Participate in social insurance to enjoy pension and health care in old age

The option to enjoy one-time social insurance allowance: To miss the opportunity to enjoy pension and health insurance benefits

The main reason why employees choose one-time social insurance allowance is that, some of them have difficulty finding jobs during the Covid-19 epidemic, and they want to have an immediate expenditure to cover their living expenses. In addition, a part of employees still bears the concept of "when young, one relies on one's father, then when old, one relies on one's children", and has not formed the habit of self-security in old age and paying social insurance contributions so that when the working age is over, they can have a pension and take the initiative with their lives without being dependent on their children.

The departure of employees from the social insurance system is a matter of concern, not only directly affecting the interests of employees, but also affecting the goals, efforts and determination of the Government to implement social security for the entire population, leaving no one behind. Because, receiving a one-time social insurance allowance can only solve immediate economic needs, but in the long run, it will be greatly disadvantageous for employees when the working age is over.

When choosing to enjoy a lump-sum social insurance allowance, the employee's benefits will be more limited than when receiving a pension, such as:

Firstly, if you receive one-time social insurance allowance then later re-join social insurance, the time of payment of social insurance contributions will not be cumulatively added, but it will be calculated as the time of payment of new social insurance contributions. Thus, employees may lose the opportunity to enjoy pensions, have no income to ensure lives at the end of working age, or if they still have enough time to enjoy pensions when they retire, due to the small amount of time they have to pay social insurance contributions, their pension will be low, financial support and long-term stability will be lost, when working capacity is reduced, and working age is over.

Secondly, during the entire pension enjoyment period (the age most prone to health problems for each person), the employee is paid by the social insurance fund to issue a free health insurance card (retirees with pensions do not have to purchase health insurance cards) and enjoy benefits on medical treatment covered by health insurance. When the pensioner unfortunately dies, the person taking care of the funeral is entitled to a funeral allowance equal to 10 times the base salary in the month the pensioner dies and his/her relatives are entitled to a monthly or one-time death benefit.

Thirdly, the payment to the social insurance fund is one of their own precious savings, which will not be lost, but on the contrary, will still be managed and invested by the social security agency for growth; participants can reserve the time of payment of social insurance contributions so that when conditions permit, they can continue to participate in compulsory or voluntary social insurance with the support of payment from the State. During the confinement period, if he/she unfortunately dies, the family will be entitled to a funeral allowance, and the relatives are entitled to a survivorship allowance according to regulations.

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Fourthly, receiving one-time social insurance allowance is to accept a huge disadvantage when with 22% of the monthly salary paid to the retirement and survivorship fund, the total payment per year is 2.64 months' salary. While the one-time social insurance allowance for each year of paying social insurance premiums is only 1.5 months the average monthly salary on which social insurance premiums are paid for the years of payment before 2014 and 02 months the average monthly salary on which social insurance premiums are paid for the years of payment from 2014 onwards.

Fifthly, once social insurance participants have received their pension, their pension level is periodically adjusted according to the consumer price index and economic growth.

Thus, when employees receive one-time social insurance allowance, they will be disadvantaged and have spent all their old-age pension when they have not yet reached retirement age. As a result, when they get old without pension, they will have to depend on their children, grandchildren and society; If they are unfortunately ill and do not have a health insurance card, they also face the risk of not being able to pay medical expenses after only one illness and a long hospital stay, thereby facing poverty, exhaustion, becoming a burden on the family and society.

Therefore, considering and choosing to receive a one-time social insurance allowance is very crucial for each employee. VSS recommends, that you shall not miss the opportunity to enjoy a pension to cover life for immediate benefits, and you should enjoy health insurance regimes to take care of your health in old age.

Unemployment insurance policy - A "lifebuoy" for employees during Covid-19

During this time, if unfortunately unemployed, employees should register to receive unemployment benefits, and vocational training allowances; or register to receive support from the Government's welfare package. Waiting for the difficult period caused by the Covid-19 epidemic to pass by and the economy to operate, employees will have the opportunity to return to the labor market, and continue to pay social insurance contributions to cumulatively add the time for pension benefits later.

Employees' benefits with unemployment insurance regime are: They will enjoy an unemployment allowance equal to 60% of the average monthly salary on which unemployment insurance premiums are based of the 06 preceding months before unemployment, up to a maximum of 5 times the base salary or 05 times the regional minimum wage; enjoy the health insurance regime according to regulations for medical treatment covered by health insurance when unlucky enough to fall ill; be provided with vocational training support (maximum 1 million VND/person/month); free support, advice, job introduction; be trained, fostered and improved regarding professional skills.

The unemployment insurance policy is considered a "lifebuoy" of employees against the negative effects of Covid-19, helping to partly ensure the life of a part of unemployed workers and their families, contributing to the stability of the economy and society of the country.

Social insurance, health insurance, unemployment insurance are preeminent and humane social security policies of the Party and State to take care of the immediate life (health insurance, sickness, maternity, labor accidents, occupational diseases, unemployment, etc.) and in the long term for people (retirement, death), so employees should think of both immediate and long-term benefits without choosing the one-time social insurance allowance to ensure their own welfare, especially at the end of the working age.