Social insurance book is a document recording the employee’s participation in social insurance as the basis for settling social insurance regimes. However, due to regulations that do not strictly require employees to receive social insurance books to receive and enjoy benefits, it has created a situation of buying and selling social insurance books on the market to enjoy the difference in benefits, create instability in the system.
In Vietnam, the situation of buying and selling social insurance books is still happening regularly, with the number and severity of violations increasing year by year.
It is known that the main reason for the sale and purchase of social insurance books comes from the problem surrounding the lump-sum social insurance regime. Currently, according to the provisions of the Law on Social Insurance of Vietnam, if an employee wants to withdraw lump-sum social insurance, in addition to the condition that he/she has not participated full 20 years of social insurance, the employee also needs to not participating social insurance (Both voluntary and compulsory) within 1 year to be eligible to withdraw.
Because the one-year waiting period is so long, employees who urgently need money often take extreme options because they have no other choices.
One of the options is to borrow black credit to cover the need, but this method has many serious consequences that nearly every employee knows. The second most popular option for employees who have paid social insurance premiums for many years is to sell their social insurance books to a third party, in exchange for a smaller but fast payment.
Specifically, the employee sells the insurance book to another party with an average value ranging from 30% to 70% of the value of the lump-sum social insurance amount. The buyer will immediately transfer the money to the seller, and at the same time make a contract that the employee must absolutely not go to work, pay new social insurance within 1 year from the date of payment between the two parties so that the buyer can wait 1 year and withdrawal, in the form of authorization.
If the agreement is canceled after receiving money such as returning to work, paying social insurance, the employee may face extreme measures that the buyer is willing to do, similar to the black credit lenders because the nature of these two types is not too different, both are outsiders living on the basis of extracting money from genuine employees.
Because the social insurance book is not an asset, according to the 2015 Penal Code (amended and supplemented in 2017), the parties are not allowed to buy, sell or pledge social insurance books. Therefore, both the employee and the party who buys the social insurance book to take benefits of the difference are actually the parties that violate the law.
However, authorizing another person to withdraw social insurance is not uncommon, so it is difficult for competent authorities to prevent this situation. Because, there are many cases where employees have to authorize their children, friends and relatives to withdraw lump-sum social insurance because they are no longer in health to go to the office.
In the short term, it is expected that the competent authorities will not be able to completely solve the situation of buying and selling social insurance books for profit because this is an agreement between two subjects and the degree of violations are somewhat lighter than black credit.
The draft amended and supplemented Law on Social Insurance recently does not contain any prohibition on the act of buying and selling social insurance books.
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