According to the report of the National Assembly Standing Committee, the draft Law has been revised, explained, and amended with the following major contents:
Replacing "basic salary" with "reference level"
The government has proposed adding regulations on the concept of "reference level" to replace the "basic salary" as a basis and supplementing regulations on this concept in the draft Law.
Since this is a new concept, the National Assembly Standing Committee recommends that the government continue to assess the impact and study the development of specific principles to determine the reference level, to be implemented from July 1, 2024, during the wage reform, as well as when the Law takes effect.
The Committee also requests a thorough review to supplement all transitional regulations in related legal policies concerning the "basic salary," which will be abolished from July 1, 2024, upon the implementation of the wage reform.
Subsequently, new regulations will be issued according to the authority, procedures, and processes stipulated by the Law on Promulgation of Legal Documents.
One-time social insurance
The draft Law stipulates the conditions for one-time social insurance benefits for individuals who are not yet eligible for a pension, who cease contributions but have not completed 20 years of contributions, and who request one-time social insurance benefits, with two options:
Option 1: Employees are divided into two groups
Group 1 continues to apply the conditions for one-time social insurance benefits as stipulated in Resolution No. 93 of the National Assembly on the implementation of one-time social insurance benefits for employees. This means employees participating in social insurance before the Law takes effect (expected July 1, 2025) will be eligible for one-time benefits after 12 months of not participating in mandatory social insurance and not voluntarily participating in social insurance.
Compared to current regulations, the draft Law adds some benefits: if employees choose to preserve their insurance instead of receiving one-time social insurance, they can opt for a monthly allowance from their preserved amount from the retirement age until before the age for social pension benefits (75 years old) and other additional benefits during this time (such as state-funded health insurance contributions and funeral allowances if they die).
If employees do not receive the monthly allowance, they still have the right to receive one-time social insurance but will lose the opportunity for the monthly allowance and the additional benefits mentioned.
Group 2 includes employees who start participating in social insurance from the effective date of the Law onwards and are not eligible for the one-time social insurance benefit conditions.
Option 2: Employees can receive a part of the benefits, but not exceeding 50% of the total time contributed to the retirement and survivorship fund. The remaining contribution period will be preserved for the employee to continue participating and receiving social insurance benefits.
Regarding electronic transactions in the field of social insurance
The draft Law has added principle-based regulations on electronic transactions in the organization and implementation of social insurance. Specifically, it includes the addition of Clauses 10 and 11 to Article 4, explaining the terms related to electronic transactions in social insurance and unemployment insurance; adding the provision “From January 1, 2026, social insurance numbers will be issued electronically to social insurance participants. Paper-based social insurance books will only be issued upon the request of the employees” to Clause 2 of Article 24; adding Article 25 on electronic transactions in social insurance; and adding Clause 1 to Article 17, stipulating the responsibility of the social insurance agency to organize the evaluation of the satisfaction level of organizations and individuals regarding the implementation of social insurance, unemployment insurance, and health insurance policies.
Mandatory social insurance for household business owners
The government proposes that "household business owners of registered household businesses" are subject to mandatory social insurance participation.
The National Assembly Standing Committee has directed amendments to stipulate that only "household business owners of registered household businesses" are subject to mandatory social insurance participation.
Additionally, the National Assembly Standing Committee has directed amendments to the transitional provisions of the draft Law, ensuring that "household business owners who have contributed to mandatory social insurance before this Law takes effect will have their social insurance benefits determined by the government."
Moreover, the Committee urges the government to promptly issue documents to timely address the benefits for these subjects during the period before the Law takes effect, ensuring the rights of household business owners who have participated in mandatory social insurance before the Law takes effect.
