One of the weeds policies that is useful to employees and helps maintain the relationship between employees and employers is called Social Insurance . Employers (including all employers in large, medium or small businesses) will have to pay an amount when the employee is sick or loses his/her job for some reason…
Therefore, social insurance (social insurance) is appeared to meet that need as well as bring useful weed policies for employees and help maintain and develop the relationship between employees – employers. So what is the new regime of social insurance in 2020? Let's immediately refer to the answer to that problem under the last article Viecoi!
- The necessary concept to know about Social Insurance
- Outstanding functions of social insurance for employees
- Information about social insurance under the new regime in 2020
- Issues related to the issue of electronic health insurance cards (1 type of social insurance)
- The issue of conditions to meet the age of pension benefits of employees
- Change of conditions and level of pension calculation for male employees
- One-time benefits, pensions thanks to adjustment of average monthly salary
- Complete with electronic data
The necessary concept to know about Social Insurance
Based on the Law on Social Insurance 2014, social insurance is regulated with the concept in the English name of Social Insurance and helps to ensure the replacement or partial compensation of employees' income when they are reduced or lost income due to some good reason on the basis of payment to the social insurance fund.
Factors that help constitute social insurance in Vietnam:
– You're entitled to this regime.
– Fully meet the conditions set out to enjoy the social insurance regime
– Satisfy the right level of enjoying and the duration of benefits
The current social insurance benefits in accordance with the regulations of the relevant authorities: Sickness insurance; Occupational accidents and occupational diseases; Maternity; Retirement; Medical; Death
Social insurance is a type organized by the State that both employees and employers must participate in, there are 2 types of social insurance currently: Compulsory social insurance and voluntary social insurance (optional)
Outstanding functions of social insurance for employees
In fact, not all employees understand the benefits that social insurance brings to themselves and lead to concerns, heeds, and even no intention to participate in social insurance. In addition, part of the reason why workers think is that the cost of paying social insurance is quite high and brings nothing. But in fact, the issue of social insurance payment will help employees cover a lot of things.
Because social insurance as mentioned above, for example, helps employees ensure replacement, compensate for financial shortfalls when facing risks in life …
In addition, social insurance will help employees share income over a certain period of time. In a way, this function means that the employee will pay social insurance premiums to save for benefits when facing unforeseen risks or other problems such as maternity, unemployment or pension later,..
Information about social insurance under the new regime in 2020
Issues related to the issue of electronic health insurance cards (1 type of social insurance)
From January 1, 2020, social insurance agencies must issues electronic health insurance cards to those who have registered for Health Insurance under Points b, Clause 5, Article 42 of Decree No. 146/2018/ND-CP issued on October 17, 2018. This is a change that is evaluated and considered as one of the new and breakthrough steps in bringing more benefits in the process of managing and participating in health insurance.
Electronic health insurance card form will be issued from 01/01/2020 under the new regulations
The issue of conditions to meet the age of pension benefits of employees
From 2020 in Point a, Clause 1, Article 55 of the Law on Social Insurance of Vietnam issued in 2014, male employees aged 55 years and female employees aged 50 years old and their working capacity are reduced by 61% to enjoy pension. Current regulations mean that the working capacity decreases by 61% between the ages of 54 and 49. Thus, the age of enjoying the retirement benefits has increased by 1 year compared to the current one.
Change of conditions and level of pension calculation for male employees
Male employees who have been in social insurance for 18 years will be entitled to pension and the salary calculation will = 45% of the average monthly insurance premium
One-time benefits, pensions thanks to adjustment of average monthly salary
From 01/01/2020 to 31/12/2024, when calculating pensions, the calculateer will base on Clause 1, Article 62 of the Law on Social Insurance of Vietnam in 2014 and based on the average monthly salary of the last 20 years before retirement for employees participating in insurance. This is a new change that helps workers enjoy more benefits and higher in retirement.
Complete with electronic data
Catching up with modern technology, the management of Social Insurance will become quick and hassle-free with "piles" of paperwork through electronic data. From there, the data related to Social Insurance will be synchronized and updated in a timely manner as well as without missing any information. In addition, the competent authorities related to social insurance will also easily control and limit cases of fraud and profiteering.
Participants of social insurance as well as enterprises are obliged to pay social insurance premiums for employees and insurance agencies,… it is necessary to regularly update the latest changes in this regard to avoid unnecessary mistakes as well as be ready for a roadmap for transformation in accordance with the provisions of the Law on Social Insurance in Vietnam.