Why do young workers rush for one-time social insurance withdrawal?

VCN - Due to the influence of Covid-19 and the change of the policy on retirement age, the status of receiving one-time social insurance payments in some localities tends to increase.
4315-4501-18-4133-bhxh
Employees receive one-time social insurance at Cu Chi district social insurance agency. Photo: Pham Thu

Age pressure

After quitting to receive unemployment insurance benefits for a year, Tran Dinh Thien, 41, a mechanical engineer living in Binh Thanh district, decided to apply for one-time social insurance despite having participated in social insurance for 15 years to cover immediate life needs while not yet applying for a new job.

Similarly, present at the social insurance agency of Thu Duc city, Hoang Lam Giang, a leather and footwear worker, said: “This year I am 37 years old, working as a worker and participating in social insurance for more than 17 years with an income of about VND11 million/month. Last year, because of the Covid-19 pandemic, the company let workers go. After being unemployed, I was also looking for a job to do part-time, making a little money to spend, but it is very difficult to find a stable job. Currently, my family of four depends on my husband's meager salary and my unemployment insurance allowance is not enough. Therefore, I decided to withdraw the social insurance I have been involved for many years to support my family.”

According to statistics of Vietnam Social Insurance, in the 2014 - 2020 period, the social insurance agency has settled to pay about 4.5 million people receiving social insurance.

On average, each year more than 600,000 people enjoy social insurance once, equivalent to the number of new participants every year.

In particular, in some localities with a large number of workers, in 2020, due to the Covid-19 pandemic, the number of people registered for one-time social insurance benefits tended to increase. For example, if in 2019, the Ho Chi Minh City Social Security resolved 96,399 dossiers for one-time social insurance payments, in 2020 it would be for 111,742 beneficiaries, an increase of 15,343 people.

Notably, people with more than 10 years of social insurance payment register for one-time social insurance payment and their age is also younger.

Phan Van Men, Director of Ho Chi Minh City Social Insurance, said that in 2015, there were only 8,275 profiles of people with more than 10 years of participation in social insurance registering for one-time social insurance payment (accounting for 11% of the total number of dossiers for one-time social insurance benefits) it will increase to 24,915 records by 2020 (22.3%). The average age of a one-time social insurance beneficiary in 2015 is 39.9 years old, by 2020 it will only be 35.4 years old.

In addition, in 2020, due to the influence of the Covid-19 pandemic, many workers lost their jobs and their lives were in difficult situations. However, in order to enjoy one-time social insurance, the employee has to wait after a year of leave. Taking advantage of this situation, many people presented tricks of buying and selling, pledging social insurance books in the form of authorizing to receive one-time replacement of social insurance. This behavior not only makes employees lose their benefits, but also increases the status of receiving one-time social insurance quickly.

Disadvantage of rights

According to current regulations, the condition for employees to enjoy one-time social insurance benefits is that after a year of leave, less than 20 years of paying social insurance and not continuing to pay social insurance within those 12 months.

Meanwhile, the change of policy on pension rates and the yearly schedule of increasing retirement age for both men and women makes young workers feel that the age eligibility for pension entitlement is difficult. Therefore, in many cases, the employee has more than 19 years of participation in social insurance, even has paid social insurance for 19 years and 11 months, but still decided to quit his job to be eligible for one-time social insurance.

However, there are also many cases where, instead of quickly looking for a new job to both earn income and continue to participate in social insurance, ensuring long-term security, they find another way to receive benefits. Times to satisfy immediate consumption needs, will continue to work after spending all the money. Even many people who have worked, they have agreed with their units that have not yet paid social insurance yet but wait a few more months until the employee receives the one-off benefit before completing a new dossier.

However, withdrawing social insurance once, the employee will suffer many disadvantages in terms of benefits such as no longer being in the social insurance system organized, implemented and protected by the state; at the same time, the employee loses the opportunity to enjoy his pension - a stable source of income in old age. The amount received is less than the amount paid to the social insurance fund as well as losing money on death, greatly affecting the social security system.

To limit the one-time social insurance, to help employees not leave the safety net, Phan Van Men, Director of Ho Chi Minh City Social Insurance, said that it is necessary to focus on communication so that policies and regulations related to social insurance are closer to the workers. From there, contributing to helping employees to be aware of and have a correct and comprehensive view of the social security policies that the State wants to aim for and bring to the people through policies and regimes on social insurance.

In addition, it is necessary to adjust a number of related policies such as there should be a regulation to gradually increase the time to enjoy one-time social insurance benefits after resignation according to the schedule; add entitlements to increase the attractiveness of voluntary social insurance.

In the conditions to enjoy one-time social insurance, it is necessary to consider removing the provision on the condition of not being able to self-service for employees suffering from life-threatening diseases, or having reduced health of 81% or more, creating favorable conditions for participants to enjoy one-time social insurance payment.

By Thu Diu/ Huu Tuc

Related News

Transparent information protects consumer rights

Transparent information protects consumer rights

VCN - Mr. Vu Van Trung, Vice Chairman of the Vietnam Consumer Protection Association, talked about the issue of consumer protection when the Law on Consumer Rights Protection (amended) will take effect from July 1, 2019. 2024 is here.
Nearly 20 thousand businesses are newly established and return to operation every month

Nearly 20 thousand businesses are newly established and return to operation every month

VCN - According to General Statistics Office, in March, the whole country had 14.1 thousand newly established enterprises with a registered capital of VND113.5 trillion and 104.4 thousand employees registered, an increase of 64.3% in the number of businesses, a rise of 68.7% in registered capital and growing 105.2% in the number of employees compared to February 2024.
When will Covid-19 vaccine fund be closed?

When will Covid-19 vaccine fund be closed?

VCN – This content was mentioned at a press conference held by the Ministry of Finance on January 9.
Many challenges for economic policy after Covid-19

Many challenges for economic policy after Covid-19

VCN - In 2022, Vietnam has implemented an unprecedented series of fiscal policies to recover and develop socio-economically after the Covid-19 pandemic. However, in the context of rapidly changing world and domestic situations, with potential risks that are difficult to predict, economic policies need to be flexible and adjusted appropriately in order to promote strengths, and effectively mobilize and allocate resources for socio-economic growth.

Latest News

Year-end stimulus expected to boost economic growth

Year-end stimulus expected to boost economic growth

A series of year-end stimulus solutions is expected to spur Việt Nam’s economy to achieve the GDP growth target of over 7 per cent this year.
Enterprises focus on Tet care for employees

Enterprises focus on Tet care for employees

VCN - Tet bonuses are always an issue that receives special attention from employees at the end of each year. This year, the economy is facing many difficulties, many enterprises in the southern provinces have announced Tet bonuses, reflecting their tireless efforts to ensure the rights of employees.
Experts point out economic growth drivers, challenges for next year

Experts point out economic growth drivers, challenges for next year

Several growth drivers are in place to help Việt Nam achieve its GDP growth rate goal of 6.5-7 per cent next year, but rapid and strong international fluctuations remain challenges to watch out for.
Việt Nam’s GDP growth to outpace region peers: Oxford Economics

Việt Nam’s GDP growth to outpace region peers: Oxford Economics

Việt Nam will be the standout among the top six ASEAN economies (ASEAN-6), growing at a faster pace relative to its peers during the next few years, according to the Oxford Economics, a global economic advisory firm.

More News

PM asks efforts to achieve more than 8 per cent economic growth in 2025

PM asks efforts to achieve more than 8 per cent economic growth in 2025

Prime Minister Phạn Minh Chính has issued Official Dispatch No 137/CĐ-TTg on Friday on accelerating economic growth next year.
Việt Nam

Việt Nam's administrative restructuring will not impact foreign investors, says Foreign Ministry

Under the restructuring roadmap, the government will retain eight ministries and agencies but streamline their internal structures. For the remaining 14, the government will carry out reorganisation and mergers to reduce the number of administrative bodies.
Vietnam’s GDP growth to outpace region peers: Oxford Economics

Vietnam’s GDP growth to outpace region peers: Oxford Economics

Vietnam will be the standout among the top six ASEAN economies (ASEAN-6), growing at a faster pace relative to its peers during the next few years, according to the Oxford Economics, a global economic advisory firm.
Government Party Organisation must be elite, streamlined, ensure effective operations: PM

Government Party Organisation must be elite, streamlined, ensure effective operations: PM

Prime Minister Pham Minh Chinh, head of the Government Steering Committee for summarising the implementation of Resolution 18-NQ/TW of the 12th Party Central Committee, which seeks to streamline the political system for greater efficiency and effectiveness, chaired the fifth meeting of the committee in Hanoi on December 19.
Vietnam among Asia’s 15 largest economies

Vietnam among Asia’s 15 largest economies

The statistical visualisation platform Seasia Stats recently ranked Vietnam among the top 15 economies in Asia, with projected economic output reaching some 506 billion USD in 2025.
Chinese media praises Vietnam’s economic achievements, outlook

Chinese media praises Vietnam’s economic achievements, outlook

Chinese media outlets, including The Paper, CRI, Sohu, Sina, the Guangdong E-Commerce Association's website, and BWC, have published numerous reports and analyses highlighting Vietnam’s remarkable economic achievements in 2024 and its promising outlook for 2025.
Vietnam International Defence Expo 2024 opens

Vietnam International Defence Expo 2024 opens

The Vietnam International Defence Expo 2024 is due to kick off on December 19 morning at Gia Lam airport in Hanoi, gathering more than 200 units and enterprises from over 30 countries worldwide.
Vietnam sees growing number of Chinese investors: forum

Vietnam sees growing number of Chinese investors: forum

With sustained economic growth over years, Vietnam continues to impress and attract an increasing number of Chinese investors, participants said at an investment and trade forum between Ho Chi Minh City and China’s Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in the southern economic hub on December 17.
Border gate planning: Issues for Lang Son

Border gate planning: Issues for Lang Son

VCN - In order to exploit and promote the potential and economic strengths of border gates, helping to realize the aspiration of turning Lang Son into a "green border city" with a "border gate urban area", the requirements for openness and connectivity in border gate planning need to be clearly oriented, allocated and used effectively. In particular, the planning of border gate areas must be associated with the goal of digital transformation, in which human resources, equipment and infrastructure are prioritized.
Read More

Your care

Latest Most read
Year-end stimulus expected to boost economic growth

Year-end stimulus expected to boost economic growth

A series of year-end stimulus solutions is expected to spur Việt Nam’s economy to achieve the GDP growth target of over 7 per cent this year.
Enterprises focus on Tet care for employees

Enterprises focus on Tet care for employees

VCN - Tet bonuses are always an issue that receives special attention from employees at the end of each year. This year, the economy is facing many difficulties, many enterprises in the southern provinces have announced Tet bonuses, reflecting their tirel
Experts point out economic growth drivers, challenges for next year

Experts point out economic growth drivers, challenges for next year

Several growth drivers are in place to help Việt Nam achieve its GDP growth rate goal of 6.5-7 per cent next year, but rapid and strong international fluctuations remain challenges to watch out for.
Việt Nam’s GDP growth to outpace region peers: Oxford Economics

Việt Nam’s GDP growth to outpace region peers: Oxford Economics

Việt Nam will be the standout among the top six ASEAN economies (ASEAN-6), growing at a faster pace relative to its peers during the next few years, according to the Oxford Economics, a global economic advisory firm.
PM asks efforts to achieve more than 8 per cent economic growth in 2025

PM asks efforts to achieve more than 8 per cent economic growth in 2025

Prime Minister Phạn Minh Chính has issued Official Dispatch No 137/CĐ-TTg on Friday on accelerating economic growth next year.
Mobile Version