New proposal on social insurance contribution level when reforming salary from July 1

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung, authorized by the Prime Minister, signed the Government's report on receiving and explaining the draft Law on Social Insurance (amended) to the National Assembly Standing Committee.

What is the specific reference level for social insurance calculation?

In particular, the report clearly states the impact of the new wage policy on the implementation of social insurance policy and proposes related contents in the draft Law on Social Insurance (amended).

Specifically, on April 12, the Government issued a report assessing the impact of the new wage policy on the implementation of social insurance policy and proposed related regulations in the draft law to the National Assembly Standing Committee.

In the report, the Government proposed a specific plan to amend Articles 62 and 63 of the 2014 Law on Social Insurance, which are shown in Articles 76 and 77 of the revised draft law, and specifically allow this provision to be applied from July 1, 2024.

This is to synchronize and unify with the time of implementing salary policy reform. At the same time, the Government proposes to continue implementing social insurance regimes currently linked to the basic salary until the amended law comes into effect.

To concretize the proposal to continue implementing the current social insurance regimes linked to the basic salary, and at the same time, to absorb the opinions of National Assembly deputies that it should not be regulated as an absolute amount but should use another basis instead, the Government proposed to use the "reference level for calculating social insurance" to replace the "basic salary".

This replacement in the contents of social insurance regimes in the 2014 law is linked to the basic salary and adds a clause on transitional provisions of the revised bill.

Specifically, the reference level for calculating social insurance is calculated at 1.8 million VND from July 1, 2024, replacing the basic salary for implementing social insurance according to the provisions of the 2014 law and for implementing social insurance according to the provisions of this amended law.

The reference level for calculating social insurance is adjusted according to Government regulations based on the increase in the consumer price index and in accordance with the capacity of the state budget and social insurance fund.

Continue to submit to the National Assembly 2 options for withdrawing social insurance at one time

Regarding the content of receiving one-time social insurance benefits, the report stated in the revised bill and the submission, the Government proposed 2 options.

Both options aim to achieve the goals and policies of Resolution 28 of the 12th Central Executive Committee on reforming social insurance policies.

In order to better ensure long-term benefits and sustainable social security for workers at different levels and in different ways, and limit the number of people receiving benefits at one time, each option has certain advantages and disadvantages.

Implementing the conclusion of the National Assembly Standing Committee, the Government has directed the drafting agency to closely coordinate with the verification agency to continue to collect opinions from relevant parties and directly from employees (both employees who are participating and have received a lump sum).

The Government believes that in order to expand social insurance coverage to achieve the Party's goals in Resolution 28, moving towards universal social insurance, it is necessary to implement comprehensive and synchronous solutions.

Along with policies to increase benefits, encouraging employees to reserve their contribution period to receive pension instead of receiving social insurance at one time has been stipulated in this draft law.

At the same time, it is also necessary to effectively implement other relevant policies and laws such as credit support to solve immediate financial difficulties...

Emphasizing that this is a big, sensitive, and complicated issue, the Government continues to agree to submit and propose that the National Assembly consider and decide on one of two one-time payment options.

Previously, Chairwoman of the Social Committee Nguyen Thuy Anh said that the number of people withdrawing social insurance at one time continuously increased, with nearly 122,000 people withdrawing in April, an increase of nearly 39% compared to the average of the entire first quarter of 2024.