One-time social insurance withdrawal restrictions must be accompanied by financial support policies

This is the opinion of Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor (VGCL) on the plan to withdraw social insurance at one time, proposed by the Government to seek opinions from the National Assembly this time.

According to the Government's proposal, there are 2 options: Option 1, employees who participated in social insurance before the law took effect (expected July 1, 2025), after 12 months of unemployment, if they have a need, can withdraw their social insurance in one lump sum. Employees who start participating in social insurance from the effective date of the Social Insurance Law (amended) onwards will not be allowed to withdraw their social insurance in one lump sum, except in some special cases.

Option 2: After 12 months, employees who are not subject to compulsory social insurance, do not participate in voluntary social insurance and have paid social insurance for less than 20 years, if they wish, can only withdraw a maximum of 50% of the total time contributed to the pension and death fund. The remaining social insurance payment period is reserved for employees to continue participating and enjoying social insurance benefits.

Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu said: "In the two options above, each option has its own advantages. One of the first points we propose and defend when amending this law is not to reduce the rights of workers. In fact, there are cases where the law is amended, but the rights of workers may be reduced, for example: Raising the retirement age, the insurance rights of workers are affected".

In addition, Mr. Ngo Duy Hieu also said that the Union does not want employees to withdraw their social insurance at one time. The withdrawal of social insurance at one time by employees is also a concern of the Union about social security in the future.

"When issuing a regulation, the choice of which option must be accompanied by a mechanism of conditions of the State to support workers to limit one-time withdrawal of social insurance, for example, an expanded credit system, giving priority to workers. Currently, we do not have a credit system specifically for workers. If there is only credit for poor households, it will be very difficult for workers to access. We believe that workers must still be allowed to withdraw social insurance one time, because withdrawal is their human right. When they participate with their own money, they must have the right to withdraw when they want. However, our wish is to limit withdrawal, accompanied by financial support policies to ensure that situations are resolved when workers encounter difficulties and they do not become victims of black credit," said Mr. Ngo Duy Hieu.

Sharing more about the two options for withdrawing social insurance at one time, Mr. Vu Minh Tien, Head of the Legal Policy Department (Vietnam General Confederation of Labor) said: "Each option has its own advantages and disadvantages. One side aims to ensure the right of employees to withdraw social insurance at one time. The other side wants to keep them in the social security net so that they can retire later. If they get a salary increase and have savings, no one wants to withdraw all their social insurance."