RECEIVING ONE-TIME SOCIAL INSURANCE, WHAT BENEFITS WILL EMPLOYEES LOSE?
Due to the negative impact of the Covid-19 pandemic on the labor market, the number of workers losing their jobs is increasing. To solve the immediate income problem, many workers who lost their jobs choose to receive one-time social insurance benefits. According to the Vietnam Social Security, employees will lose 05 important benefits below:
- Cannot accumulate the period of social insurance payment
After receiving one-time social insurance, the period of the social insurance payment in the future will not accumulate the previous period of participation but is considered as starting a new period. This affects the employee’s pension:
– Not entitled pension, so there is no income to ensure life in old age and loss of working capacity.
– Low pension: due to the short period of social insurance payment, the paid pension will be low, losing a stable financial source to support the life of employees when they retire.
- Benefits of health insurance card and funeral regime
After receiving one-time social insurance, employees will be limited in the benefits of health insurance card when they retire and funeral allowance when they unfortunately, pass away:
– During the period of pension enjoyment, employees are covered by the social insurance fund, free of charge of health insurance cards and fully entitled to medical examination and treatment benefits covered by health insurance. If the employee receives one-time social insurance, the benefits mentioned above will not be enjoyed.
– When a pensioner unfortunately dies, the family member responsible for the funeral will be entitled to a funeral allowance equal to 10 times the base salary at the time of the employee’s death. At the same time, relatives of the deceased will also receive a monthly survivor benefit.
- Losing the opportunity to reserve and accumulate social insurance contributions and many benefits for relatives
The amount of social insurance payment is considered as “savings”, not lost over time. Employees can make reservations and can continue to participate in social insurance in the future. During the reservation period, in the unfortunate event that the employee dies, their family is still entitled to the survivor benefit and funeral allowance.
- The disadvantage in the level of social insurance allowances
After receiving one-time social insurance, employees are much more disadvantaged. Because when paying social insurance, 22% of the salary on which social insurance premiums are based, will be paid to the retirement and survivor fund. So, the rate of contribution for this fund in a year is 2.64 months’ salary for social insurance contributions.
While the one-time social insurance benefit per year is equal to 1.5 months of the average salary participating in social insurance, applied to the time of payment of social insurance premiums before 2014 and equal to 2 months of the average salary participating in social insurance for the period from 2014 onwards.
- Pensioners will have a stable allowance and a more secure life than those who receive one-time social insurance
For one-time social insurance recipients, employees receive only one time and it is very easy to use up the old-age pension. In old age, labor depends on descendants and society.
When receiving pensions, participants of social insurance will enjoy a pension that is periodically adjusted according to the consumption index and economic situation. Therefore, workers will have a stable and satisfying allowance for life.
So, after leaving the job, which benefits should employees choose?
In order to solve the problems of loss of income during the difficult period of the Covid-19 epidemic, Vietnam Social Security advises that if workers are unfortunately unemployed, they should register for unemployment benefits, vocational training allowance or register to receive support from the Government’s social security package instead of one-time social insurance benefits.