We will review the basic similarities and differences between compulsory social insurance and voluntary social insurance.

The basic similarity between these two types of insurance is that it is organized and managed by the state, with the insurance premium rate is not more than 20 times the basic salary.

As for the difference, we need to consider the following four basic contents:

The first,

The voluntary social insurance participants are Vietnamese citizens aged full 15 years or older.

The compulsory social insurance participants are persons working under labor contracts with a term full 1 month or more at enterprises, state agencies.

The second,

The monthly premium equals 22% of the monthly income decided by the voluntary social insurance participant but not less than the basic salary. The basic pay rate shall be VND 1,490,000/month.

As for compulsory social insurance: Employees pay 8%, enterprises pay 14% of their monthly salary, and other allowances is prescribed by compulsory social insurance.

The third

The participant in voluntary social insurance may choose one of the following payment methods: every month, every 3 months, every 6 months, annual payment or lump sum payment for multiple years but not exceeding 5 year per payment. Lump sum payment for remaining years shall apply to the participant in social insurance who has reached the statutory retirement age but his/her payment period of social insurance contributions lacks 10 years or less.

The participant in compulsory social insurance makes monthly payment. For employees that enterprise send to work aboard may choose one of the following payment methods: every month, every 3 months, every 6 months or every 12 months or in a lump sum within the time limit stated in the contracts.

The fourth

Voluntary social insurance will pay the insurance participants according to the retirement and survivorship allowance regimes.

Compulsory social insurance will pay participants according to regimes: retirement, survivorship, sickness, maternity, labor accident and occupational disease.

Why does paying compulsory social insurance get health insurance while voluntary social insurance does not have health insurance attached? Because, when you participate in compulsory social insurance, not only must you pay compulsory social insurance but also businesses have to pay 3% of health insurance and employees pay 1.5% of health insurance. For voluntary social insurance, you only pay it.

If voluntary social insurance participants are interested in health insurance, they should contact the local social insurance agency to participate in household health insurance. Household holding health insurance policy includes all of the persons who register one lawful place of residence as their permanent or temporary residence in compliance with regulations of law.

In this topic, we share more about household health insurance premiums for your reference as follows:

Monthly household health insurance contribution rates shall be subject to the following regulations: The first policyholder shall be required to pay 4.5% of the base pay rate; the second, third and fourth policyholder shall be required to pay 70%, 60% and 50%, respectively, of the contribution rate of the first policyholder; the fifth and subsequent policyholder shall be required to pay 40% of the contribution rate of the first policyholder.

The current monthly base salary is VND 1,490,000 per month. Therefore, the household health insurance premium rate in 2022 is as follows:

The first policyholder will pay an amount of VND 67,015 per month equivalent to VND 804,600 per annum.

The second policyholder will pay an amount of VND 46,945 per month equivalent to VND 563,220 per annum.

The third policyholder will pay an amount of VND 40,230 per month equivalent to VND 482,760 per annum.

The fourth policyholder will pay an amount of VND 33,525 per month equivalent to VND 402,300 per annum.

The fifth and subsequent policyholder will pay an amount of VND 26,820 per month equivalent to VND 321,840 per annum.