03 new policies on compulsory Social Insurance, Health Insurance from 2021 employees need to know
1. Increase the retirement age
Worker’s retirement age is expected to increase in 2021. From 01/01/2021, the worker’s retirement age will be specified as follows:
- The mandatory retirement age of male and female workers or employees in normal working condition will be 60 years and 3 months, and 55 years and 4 months, respectively
- Every year following 2021, 3 months and 4 months will be added, respectively, to the retirement age of male and female workers and employees to reach their mandatory retirement age. Accordingly, retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.
2. Change in regulations on pension rates
– For male workers:
- In case of retirement in 2021: Get 45% with full 19 years of social insurance payment (currently retired in 2020 get 45% of the full 18 years of social insurance payment);
- In case of retirement from 01/01/2022: Get 45% with full 20 years of social insurance payment.
- After that, for each additional year, the employee will get an additional rate at 2%; the maximum entitlement pension rate (%) is up to 75%.
– For female workers: Get 45% with full 15 years of social insurance payment, for each additional year of paying social insurance will get an additional rate at 2%; the maximum entitlement pension rate is up to 75%.
3. Changes in the rate of entitlement to health insurance when taking medical examination and treatment
From January 1, 2021, in case the person having the health insurance card does not take health check up at the correct level of hospital which is paid by the health insurance fund at the rate specified in Clause 1, Article 22 of the Law on Health Insurance (the rate of entitlement to medical examination at the right level), such person will be paid according to the following rate below:
- At central hospitals: 40% of inpatient treatment costs;
- At provincial hospitals: 100% of inpatient treatment costs which is effective from January 1, 2021 with nationwide range (currently there is only 60% of inpatient costs are paid in accordance with the stipulated health insurance rate).
- At district hospitals: 100% of medical care costs.
Legal grounds:
– Article 169 of the Labor Code 2019.
– Article 56 of the Law on Social Insurance 2014.
– Article 22 of Law on Health Insurance 2008 (amended by the Law on Health Insurance 2014).
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