Headlines 16/10/2018 14:06 CH

Amendments to regulations on compulsory SI contribution basis and rate

Trần Trang

On October 8, 2018, the Government issued the Resolution No. 125/NQ-CP on the plan of action for implementation of the Resolution No. 28-NQ/TW on reform of social security policies.

This Resolution includes amendments to the Law on Social Security as follows:

- Amending regulations on the compulsory SI contribution rate and basis to aim at expanding the SI coverage. 

- Reducing requirements concerning the minimum SI participation time for entitlement to retirement benefits.

- Adjusting the method for calculating retirement pensions according to the payment – entitlement and equality principles.

- Ensuring other persons are bound to participate in compulsory SI programs.

-Increasing interests for those who retain their SI participation time in order for them to be entitled to retirement benefits and decreasing interests for those who decide to receive one-off SI benefits.

- Adjusting the cumulative rate to reach the maximum rate of retirement pension entitlement in conformity with international conventions.

- Building a complete system of penalties for any violation against SI legislation, especially for SI contribution evasion, debts owed or profiteering.

The Resolution No. 125/NQ-CP enters into force from the signature date.

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