The provincial social insurance (Social Insurance) said that, as the Covid-19 pandemic has affected the people's life and work, a part of the employees chooses one-time social insurance to obtain an amount for immediate spending for their own expenses.
Besides, a part of the employees still holds the concept of “As young, one is dependent on his father; as old, one is dependent on his children”, and they have not been fully aware of the meaning of social insurance contributions so that they can obtain some pension when the working age ends and ensure their welfare when they grow old.
An employee is
doing the procedures for receiving the one-time social insurance at the
provincial social insurance agency
Facing many risks
According to Director of Social Insurance Pham Minh Thanh, in case employees receive one-time social insurance, if they get unfortunately ill when they are old without any health insurance card, employees may face the risk of not being able to pay for examination and treatment after only one time of illness and hospitalization in a long time, etc. because during the entire period of pension entitlement, employees are paid by the social insurance fund to for free health insurance cards and benefit from medical examination and treatment with health insurance cards. On the other hand, when unfortunate pensioner dies, the person in charge of the funeral is entitled to a lump-sum funeral allowance equaling 10 times of the basic salary at the time the pensioners dies, and their family members are entitled to the death benefit every month or once.
“According to the law, the total pension insurance is 22% of the monthly salary as a basis for employees to pay social insurance. In particular, employees pay 8% and the employer pays 14%, meaning the total contribution to the social insurance fund is equal to 2.64 months' salary. Meanwhile, the level of one-time social insurance allowance for each year of payment of social insurance premium is only equal to 1.5 months of the average monthly salary for payment of social insurance premium for the years of payment before 2014 and 2 months of the average monthly salary for payment of social insurance premium for the years of payment from 2014 onwards. It is clear that there are disadvantages when receiving one-time social insurance. According to the preliminary calculation of the social insurance agency, the one-time payment of social insurance will cause employees to lose 4-5 times than continuing to pay insurance premiums to enjoy their pension in the future.” said Mr. Thanh.
Director of the Dong Nai Province Confederation of Labor 's Legal Advisory Center Vu Ngoc Ha shared that when advising employees on one-time social insurance-related issues, he emphasized: “The contribution to the social insurance fund is saved, not lost, but on the contrary, managed and invested for growth by the social insurance agency. Participants can reserve the time of social insurance payment so that when possible, they can continue to participate in compulsory social insurance or voluntary social insurance with the support of the State instead of obtaining the one-time social insurance".
Considering carefully before making a decision
During this time, if unfortunately unemployed, employees should register to receive unemployment benefits and vocational training allowance; make procedures for support from the Government's welfare package. Waiting for the difficulties caused by the Covid-19 pandemic to pass away, employees will have the opportunity to return to the labor market, and continue to receive social insurance to extend the time to calculate the future pension entitlement.
According to the regulation, during unemployment, when making procedures for social insurance, the unemployed will be entitled to unemployment allowance equal to 60% of the average monthly salary paid for unemployment insurance of the 6 consecutive months before unemployment, not over 5 times of the base salary or 5 times of the regional minimum wage; and enjoy the health insurance regime according to regulations for medical examination and treatment with health insurance when they are unfortunately sick.
Along with that, the unemployed will be supported with vocational training (1 million/ person/ month in maximum); offered with free support, advice, job placement, and training; and fostered with occupational skills. This can be considered as a "life buoy" for them in the negative effects of the Covid-19 pandemic, helping to ensure a partial life for unemployed workers and their families, contributing to economic and social stability of the country.
Social insurance, health insurance, unemployment insurance are very preeminent social welfare policies of the Party and the State to take care of people's lives beforehand (health insurance, sickness, maternity, labor accident - occupational disease and unemployment, etc.) and permanently for residents (retirement and death). Therefore, employees should think about both immediate and long-term benefits, carefully considering the selection of one-time social insurance and work together with the State to ensure social security for themselves, especially at the end of working age.
Phong Lan - Trang Thu
Mr. Le Dinh Quang, Deputy Head of Labor Relations Department, General Confederation of Labor of Vietnam said: “In some cases of real difficulties, employees want to receive one-time social insurance benefits but in some cases, they still make a one-time application for social insurance due to lack of understanding the meaning of long-term social insurance policies. Receiving one-time social insurance means that those employees would leave the social security system permanently”.
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