Labourers in the southern region wait for lump-sum social insurance withdrawals. — Photo baotintuc.vn

HÀ NỘI — The National Assembly will consider effective measures to prevent lump-sum social insurance withdrawals, which have increased in recent years, said Minister of Labour, Invalids and Social Affairs Đào Ngọc Dung.

According to the Ministry of Labour, Invalids and Social Affairs (MOLISA), before 2019, the number of people who claimed lump-sum social insurance withdrawals stood at about 500,000 per year. In 2022, nearly 900,000 people made the request.

The lump-sum social insurance withdrawal has become a trend in recent years. If this trend does not slow down, it will threaten social welfare insurance for the elderly and breaks down the sustainability of the social insurance system, according to Dung.

Most people who made withdrawal requests (up to 72 per cent) are labourers from the southern region. Low income and unstable lives are the reason for their choice.

The proposed amendment of social insurance law would not limit labourers’ rights but offer more benefits to social insurance members, he said.

Under the current law, employees working under normal conditions and having reached the law-prescribed retirement age would be entitled to a monthly pension if having paid compulsory or voluntary social insurance premiums for at least 20 years.

Many labourers, especially those in labour-intensive sectors like textiles, say they are unable to wait for 20 years.

Citing this fact, Dung said it was necessary to reduce the time for social insurance premium payment to under 15 years, and in the long run, 10 years to be consistent with international regulations.

Compared with the lump-sum social insurance withdrawal mechanism of other countries, Minister Dung quoted International Labour Organisation experts who said there was no single country that has an open social insurance withdrawal regulation like Việt Nam.

International practice only allows withdrawal for those who suffer from incurable diseases and move to live abroad. Việt Nam allows the freedom of lump-sum withdrawal. But he said it was a citizen's right, so it could not be banned.

Dr Bùi Sỹ Lợi, former vice chairman of the National Assembly’s Social Affairs Committee, said it was necessary to raise awareness of labourers on the values and meanings of social insurance, at the same time, offer supportive packages to help them solve difficulties in the short term.

The lump-sum withdrawal sometimes still could not help labourers afford expenses, he said, highlighting the need to offer preferential loans to labourers, have sustainable solutions for the labour market and support businesses to stabilise production.

Under the 2014 Law, an employee who has paid social insurance premiums for less than 20 years may request for a one-off payout of social insurance benefits after 12 months from the time he/she stops paying social insurance premiums.

The MOLISA proposes two options in the amended law to settle such requests.

The first option says that the employee may receive a full payout for the entire period of participating in social insurance and then would not be entitled to a monthly pension.

As per the second option, the employee would receive a one-off payment of benefits for at most half of the contribution period to the retirement and survivorship allowance fund. The remaining period would be reserved for the calculation of social insurance benefits when the employee reaches retirement age.

Lợi said the second option might help labourers get out of difficulties in the short term and ensure social welfare at the retirement age. But this option would require more explanation regarding strengths and weaknesses to gain public consensus. — VNS