Social Insurance - Key to a Stable Social Security

Social insurance in Vietnam is a policy that ensures income for individuals in case of illness, maternity, accidents, retirement, or death. It offers benefits based on the length of participation and salary contribution. There are two types: compulsory and voluntary. Compulsory insurance has a fixed contribution rate and guarantees full benefits, but lacks flexibility. Voluntary insurance allows participants to decide their contribution level but has fewer participants and less tight management. Benefits include sick leave, maternity leave, and compensation for occupational accidents or diseases. Social insurance, SI, is an important social security policy of the Vietnamese state and government aimed at ensuring income for participants when they experience a reduction or loss of income due to illness, maternity, occupational accidents, occupational diseases, retirement, or death. Participation in SI brings many practical benefits to workers, contributing to their protection and that of their families against life's risks. 1. What is social insurance? Social insurance, SI, is an important social security policy of the Vietnamese state and government aimed at ensuring income for participants when they experience a reduction or loss of income due to illness, maternity, occupational accidents, occupational diseases, retirement, or death. Illness, maternity, workers are entitled to benefits when they are sick or pregnant, with the amount of payment depending on the length of SI participation and the salary contribution. Occupational accidents, occupational diseases, workers are entitled to benefits when they suffer from occupational accidents or occupational diseases, with the amount of payment depending on the level of the injury and the length of SI participation. Retirement, workers are entitled to a pension when they reach retirement age as prescribed. Death, workers are entitled to a death benefit for their loved ones when they die. SI is implemented on the principles of voluntariness, self-responsibility, contribution, and enjoyment. SI participants will contribute a certain amount of money to the social insurance fund each month. When there is a need to receive benefits, participants will be paid from the social insurance fund, benefits of participating in SI. Income security, SI helps you secure your income when you experience a reduction or loss of income due to illness, maternity, occupational accidents, occupational diseases, retirement, or death. Protect yourself and your family, SI helps you protect yourself and your family from life's risks. Enhanced social security, SI contributes to strengthening social security and improving people's quality of life. Two types of social insurance. A. Compulsory social insurance, CSI. Participants. Workers working under labor contracts, civil servants and public servants. Professional officers and soldiers. Students. Other subjects as prescribed by law. Benefits. Benefits when sick, pregnant. Benefits when occupational accidents, occupational diseases. Pension. Death benefits. Other benefits as prescribed by law. Obligations. Workers contribute SI according to the prescribed rate, 14% to 23% depending on salary. Employers contribute SI according to the prescribed rate, 14% to 23% depending on salary, and fulfill other obligations as prescribed by law. Advantages. Full and stable benefits guaranteed. Large number of participants, effective risk sharing. Tight and transparent management system. Disadvantages. Low flexibility, difficult to adjust to individual needs. Contribution level may be high for some subjects. B. Voluntary social insurance, VSI. Participants. Workers who do not participate in CSI. Unemployed people. Vietnamese living abroad. Other subjects as prescribed by law. Benefits. Benefits when sick, pregnant. Benefits when occupational accidents, occupational diseases. Pension. Death benefits. Other benefits as prescribed by law. Obligations. Participants decide their own contribution level and contribution method, monthly, quarterly, annually. Advantages. High flexibility, easy to adjust to individual needs. Contribution level is suitable for the financial capacity of the participants. Disadvantages. Benefits depend on the contribution level of the participant. Fewer participants, ineffective risk sharing. Management system is not as tight as CSI. The choice of which type of SI is appropriate depends on the individual's needs, financial capacity, and circumstances. 3. Benefits of social insurance participants. Benefits when sick, pregnant. Workers are entitled to benefits when they are sick or pregnant, with the amount of payment depending on the length of SI participation and the salary contribution. Conditions for enjoyment. Workers have participated in SI for three consecutive months before taking sick leave, giving birth, or adopting children. Have documents proving the time of illness, childbirth, or adoption as prescribed. Procedures for enjoyment. Workers make an application for sick leave, maternity leave benefits according to the prescribed form. Submit the application and related documents to the SI agency where they participate. The SI agency will verify and pay benefits according to regulations. Benefits when occupational accidents, occupational diseases. Workers are entitled to benefits when they suffer from occupational accidents or occupational diseases, with the amount of payment depending on the level of the injury and the length of SI participation.