Difficulties caused by the COVID-19 pandemic have prompted many labourers to receive a one-time social insurance allowance in order to have money to cover daily expenses while others decided to get the one-time social insurance payment to have an available amount of money. This situation has led to a rapid increase in the number of employees getting one-time social insurance payments. More than 700,000 employees decided to receive a one-time social insurance payment in the first ten months of this year. The number is 5.45 per cent higher than the same period last year. This will not only directly affect the interest of employees but also affect the socio-economic situation and the Government’s targets, efforts and determination to ensure social security for the whole population.

Under current regulations, the total social insurance contribution to the retirement and survivorship funds is 22 per cent of the employee’ monthly salary based on which the social insurance premium rate is calculated. Of which, the employee contributes eight per cent and the employer contributes 14 per cent and the total annual social insurance payment is equal to 2.64 months of salary.

Meanwhile, the one-time social insurance claim per year is only equal to 1.5 months of the average monthly salary contributed to social insurance in the years before 2014 and 2 months of average monthly salary contributed to social insurance from 2014 onwards. Therefore, if receiving the one-time social insurance payment, the employees will lose an estimated 1.14 months of salary for each year contributing to the social insurance before 2014 and 0.64 months of salary for each year contributing to the social insurance from 2014 onwards.

Social insurance policies bring in many benefits for employees unlike other savings. Currently, the payment rate for compulsory social insurance is 25 per cent of the employee’s monthly salary. Of which, the employee contributes 8 per cent and the employer contributes 17 per cent. For example, if an employee has monthly salary of VND5 million, the social insurance fund will collect VND1.25 million. Of which, the employee has to contribute VND400,000 (equivalent to 32 per cent of the total fund) and the employer has to contribute VND850,000 (equivalent to 68 per cent of the total fund). So by spending 8 per cent of the monthly salary (equivalent to 32 per cent of the total fund), the employee will enjoy many benefits from the fund such as policies relating to sickness, maternity, labour accident - occupational disease, retirement and survivorship. The employee will receive the maximum retirement allowance, for example, of VND3.75 million per month, while he/she has to contribute only VND400,000 per month.

For freelance workers, when joining voluntary social insurance, they can choose the rate of social insurance premium payment in line with their economic conditions. The lowest rate is VND700,000, equal to the standard rate of low income households in rural areas. So with a monthly payment rate equivalent to 22 per cent of their monthly salary, they only have to contribute VND138,600 (as the State will support 10 per cent), but will get a maximum retirement allowance of 75 per cent of their average contribution. Additionally, they will be granted health insurance cards which will cover 95 per cent of their health examination and treatment expenses at qualified medical establishments. Besides, relatives of freelance workers who join voluntary social insurance will also get survivor benefits after the workers die.

In fact, there are many labourers who wanted to rejoin social insurance after they received the one-time social insurance allowance in order to meet requirements to get a pension when they retire. However, the law on social insurance does not cover these instances.

Therefore, labourers should take careful consideration before deciding to get the one-time social insurance allowance. The most effective way to have a stable life when getting old is to have a stable source of finance by getting a monthly pension and to be granted with health insurance cards to take care of their health. So labourers should save money and join social insurance from a young age.

If a labourer is facing difficulties and cannot continue paying compulsory social insurance, he or she has the right of reservation and then can continue to pay later to be eligible to receive a pension and be granted a health insurance card to help take care of their health in old age./.