Many disadvantages when employees quit their jobs and wait to withdraw social insurance at one time

When receiving social insurance (SI) at one time, workers will be at a great disadvantage because they will not have a monthly pension and will not have a free health insurance (HI) card for health care.

Authorities recommend that workers consider carefully before deciding to receive one-time social insurance payments.

Since the beginning of the year, the whole province has had 11,386 people receiving one-time social insurance. According to Ms. Nguyen Thi Thanh Xuan, Director of the provincial Social Insurance, there are many reasons why workers decide to receive one-time social insurance, but basically it is still difficult life and not fully understanding the important role and position of social insurance as a "savings" implemented by the State to take care of people when they are old.

According to regulations, the total social insurance contribution is 22% of the monthly salary. Of which, the employee contributes 8%, the employer contributes 14%. When deciding to receive social insurance at a time, the amount the employee receives will be much less than the amount paid into the Social Insurance Fund. Specifically, one year of social insurance contribution is equal to 2.64 months of salary, while the employee only receives an amount equivalent to 1.5 months of salary for the years of contribution before 2014 and 2 months of salary for the years of contribution from 2014 onwards. Thus, the employee loses 0.64 months of salary each year. If receiving a pension each year, the employee receives 12 months of the average salary, in addition to receiving a one-time subsidy upon retirement. The one-time subsidy is calculated based on the number of years of social insurance contribution higher than the number of years corresponding to the pension rate of 75%. For each year of social insurance contribution, it is calculated as 0.5 months of the average salary.

In addition, pensions are not fixed but are adjusted to increase according to the price index and annual economic growth. Therefore, between two people with the same conditions of time and social insurance contribution level, and the same age, the total monetary benefit of the monthly pensioner will be much higher when receiving social insurance in one lump sum.

To retain workers in the social security system and limit the situation of withdrawing social insurance at one time, Ms. Nguyen Thi Thanh Xuan, Director of the provincial Social Security, shared: “If in difficult times, workers cannot participate in social insurance, everyone can reserve their payment period. When eligible, they can participate in compulsory or voluntary social insurance for the remaining years to be eligible to receive a monthly pension and be granted a health insurance card with a benefit level of 95% of medical examination and treatment costs during the pension period to take care of their health when they retire.”

It is clear that the social insurance policy brings great benefits to employees. To reduce the situation of receiving social insurance at one time, helping employees to enjoy maximum long-term benefits when they reach retirement age, the draft Law on Social Insurance has many amendments and supplements in the direction of increasing benefits, increasing the attractiveness to encourage employees to reserve their contribution period to receive pension instead of receiving social insurance at one time such as: reducing the conditions for receiving pension (reducing from 20 years to 15 years); receiving monthly allowances in cases where there is a period of social insurance contribution but not eligible for pension and not yet old enough to receive social pension benefits; receiving health insurance guaranteed by the state budget during the period of receiving monthly allowances. In addition, employees who are unemployed and have no job are also entitled to credit support policies to solve immediate financial difficulties...

On the sidelines of the National Assembly at the 6th Session of the 15th National Assembly, Ms. Le Thi Thanh Lam, Deputy Head of the Delegation of National Assembly Deputies of Hau Giang Province, expressed her views and contributions around the "hot" topic - Workers who quit their jobs waiting to withdraw their social insurance payments at one time.

Ms. Le Thi Thanh Lam, Deputy Head of the Delegation of National Assembly Deputies of Hau Giang Province. Photo: NVCC

Deputy Head of the Delegation in charge of the National Assembly Delegation of Hau Giang Province, Le Thi Thanh Lam, expressed her opinion: “I agree with the inclusion of option 2 in the Draft Law on Social Insurance (amended) because this option meets the need to receive one-time social insurance of employees when necessary, but also meets the requirements of ensuring the stability of the system and the rights of employees in the long term. With this option, firstly, it will retain employees in the social insurance system and when combined with other solutions, it will get closer to the goal of universal social insurance coverage. Second, when employees continue to participate in social insurance, their contribution time will be added to enjoy the social insurance regime with higher benefits, employees will be more motivated to continue participating, accumulate the contribution process to be eligible for pension; employees have more opportunities to be eligible for pension when they reach retirement age.

Currently, there is a situation where workers quit their jobs and wait to withdraw their social insurance payments at one time. Obviously, this is a worrying situation. Let’s not discuss other macro impacts, but I want to talk about 5 very specific disadvantages of workers including:

Firstly, they will lose the opportunity to receive a monthly pension, a stable and useful source of income when they retire. When social insurance participants receive a pension, the pension level will be adjusted periodically according to the consumer price index and economic growth, not a fixed pension level when they decide to retire.

Second, workers will lose the opportunity to be granted free health insurance cards during their pension period to enjoy health insurance benefits and health care for each person. In particular, the health insurance level for pensioners is paid up to 95%, which is superior to the 80% level of voluntary health insurance.

Third, the employee's relatives are not entitled to death benefits when the employee unfortunately passes away. If a pensioner unfortunately passes away, the person in charge of the funeral will receive a one-time funeral allowance equal to 10 times the basic salary in the month the pensioner passed away...

Fourth, the amount of social insurance that employees receive at one time will be less than the amount of money they have contributed to the social insurance fund.

Fifth, employees who have paid social insurance for the required number of years will receive a pension. If they quit their job before retirement age, they can reserve their payment period so that when they reach retirement age, they can receive a pension.

Regarding the Draft Law on Social Insurance (amended) this time, I will contribute some opinions with many contents, in which I am particularly interested in the content on one-time social insurance stipulated in Article 70 of the Draft Law.

I want to pay attention to ensuring the highest benefits for workers and people participating in voluntary social insurance, designing preferential policies so that more and more people trust and participate in social insurance, covering all people with social insurance, so that people can feel secure when they retire."

According to Labor and Trade Union Magazine

Article and photos: BICH CHAU

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