What is social insurance? Should you enroll in social insurance or not?

Social insurance with regimes such as retirement, maternity, sickness, funeral benefits, etc., are terms that are not new to the people, especially to the workers in companies and factories. However, very few people understand the contribution rates and benefits of this type of insurance. So, what is social insurance? Should you enroll in social insurance or not? Understanding the overview of social insurance below will help you find the answer.

What does social insurance include? What are the benefits when participating in social insurance?

1. What is social insurance? How many types are there?

According to Article 3 of the 2014 Social Insurance Law, 'Social insurance is the replacement or compensation of a portion of the income of employees when they suffer from reduced or lost income due to sickness, maternity, occupational accidents, occupational diseases, reaching the retirement age, or death, based on contributions to the social insurance fund'.

Social insurance is currently popular with 2 types: compulsory social insurance and voluntary social insurance. Compulsory social insurance applies to all employees and employers in organizations and businesses, while voluntary social insurance applies to freelancers who can choose the appropriate contribution level based on their personal financial conditions.

Many people who contribute to insurance are now using the VssID application - the digital insurance application of Social Insurance Vietnam on mobile devices. This application helps participants easily access information about various types of insurance (social insurance, health insurance, unemployment insurance), actively look up medical facilities, insurance contribution codes, monitor the insurance contribution process, ... saving time going to insurance agencies. Download and register VssID with just a few simple steps.

=> Link Download VssID for iPhone

2. What does social insurance include?

Each type of social insurance (voluntary/compulsory) will have its own regimes. This issue is specifically regulated in Article 4 of the 2014 Social Insurance Law as follows:

Regimes of compulsory social insurance and voluntary social insurance

When meeting all the conditions to enjoy social insurance regimes as prescribed by the Social Insurance Law, participants in social insurance will have their regimes settled according to regulations.

3. Latest social insurance contribution rates

The law has different regulations on the social insurance contribution rates according to the type of social insurance that employees participate in. Specifically:

* Contribution rates of compulsory social insurance

Both employees and employers must contribute to social insurance according to the prescribed rates. This contribution is distributed according to the rates for each type of social insurance (retirement - survivorship; sickness - maternity; occupational accidents - occupational diseases), unemployment insurance; health insurance. Specifically:

- For Vietnamese employees

- For foreign employees

* Contribution rates of voluntary social insurance

Freelancers can base their monthly income as a basis for social insurance contributions and receive state support for contributions. The maximum social insurance contribution rate is 6,556,000 VND/month and the minimum is from 231,000 VND/month to 297,000 VND/month. Specifically as follows:

Contribution rates of voluntary social insurance for freelancers

Maximum and minimum contribution rates of voluntary social insurance

4. Benefits when participating in social insurance

Based on the social insurance regimes as prescribed by law mentioned in section 2, it can be seen that when participating in social insurance, employees will enjoy benefits related to social insurance, health insurance, and unemployment insurance. All of these benefits are regulated in Article 18 of the 2014 Social Insurance Law as follows:

5. Should you enroll in social insurance?

Should you enroll in voluntary social insurance? Why should you enroll in social insurance is one of the many questions that employees ask themselves before deciding to participate in this type of insurance. It can be seen that risks such as illness, unemployment, death, etc., are unpredictable, therefore, participating in social insurance is a useful solution for employees to prevent potential risks, thereby reducing difficulties, ensuring income, and stabilizing life.

After participating in social insurance, you will be able to look up information related to social insurance codes, insurance contribution process,..., and information related to health insurance, unemployment insurance. If you are not familiar with common ways to look up social insurance, you can refer to quick and simple lookup suggestions in this article by Mytour.vn.

6. Frequently asked questions about social insurance

6.1. Should you enroll in social insurance at age 40?

The law stipulates that the age to participate in social insurance is from 15 years old and there is no maximum age for enrolling in social insurance. Therefore, at the age of 40, you can still enroll in social insurance normally.

6.2. Should you enroll in social insurance or save money?

Because the purpose of insurance is to protect, prevent risks while the purpose of saving money is to accumulate, generate profits, it is very difficult to give an exact answer to the question of whether to participate in social insurance or save money.

You need to base on your personal saving needs, protection, and monthly financial situation to give the most suitable answer for yourself.

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Here is all the information about social insurance and its benefits, voluntary and compulsory social insurance contribution rates. Hopefully, this information has helped you find the answer to the questions: What is social insurance? Should you enroll in social insurance? and make a choice on the most suitable insurance participation for yourself.