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Similar to other forms of social insurance (SI), voluntary social insurance is a financial fund protected by the state under the law, contributed by the participants of voluntary SI to compensate for a portion of income for workers, their families when they retire, cannot continue to work, or pass away.
Voluntary social insurance, guidelines on how to contribute to voluntary social insurance
If you're still unfamiliar with the concept, benefits, costs, and how to voluntarily enroll in social insurance, you can find answers in the article below by Mytour.
Voluntary Social Insurance Enrollment for Pension Benefits
1. What is voluntary social insurance?
Voluntary social insurance is a form of insurance organized by the state. Unlike mandatory social insurance, participating in voluntary social insurance allows individuals to choose the contribution level and method that suits their income.
Previously, we used to associate social insurance with the typical form of contribution aimed at office workers with clear labor contracts. However, with voluntary social insurance, any Vietnamese citizen over 15 years old, not subject to mandatory social insurance, can participate. Social insurance offers the opportunity to enjoy insurance benefits for freelancers while still receiving similar benefits as others.
Understanding the concept of voluntary social insurance and the eligibility criteria
2. What are the types of voluntary social insurance?
According to the social insurance law, participants in voluntary social insurance are entitled to two benefits: retirement and funeral benefits (excluding maternity insurance, illness, occupational accidents, and unemployment benefits like mandatory social insurance).
With these regulations, readers can easily find answers regarding the voluntary social insurance benefits as follows:
- Can voluntary social insurance cover maternity benefits?
Answer: No
- Are unemployment benefits covered by voluntary social insurance contributions?
Answer: No
Benefits of voluntary social insurance, rights when participating in voluntary social insurance
3. How much is voluntary social insurance?
According to general regulations, the calculation of voluntary social insurance contributions will be 22% of the declared income, with a minimum of 154,000 VND/month (equivalent to a declared income of 700,000 VND/month, the standard income for poor households in rural areas) and a maximum of 6,116,000 VND/month (equivalent to an income of 27,800,000 VND, 20 times the basic salary).
For easy comparison of the benefits and limitations of voluntary social insurance and compulsory social insurance, you should refer to Mytour's article on what social insurance is.
Understanding the fee structure for voluntary social insurance
4. How to pay voluntary social insurance?
Article 1, Clause 9 of Decree No. 134/2015/NĐ-CP stipulates six methods for paying voluntary social insurance contributions: paying monthly, every three months, every six months, annually, paying for multiple years but not exceeding once every 5 years, and paying once for the missing years (not exceeding 10 years) to be eligible for retirement benefits. Specifically as follows:
Guide on how to enroll in voluntary social insurance for retirement benefits
Note: In case participants in voluntary social insurance have contributed for 3 months or more, then stop participating and switch to mandatory social insurance, receive social insurance benefits once, die, or are declared dead by the court, they will be refunded a portion of the amount previously paid. The refund amount is calculated based on the remaining time compared to the time of contribution according to the payment method mentioned above and does not include state support for contributions (if any).
- More: Download VssID
5. Where to enroll in voluntary social insurance?
If you need to purchase and enroll in voluntary social insurance for retirement benefits, you can register at the district/commune/ward social insurance office, place of temporary residence, temporary absence, or permanent residence.
When registering for voluntary social insurance, you will be provided with a registration form by social insurance officials. To expedite the registration process, you should download, print, and fill out the information on the form at home.
- Click to download the voluntary social insurance registration form here
Above, Mytour has provided you with detailed information on the concept, benefits, and enrollment process for voluntary social insurance for retirement benefits under the 2014 Social Insurance Law. Hopefully, this knowledge is useful to you, helping you better understand this insurance participation method. Additionally, you can refer to How to look up social insurance information online here.
