PARTICIPATING IN VOLUNTARY SOCIAL INSURANCE ENTITLED TO FUNERAL ALLOWANCE OR SURVIVORSHIP ALLOWANCE

When employees participate in voluntary social insurance.

• About funeral allowance:

According to Point b, Clause 2, Article 8, Decree 134 / ND-CP dated 29/12/2015 providing for the conditions for entitlement to funeral allowance when: “Voluntary social insurance participants have the benefit period from full 60 months or more”.

If a voluntary social insurance participant chooses the one-time payment method for 05 years but unfortunately within less than 5 years, he/she dies, their relatives are not eligible for the funeral allowance.

• About one-time survivorship allowance:

At Point b, Clause 4, Article 7, Circular 01 / TT-BLDTBXH dated 18/02/2016 of the Ministry of Labor – Invalids and Social Affairs detailing and guiding the implementation of a number of articles of The Law on Voluntary Social Insurance states: “The one-time survivorship allowance rate is specified in Clause 2, Article 81 of the Law on Social Insurance”.

In Clause 2 Article 81, the Law on Social Insurance 2014 stipulates: “The one-time survivorship allowance rate for a relative of an employee who is paying social insurance or is reserving the time of social insurance payment is calculated according to the number of years of social insurance payment, each year is equal to 1.5 months of the average monthly income paid for social insurance, specified in Article 79 of this Law for the years of social insurance payment before 2014; equal to 02 months for the years of payment from 2014 onwards.

For employees who have paid social insurance premiums for less than one year, the one-time survivorship allowance equal to the paid amount but the maximum level is equal to 02 months of the average monthly income paid for social insurance; in case the employee has both the compulsory and voluntary social insurance payment period, the minimum level of entitlement to one-time survivorship allowance is equal to 3-month average salary and monthly income paid for social insurance.”

Thus, in this case, the relative of a voluntary social insurance participant will be entitled to a one-time survivorship allowance.