National Assembly passes revised Social Insurance Law restricting lump sum withdrawals

June 29, 2024 - 15:15
The provision regarding one-time withdrawals of social security benefits also received 93.83 per cent of the NA's approval.
The NA passes the revised Social Insurance Law on Saturday. — VNA/VNS Photo An Văn Đăng

HÀ NỘI — The National Assembly (NA) passed the revised Social Insurance Law on Saturday, which will take effect on July 1, 2025.

The revised law passed with 454 out of 465 deputies in favour, representing 93.42 per cent of the NA.

Earlier, a specific provision of the law regarding one-time withdrawals of social security benefits also received 93.83 per cent of the NA's approval.

Under the provision, individuals who cease participation in social security can only be entitled to one-time social security payment if they fall into one of the following categories:

They have reached the age of retirement but have not yet paid 15 years of social security contributions; they go abroad to settle permanently; they suffer from one of the following diseases: cancer, paralysis, severe cirrhosis, severe tuberculosis and AIDS; they have a work capacity reduction of 81 per cent or higher; or they are classified as severely disabled.

Nguyễn Thúy Anh, Chairman of the NA's Social Affairs Committee, said the provision aims to approach international standards and adapt to Việt Nam's rapidly aging population.

"The revised law will only enable one-time social security payment under certain circumstances, increasing the number of people who remain in the social security system for long-term benefits," said Anh.

The NA's Standing Committee encouraged workers not to opt for one-time social security payment but rather stay in the system for long-term benefits.

The committee also urged the Government to launch communication campaigns to keep them well-informed about the advantages of monthly payments over one-time payments. — VNS