The Government officially presented to the National Assembly 2 options for withdrawing social insurance at one time.

Authorized by the Prime Minister, Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed a submission to the National Assembly on the draft Law on Social Insurance (amended). This draft law will be given its first opinion by the National Assembly at its upcoming 6th session.

In the submission, the Government continues to present two options related to one-time social insurance.

Divided into 2 groups to receive social insurance at one time

With option 1,Regulations on one-time social insurance benefits for two different groups of workers.

Group 1:Employees who participated before the amended law took effect, after 12 months of unemployment and less than 20 years of insurance contributions, are eligible to receive a lump sum.

Group 2:Employees who start participating from the time the amended law comes into effect (expected July 1, 2025) will not receive it in one lump sum.

Only one-time payment is made in cases where the person is old enough to receive pension but has not contributed enough years to receive pension; goes abroad to settle down or suffers from one of the life-threatening diseases...

In terms of advantages, the Government believes that this plan will gradually overcome the one-time benefit situation.

According to data, in the first years the number of beneficiaries did not decrease much, but in the following years it decreased more and more, from the 5th year onwards it decreased rapidly...

In the short term, this option does not help maintain or increase participation compared to option 2, but in the long term it is more optimal.

Besides, because the regulation does not affect the participating workers, it will be easier to get consensus.

However, according to the Government, there is still a disadvantage that because it only applies to employees who start participating from the effective date of the law, more than 17.5 million employees who are participating still have the right to choose to receive a lump sum.

Therefore, the number of people receiving lump sum benefits did not decrease much, especially in the first years after the new law took effect. At the same time, it created a comparison between workers participating before and after the law took effect in receiving lump sum benefits.

Maximum withdrawal is no more than 50%

With option 2,After 12 months of not being subject to compulsory social insurance, not participating voluntarily and having less than 20 years of contribution, the employee has a request to be partially resolved but not exceeding 50% of the total time contributed to the pension and death fund.

The remaining payment period is reserved for employees to continue participating and enjoying the benefits.

The Government believes that this plan has the advantage of ensuring the spirit of Resolution 28, harmonizing the immediate interests of workers and long-term social security policies.

Although the number of people receiving a lump sum may not decrease much compared to the current level, when workers receive it, they will not completely leave the system because part of the remaining contribution period is still reserved (not affecting the number of participants).

Employees who continue to participate will have their contribution time added to enjoy social insurance benefits with higher benefits, and have more opportunities to qualify for pension when they reach retirement age...

According to the Government, this is a plan that both meets the current need for workers to receive a one-time payment, but also meets the requirements of ensuring the stability of the system and long-term benefits.

However, the disadvantage has not completely resolved the one-time withdrawal according to international standards and practices.

Employees have completed a part of the payment period and can only reserve a part of the payment period, which will affect the enjoyment of benefits (short payment period) when continuing to participate.

Workers are not entitled to receive a lump sum benefit for the entire contribution period, so they feel their benefits are reduced in the short term.

At the same time, there may be an increase in workers requesting lump sum benefits before the law comes into effect. In addition, under this plan, the situation of receiving lump sum benefits at a young age (before retirement age) will continue in the future.

This is a big, extremely sensitive and complicated issue, so the Government reports to the National Assembly for opinions on the two above options.