The year 2022 will be a year with many changes in social insurance policies and pensions, directly affecting the interests of employees. Increasing the employee’s retirement age, changing the calculation of the male employee’s pension, increasing the minimum voluntary social insurance contribution rate… are some of the new points that will be applied from this year.
1. Increase in pension and social insurance benefits
Decree 108/2021/ND-CP stipulates that from January 1, 2022, it will be adjusted to increase by 7.4% on the pension, social insurance allowance and monthly allowance of December 2021 for the subjects specified in Clause 1, Article 1 of this Decree, including:
– Cadres, civil servants, workers, public employees and employees (including those who have time to participate in voluntary social insurance, retirees from Nghe An farmer’s social insurance fund transferred under Decision No. No. 41/2009/QD-TTg dated March 16, 2009 of the Prime Minister on the conversion of social insurance of Nghe An farmers to voluntary social insurance); military personnel, people’s police and cipher workers who are receiving monthly pensions.
– Commune, ward and township officials specified in Decree No. 92/2009/ND-CP dated October 22, 2009 of the Government on titles, numbers, a number of regimes and policies towards cadres, civil servants in communes, wards and townships and those working part-time at the commune level, Decree No. 34/2019/ND-CP dated April 24, 2019 of the Government amending and supplementing a number of regulations on commune-level cadres and civil servants and part-time workers at commune, village and residential groups, Decree No. 121/2003/ND-CP dated October 21, 2003 of the Government on regimes and policies for cadres and civil servants in communes, wards and townships and Decree No. 09/1998/ND-CP dated January 23, 1998 of the Government amending and supplementing Decree No. 50/CP of July 26, 1995 of the Government on the living expenses regime for commune, ward and township officials who are enjoying monthly pensions and allowances.
– Persons who are receiving monthly allowance for loss of working capacity as prescribed by law; people who are receiving monthly allowances according to Decision No. 91/2000/QD-TTg dated August 4, 2000 of the Prime Minister on allowances for those who have reached the end of working age at the time of cessation of receiving disability benefits. monthly labor, Decision No. 613/QD-TTg dated May 6, 2010 of the Prime Minister on the monthly allowance for those who have from full 15 years to less than 20 years of actual work has expired. receive benefits for loss of working capacity; rubber workers are enjoying monthly allowances according to Decision No. 206-CP dated May 30, 1979 of the Government Council on policies for newly liberated workers doing heavy jobs, harmful to health, and now old and weak. have to quit.
– Commune, ward and township cadres who are receiving monthly allowances according to Decision No. 130-CP dated June 20, 1975 of the Government Council supplementing policies and remuneration regimes for commune officials and Decision No. No. 111-HDBT dated October 13, 1981 of the Council of Ministers on amending and supplementing a number of policies and regimes for commune and ward officials.
– Soldiers are enjoying the monthly allowance according to Decision No. 142/2008/QD-TTg dated October 27, 2008 of the Prime Minister on implementing the regime for soldiers participating in the resistance war against the US for national salvation. having less than 20 years of service in the army, have been discharged and returned to the locality (amended and supplemented by Decision No. 38/2010/QD-TTg dated May 6, 2010 of the Prime Minister).
– The People’s Public Security Forces are receiving a monthly allowance under the Prime Minister’s Decision No. 53/2010/QD-TTg dated August 20, 2010 on regulations on regimes for officers and soldiers of the People’s Public Security who participate in Anti-American resistance fighters with less than 20 years working in the People’s Public Security have quit their jobs and been discharged from the army.
– Soldiers, People’s Public Security, people doing cipher work receive salary like soldiers and people’s police who are receiving monthly allowance according to Decision No. 62/2011/QD-TTg dated November 9, 2011 of the Prime Minister on regimes and policies for those who participated in the war to defend the Fatherland, performed international missions in Cambodia, and helped Laos who had served, discharged from the army after April 30, 1975.
In addition, after an increase of 7.4%, but the pension, social insurance allowance, monthly allowance of retirees before 1995 is still less than 2.5 million VND, they will still be increased by the same rate as follows:
– For people with a benefit level of 2.3 million VND/person/month or less: An additional 200,000 VND/person/month;
– For people with benefits from 2.3 to under 2.5 million VND/person/month: Increase to 2.5 million VND/person/month.
2. Increase the retirement age of employees
Article 169 of the Labor Code 2019 stipulates the retirement age of employees working under normal conditions as follows: “The retirement age of employees under normal working conditions is adjusted according to the until reaching the age of 62 for male workers in 2028 and reaching 60 years of age for female employees in 2035.” From 2021, the retirement age of employees under normal working conditions is full 60 years and 3 months for male employees and full 55 years and 4 months for female employees; after that, every year increases by 3 months for male employees and 4 months for female employees.
Thus, by 2022, the retirement age of employees working in normal conditions will have the following changes:
– Male employees: From full 60 years old and 6 months (increasing 3 months compared to 2021).
– Female employees: From full 55 years old 8 months (increasing 4 months compared to 2021).
3. Changing the calculation of male workers’ pensions
According to the Law on Social Insurance 2014, an employee’s pension is calculated according to the following general formula:
Pension = Enjoyment rate x Average monthly salary on which Social Insurance is paid
At the time of 2022, the pension rate will still be calculated according to the above formula, but the way to determine the pension rate for male employees will be adjusted. Specifically, Article 56 of the Law on Social Insurance 2014 stipulates: “From January 1, 2018, the monthly pension of employees who fully meet the conditions specified in Article 54 of this Law shall be equal to 45% of the salary level. The average monthly salary on which social insurance premiums are based is specified in Article 62 of this Law and corresponds to the number of years of payment of social insurance premiums as follows: Male employees who retire in 2018 are 16 years, in 2019 are 17 years, 2020 is 18 years, 2021 is 19 years, from 2022 onwards is 20 years; After that, for each additional year, the annual employee is charged an additional 2%; up to 75%.” According to the above regulations, male employees who retire in 2022 must pay social insurance premiums for full 20 years to enjoy the 45% rate. Meanwhile, in 2021, only having to pay social insurance for full 19 years, male employees will enjoy 45%.
With this new calculation, male employees who retire in 2022 and pay full 20 years will only be entitled to a pension equal to 45% of the average monthly salary on which social insurance premiums are based. In order to enjoy the maximum rate of 75%, male employees need to pay social insurance premiums for 35 years or more.
4. Increase the minimum voluntary social insurance premium from 2022
Article 87 of the Law on Social Insurance in 2014 stipulates that the minimum income level as a basis for paying voluntary social insurance is the poverty line of rural areas. Because the poverty line in rural areas in 2022 has changed, namely 1.5 million VND/month (the old level in 2021 is 700,000 VND/month), the minimum voluntary social insurance premium will also increase from 2022.
Every month, employees will have to deduct 22% of their chosen income to pay voluntary social insurance. Accordingly, from 2022, the minimum voluntary social insurance contribution rate of employees will be 22% x 1.5 million VND = 330,000 VND.
5. Foreign workers will be entitled to one-time social insurance when they leave work
According to Clause 2, Article 17 of Decree 143/2018/ND-CP, the one-time social insurance scheme for foreign workers will be applied from January 1, 2022. Therefore, based on Clause 6, Article 9 of this Decree, foreign workers participating in Social Insurance will be entitled to receive social insurance once upon request if they fall into one of the following cases:
– Having reached the retirement age but have not yet paid full 20 years of social insurance payment.
– Having a life-threatening disease such as cancer, polio, cirrhosis of the liver ascites, leprosy, severe tuberculosis, HIV infection that has turned to AIDS and other diseases as prescribed by the Ministry of Health.
– Eligible for pension but do not continue to reside in Vietnam.
– The labor contract is terminated or the work permit, practice certificate or practice license expires without being renewed.
Thus, if, after terminating the labor contract, there is a need to withdraw the one-time social insurance premium, the foreign worker can make a dossier of application for entitlement according to regulations.