ) Contributions for multiple years ahead but not exceeding once every five years;

e) Contributions for the remaining years needed for individuals who meet the age requirement to receive a pension according to regulations but have less than 10 years (120 months) of social insurance contributions, thereby allowing them to contribute for the remaining 20 years to receive a pension.

2. In case individuals participating in social insurance have reached the retirement age according to regulations but still lack more than 10 years of social insurance contributions, if they wish to continue contributing voluntarily according to one of the methods specified in Points a, b, c, d and đ of Clause 1 of this Article until the remaining years of social insurance contributions do not exceed 10 years, they can then make a lump-sum contribution for the remaining years to receive a pension according to Point e of Clause 1 of this Article.

Article 10. Contribution Levels

The contribution levels for voluntary social insurance under Clause 1, Article 87 of the Social Insurance Law and according to the payment methods stipulated in Clause 1, Article 9 of this Decree are defined as follows:

1. The monthly contribution rate is 22% of the monthly income level chosen by the voluntary social insurance participant.

The minimum monthly income level chosen by the voluntary social insurance participant shall be equal to the poverty standard for rural households as prescribed by the Prime Minister, and the maximum shall be 20 times the base salary at the time of contribution.

2. The contribution level for every three months, six months, or twelve months is determined by multiplying the monthly contribution rate as specified in Clause 1 of this Article by 3 for the three-month payment method; by 6 for the six-month payment method; and by 12 for the twelve-month payment method.

3. The one-time contribution for multiple future years as provided in Point d, Clause 1, Article 9 of this Decree is calculated based on the total contributions of previous months, discounted according to the average monthly investment interest rate of the social insurance fund announced by the Vietnam Social Security of the year immediately preceding the year of contribution.

4. The one-time contribution for the remaining years as provided in Point e, Clause 1, Article 9 of this Decree is calculated based on the total contributions of the remaining months, applying the compounded interest rate equal to the average monthly investment interest rate of the social insurance fund announced by the Vietnam Social Security of the year immediately preceding the year of contribution.

5. In cases where voluntary social insurance participants have contributed according to the three-month, six-month, or twelve-month payment methods or have made a one-time contribution for multiple future years as stipulated in Clause 2 and 3 of this Article, and during that period, the Prime Minister adjusts the poverty standard for rural households, there is no need to adjust the difference in the amount already paid.

6. In cases where voluntary social insurance participants have contributed according to the three-month, six-month, or twelve-month payment methods or have made a one-time contribution for multiple future years as stipulated in Points b, c, d, and đ, Clause 1, Article 9 of this Decree, and during that period, they fall into one of the following situations, they will be entitled to a partial refund of the previously paid amount:

a) Ceasing to participate in voluntary social insurance and switching to mandatory social insurance;

b) Receiving a one-time social insurance benefit as stipulated in Article 7 of this Decree;

c) Being deceased or declared dead by a court.

The refund amount for voluntary social insurance participants in the cases specified in Points a and b of this Clause or for the dependents of workers in the case specified in Point c of this Clause is calculated based on the amount paid corresponding to the remaining time compared to the time of contribution under the aforementioned payment method and does not include state support contributions (if any).

Article 11. Changing Contribution Methods and Monthly Income Levels for Voluntary Social Insurance

Participants in voluntary social insurance may change their contribution methods or the monthly income level serving as the basis for voluntary social insurance contributions. The change in contribution method or the monthly income level serving as the basis for voluntary social insurance contributions must be implemented at least after completing the previously selected contribution method.

Article 12. Time of Payment

1. The time of payment for social insurance under the payment methods prescribed in Points a, b, c, and d Clause 1 Article 9 of this Decree shall be implemented as follows:

a) In the month for the monthly payment method;

b) Within three months for the payment method every three months;

c) Within the first four months for the payment method every six months;

d) Within the first seven months for the payment method every twelve months.

2. The time of payment for social insurance for cases of paying once for several subsequent years or paying once for the remaining years as prescribed in Points đ and e Clause 1 Article 9 of this Decree shall be carried out at the time of registering the payment method and the monthly income basis for payment.

3. If the voluntary social insurance participant fails to pay social insurance beyond the time stipulated in Clause 1 of this Article, it will be considered as temporarily suspending the voluntary social insurance payment. A person who has temporarily suspended the voluntary social insurance payment and wishes to continue must re-register the payment method and the monthly income basis for social insurance payment with the social insurance agency. If there is a desire to make up for the late payments, the amount to be paid will be calculated based on the total contribution amount of the late months, applying the compounded interest rate equal to the average investment return rate of the social insurance fund announced by the Vietnam Social Security of the preceding year.

Article 13. Procedures for Re-registering the Payment Method and Monthly Income Basis for Voluntary Social Insurance Contributions

1. Documents for re-registering the payment method and monthly income basis for voluntary social insurance contributions include:

a) Social insurance book;

b) Application form for social insurance participation.

2. Processing re-registration of the payment method and monthly income basis for voluntary social insurance contributions.

a) The voluntary social insurance participant submits the documents specified in Clause 1 of this Article to the social insurance agency;

b) The social insurance agency is responsible for processing within the day if all required documents are received as prescribed. If not processed, a written response must be provided with clear reasons.

Article 14. Support for Social Insurance Contributions for Voluntary Social Insurance Participants

1. Level of support and eligible recipients:

Voluntary social insurance participants are supported by the State with a percentage (%) of their monthly social insurance contributions based on the poverty standard level in rural areas as prescribed in Clause 1 Article 10 of this Decree, specifically:

a) Thirty percent for voluntary social insurance participants from poor households;

b) Twenty-five percent for voluntary social insurance participants from near-poor households;

c) Ten percent for other eligible recipients.

Depending on economic and social conditions, budget balancing capacity, and combining social resource mobilization, provincial People's Committees under central cities shall submit proposals to their respective People's Councils to decide on additional support for contributions to voluntary social insurance for participants within their jurisdictions beyond the levels specified in this Decree.

Based on economic and social development conditions and state budget capacity during each period, the Government will consider adjusting the support level for voluntary social insurance participants accordingly.

3. Method of support

3. Methods of Support:

a) Voluntary social insurance participants eligible for support must submit their own portion of the social insurance contributions to the social insurance agency or designated voluntary social insurance collection agents;

b) Every three months, six months, or twelve months, the social insurance agency compiles the number of eligible recipients, the collected amounts, and the state budget support amounts according to a model issued by the Vietnam Social Security, after obtaining the agreement of the Ministry of Finance, and sends it to the financial authority for transferring funds into the social insurance fund;

c) The financial authority, based on local budget management regulations and the summary of voluntary social insurance participants and state budget support funds transferred by the social insurance agency, is responsible for transferring funds into the social insurance fund quarterly; by no later than December 31 of each year, the transfer of support funds into the social insurance fund for that year must be completed.

4. The support funds for voluntary social insurance contributions are guaranteed by local budgets according to current state budget classifications; the central government provides support to localities facing financial difficulties.

Article 15.

2

(Repealed)

Chapter IV

IMPLEMENTING PROVISIONS

Article 16. Transitional Provisions

1. The provisions of this Decree apply to individuals who have participated in voluntary social insurance before January 1, 2016.

2. Individuals receiving monthly pensions before January 1, 2016, will continue to follow previous regulations and may have their benefits adjusted.

3. Individuals participating in voluntary social insurance prior to this Decree who have accumulated mandatory social insurance periods including regional allowances will, in addition to pension, lump-sum social insurance, and survivor benefits, also be entitled to a one-time regional allowance according to the mandatory social insurance law.

4. Individuals participating in voluntary social insurance before January 1, 2016, who meet the conditions and enjoy voluntary social insurance benefits will continue to follow the provisions of the 2006 Social Insurance Law.

5. For individuals who have already made payments under the three-month, six-month, or twelve-month payment methods or a single payment for multiple future years, including periods after the implementation of the contribution support policy, the support provisions of Article 14 of this Decree will not apply to the voluntary social insurance payment periods already made.

6. All surplus balances of the voluntary social insurance fund as stipulated in the 2006 Social Insurance Law up to December 31, 2015, will be added to the retirement and death benefit fund as prescribed in the 2014 Social Insurance Law.

Article 17. Effective Date

3

1. This Decree takes effect from February 15, 2016.

The provisions of this Decree shall be applied from January 1, 2016, except for the provision in Clause 2 of this Article.

2. State support for social insurance contributions for voluntary social insurance participants shall be implemented from January 1, 2018. There will be no support for social insurance contributions made voluntarily before January 1, 2018, except for cases where contributions are made in one lump sum for the missing years according to the payment method prescribed in Point e, Clause 1, Article 9 of this Decree.

3. The following documents shall cease to be effective upon the entry into force of this Decree:

a) Decree No. 190/2007/NĐ-CP dated December 28, 2007 of the Government guiding certain provisions of the Social Insurance Law on voluntary social insurance;

b) Decree No. 134/2008/NĐ-CP dated December 31, 2008 of the Government adjusting monthly income already paid for social insurance for voluntary social insurance participants.

Article 18. Responsibilities for Implementation

1. The Minister of Labor, Invalids, and Social Affairs shall be responsible for guiding the implementation of this Decree.

2. The Minister of Finance shall be responsible for ensuring the budget to implement the support policy for voluntary social insurance participants as stipulated in this Decree.

3. Every year, the Vietnam Social Security shall be responsible for announcing the average investment return rate of the social insurance fund of the previous year.

4. Every year, the General Statistics Office under the Ministry of Planning and Investment shall be responsible for promptly providing the average consumer price index of the year to the Ministry of Labor, Invalids, and Social Affairs.

5. Social insurance agencies shall be responsible for cross-referencing voluntary social insurance participants as specified in Points a and b, Clause 1, Article 14 of this Decree with the list of poor and near-poor households provided by local authorities to determine whether they are eligible for support as poor or near-poor households.

6. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for implementing this Decree.

 

Place of Receipt: - Minister (for reporting); - Office of the Government (for posting on the Government’s information website); - Official Gazette (for publication); - Ministry of Labor, Invalids, and Social Affairs’ electronic information portal (for publication); - To be filed: VT, VBHXH (3b)

THE MINISTER Dao Ngoc Dung