[Vietnam Legal Updates] Social Insurance new policies in 2020

October 21, 2019

The following are new policies on social insurance and health insurance that have a great impact from 2020

1. By January 1, 2020, the social insurance agency must issue electronic health insurance cards to the insured (Based on Point g, Clause 5, Article 42 of the Decree. 146/2018 / ND-CP by the Government).

(Based on Point g, Clause 5, Article 42 of the Decree. 146/2018 / ND-CP by the Government).

2. From 2020, male workers who are full 55 years old and female workers who are full 50 years old, are eligible to receive pensions when their working capacity is reduced by 61% or more (Based on Point a, Clause 1, Article 55 of the Law on Social Insurance 2014).

Currently, male workers who are full 54 years old and female workers are full 49 years old are eligible for taking pensions when their working capacity is reduced by 61% or more.

3. Male workers who retire in 2020 must-have full 18 years of payment of social insurance premiums to enjoy pensions equal to 45% of the average monthly salary on which social insurance is based (Based on Point a, Clause 2, Article 56 of the Law on Social Insurance 2014).

4. If workers participating in social insurance from January 1, 2020, to December 31, 2024, the pensions and lump-sum allowance will be calculated based on the average monthly salary paid for social insurance of the last 20 years before retiring (Based on Clause 1, Article 62 of the Law on social insurance 2014).

5. By 2020, the social insurance book will be replaced by a social insurance card (Based on Clause 2, Article 96 of the Law on social insurance 2014).

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