Withdrawing one-time social insurance benefits, losing the point of old age support

Withdrawing one-time social insurance benefits to solve immediate difficulties

The Northern region of Ho Chi Minh City (formerly Binh Duong province) developed concentrated industry with about 1.2 million workers, of which about 1 million people participated in social insurance. In recent years, many workers have lost their jobs and chose to withdraw social insurance at once because of difficulties.

At Binh Duong grassroots social insurance, dozens of workers come every day to learn about the procedure for withdrawing one-time social insurance benefits. Mr. N.T. H (33 years old, residing in Binh Duong ward) has been paying social insurance for 3 years, now quit his job, life is difficult, so he has to withdraw one-time social insurance benefits to get money to cover expenses. "My number of years of social insurance participation is also small. However, due to quitting my job, life is difficult, so I have to withdraw one-time social insurance benefits. I want to have a little money to cover expenses. Later, when I go back to work, I will continue to pay" - Mr. N.T. H shared.

Similarly, Ms. T.T. D.M (34 years old, residing in Vinh Tan ward) also chose to withdraw one-time social insurance because she needed money to cover living expenses.

At Ben Cat grassroots social insurance, there are also dozens of workers coming to carry out social insurance procedures, some people, although old, still go to withdraw social insurance once. That is the case of Mr. N.D. C (52 years old, residing in Chanh Phu Hoa ward, Ho Chi Minh City). "I am old now, I also want to continue contributing so that I can receive a pension later. However, after quitting my job at the company, I found a new job but could not get it. The companies all complained that I was old and did not hire me. Recently, life has become difficult again, so I have to withdraw social insurance once. I also know that I will be disadvantaged and in difficulty later, but I have to accept it" - Mr. N.D. C expressed.

Many disadvantages and consequences when withdrawing one-time social insurance

Receiving one-time social insurance benefits can help workers solve immediate difficulties, but leave many long-term consequences. Workers will gradually lose their income when they get old, leave the social security net and risk disadvantage when they reach retirement age.

This situation not only directly affects the rights of workers, but also impacts the goal of ensuring sustainable social security, especially in the context of population aging.

The Ho Chi Minh City Social Insurance Agency said that receiving one-time social insurance benefits will cause many disadvantages for workers. In the immediate future, the amount of money when receiving one-time social insurance benefits is much less than the amount of money already contributed to social insurance, specifically: one year of contribution level equals 22% x 12 months = 2.64 months of salary, while workers only receive one-time social insurance benefits corresponding to 1.5 months of salary for years contributed before 2014 and 2 months of salary for years contributed from 2014 onwards.

The time of social insurance contribution that has been calculated for one-time social insurance benefits will not be counted as the basis for enjoying other regimes. No longer in the social insurance system protected by the State. Employees must pay for medical examination and treatment costs themselves if they unfortunately get sick or have accidents during the waiting period for one-time social insurance benefits (12 months). Most importantly, employees will lose the opportunity to receive monthly pensions when they reach retirement age or are eligible for benefits but have low benefits due to being deducted from the time of one-time social insurance contribution received" - a representative of the Ho Chi Minh City Social Insurance agency said.

After receiving one-time social insurance benefits, employees also lose the opportunity to participate in health insurance for 5 consecutive years to enjoy benefits with high-tech medical services and expensive medicines. Lose the opportunity to be issued a free health insurance card throughout the retirement period for health care (with a benefit level of 95% of medical examination and treatment costs). Relatives are not entitled to funeral allowances and death benefits if social insurance participants unfortunately die early.

Workers should preserve their participation period or continue to pay social insurance to have the opportunity to enjoy retirement benefits, not receiving one-time social insurance contributes to ensuring social security for themselves, their families and society. Workers need to carefully consider "won" and "lost" when receiving one-time social insurance, avoiding immediate benefits but long-term disadvantages" - a leader of the Ho Chi Minh City Social Insurance agency said.