I. Types and Social Insurance Schemes

1. Social Pension Allowance

A form of social insurance provided by the state for the elderly meeting the conditions under this Law, with the following benefits:

• Monthly social pension: Offered to elderly individuals without a retirement pension.
• Funeral allowance: A benefit for funeral expenses upon the death of the beneficiary.
• Health insurance: The state funds health insurance for social pension recipients.

2. Mandatory Social Insurance

Organized by the State and mandatory for eligible employees and employers, covering:

• Sickness: Benefits for employees unable to work due to illness.
• Maternity: Benefits for female employees during pregnancy, childbirth, or childcare.
• Retirement: Pension benefits for employees who reach retirement age and meet contribution requirements.
• Survivor’s Benefits: For the dependents of deceased employees.
• Occupational Accident and Disease Insurance: For work-related accidents or illnesses as per the Law on Occupational Safety and Health.

3. Voluntary Social Insurance

Organized by the State and available for Vietnamese citizens who choose to participate, selecting contribution levels and payment methods based on income. It covers:

• Maternity Benefits: For female participants during pregnancy and childbirth.
• Retirement: Provides pensions for those who meet age and contribution requirements.
• Survivor’s Benefits: For dependents of deceased participants.
• Occupational Accident Insurance: Coverage for work-related accidents for voluntary participants.

4. Unemployment Insurance (as per Employment Law)

Aimed at mandatory social insurance participants, it provides unemployment benefits to individuals who lose their jobs for a specified period.

5. Supplementary Pension Insurance

A voluntary insurance type with a market-based approach to supplement the mandatory retirement scheme, funded by contributions from employers or both employers and employees.

II. Principles of Social Insurance

The principles for social insurance, governing benefit levels, contributions, management, and implementation by the State, ensure that participant rights are fair, transparent, and simple, as follows:

1. Benefit levels (for both mandatory and voluntary insurance) are based on contributions and duration, with sharing among participants.
2. Contribution levels:

• Mandatory insurance is calculated on wage bases.
• Voluntary insurance is based on the income level chosen by the participant.

3. Mixed Insurance Participants: Individuals with both mandatory and voluntary insurance periods are entitled to benefits (allowances, pensions, survivor’s benefits) based on contributions to each type. Periods for which a lump-sum payment was made cannot be re-credited.
4. Social Insurance Fund Management: Managed transparently, used solely for designated purposes, and accounted independently per fund component.
5. Implementation Simplicity: Social insurance processes should be straightforward, ensuring timely benefits for participants.
6. Contribution Period for Eligibility: Retirement and survivor’s benefits are based on annual contribution periods, with fractional months (1-6 as half a year, 7-11 as a full year).
7. Benefit Resolution: Based on the legal provisions in effect at the time of benefit receipt.

III. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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