Proposal to change the method of calculating social insurance contribution time to receive pensions

LƯƠNG HẠNH |

The Ministry of Home Affairs proposes detailed regulations on how to convert the monthly social insurance contribution time when calculating benefits, from 0.25 years to one year.

The Ministry of Home Affairs is seeking opinions on the draft Law amending and supplementing a number of articles of the Law on Social Insurance.

Notably, the draft Law amending and supplementing Clause 6, Article 5 of the 2024 Law on Social Insurance in the direction of adjusting the rounding of social insurance contribution time in cases where the benefit level is calculated with odd months.

Accordingly, the social insurance contribution period with odd months from 1 month to 3 months is calculated as a quarter (0.25) year, from 4 months to 6 months is calculated as half (0.5) year;

From 7 months to 9 months are counted as three-quarters (0.75) years, from 10 months to 11 months are counted as one (1) year.

The draft also stipulates that the minimum social insurance contribution period to determine the conditions for enjoying monthly pensions and survivor's allowances is calculated annually, of which one year must be 12 months.

According to the drafting agency, the addition of detailed regulations aims to clarify how to handle the part of the social insurance contribution period that has not been full years when calculating the benefits of participants.

In reality, in many cases, employees have social insurance contributions that do not match the round number of years. Clearly stipulating the conversion method helps the implementing agency have a unified basis when resolving benefits, and at the same time helps employees easily determine their rights.

The draft also distinguishes between determining the conditions for enjoyment and calculating the benefit level. Accordingly, the minimum social insurance contribution period to be eligible for monthly pension or survivor's allowance is still calculated annually, with the requirement that one year must be 12 months.

Meanwhile, when calculating the benefit level, the odd contribution period is converted according to specific milestones from 0.25 years to one year as proposed above.

In addition to regulations on the period of social insurance contribution with odd months, the draft also proposes to amend a number of contents related to social insurance participants, policies to support voluntary social insurance participants, the organization and operation of the Social Insurance Management Council, as well as the functions of the social insurance agency.

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