Vietnam is the country with the highest pension rate in the world


The maximum pension rate in Vietnam (75%) is currently the highest in the region, even the highest in the world.

Resolving social insurance procedures (Photo: Vietnam+)

13 business associations have submitted written comments and recommendations to the draft Vietnam Social Insurance Law (amended), thereby proposing to include the compulsory social insurance payment rate of employees and employers. employers to the 2009 payment rate. That is, employees pay 5%, employers pay 15%, for a total of 20%.

Regarding this recommendation, Vietnam Social Insurance has also just issued a written comment. Accordingly, the leader of Vietnam Social Insurance said that the social insurance payment rate (payment rate and salary level as the basis for social insurance payment) is calculated, considered carefully and comprehensively in all relationships. Relationships such as: Correlation, consistent with benefit level; Actual value of contributions and benefits; between payment and benefit period, coverage level of regimes; sharing principles mainly for short-term regimes.

The draft revised Law on Social Insurance has adjusted the benefits associated with the base salary in a specific amount of money instead of calculating it based on the base salary as currently prescribed.

Social insurance payment rates are only considered for upward adjustment with a roadmap in the 2007 Social Insurance Law. From the 2014 Social Insurance Law to the current (amended) draft Law, this issue has not been considered. , to ensure stability and sustainability.

According to a report by Vietnam Social Insurance, the rate of social insurance contributions in Vietnam is equivalent to some countries such as Singapore, China, Japan, Malaysia… but the maximum pension rate in Vietnam is the highest. in the region, even the highest in the world.

Introduction to social insurance regimes for employees. (Photo: PV/Vietnam+)

According to current social insurance laws, the maximum pension rate is 75%, corresponding to a social insurance payment period of 30 years for women and 35 years for men.

Thus, currently the cumulative rate, that is, the pension rate corresponding to one year of social insurance payment in Vietnam, is on average 2.14% for men and 2.5% for women, while In countries like China and Korea, this rate is only 1%; The world average is only about 1.7%.

According to a representative of Vietnam Social Insurance, currently Vietnam follows the model of calculating benefits in advance, so contributions must always be kept up to balance the durability of the Death Retirement Fund. Associations are comparing with many countries that have The model of social insurance contributions and benefits is not similar to our country.

In principle, the pension benefit level is determined based on two factors: the payment time (to calculate the benefit rate) and the average salary as a basis for social insurance payment. Therefore, the draft Law on Social Insurance (amended) has proposed adjusting to reduce the minimum number of years of social insurance payment to receive a pension from 20 years to 15 years, so that more workers can enjoy pensions. .

Resolve insurance regimes for employees. (Photo: PV/Vietnam+)

However, the draft law does not propose to increase the contribution rate nor to reduce the pension rate to compensate for the reduction in social insurance payment time in these cases. Therefore, the representative of Vietnam Social Insurance said that businesses raising the issue of reducing the social insurance payment rate will mean having to consider reducing the rate of social insurance benefits (the rate of social insurance benefits). pension) leading to the real value of the employee’s social insurance benefits being lower than the minimum payment period of 20 years. Therefore, it is not suitable for the practical conditions and context of Vietnam.

According to the representative of Vietnam Social Insurance, the assessment of the social insurance payment rate needs to be considered in connection with the social insurance model in each country, the relationship between the payment rate and the right to enjoy benefits, macroeconomic factors, such as economic development, GDP per capita, economic structure, labor market development, labor costs./.

The article is in Vietnamese

Tags: Vietnam country highest pension rate world


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