On December 14, 2021 in Seoul, South Korea, under the witness of President of Congress Vuong Dinh Hue, Deputy Prime Minister Le Minh Khai and leaders of the National Assembly On behalf of the Government of Vietnam, Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung and Korean Minister of Health and Welfare Kwon Deok Cheol signed the agreement. on social insurance between Vietnam and Korea.
This is the first cooperation agreement between Vietnam and Korea in this field.
Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed a Bilateral Agreement on Social Insurance with the Korean Minister of health and Welfare Kwon Deok Cheol
In the context that Vietnam and Korea have established a strategic cooperative partnership, cooperation between two countries is increasingly developing in all fields, including the field of labor - employment. The number of Vietnamese workers going to work in Korea and Korean come to work in Vietnam is increasing. Employees are obligated to comply with the laws of their home country. Their legitimate rights and interests are also protected by the laws of the two countries, including the right and obligation to participate in social insurance.
From actual needs, in order to protect the interests of workers and enforce the two countries laws on social insurance, the Government of Vietnam and the Government of Korea have negotiated a bilateral Agreement on social insurance. The signed agreement will create favorable conditions for labor movement between the two countries and to protect the social insurance benefits for workers of the two countries.
The agreement aims to avoid paying social insurance twice with Vietnamese and Korean citizens when working in each country. Accordingly, employees who are Vietnamese and Korean citizens are only obliged to pay social insurance contributions in one country.
According to the Agreement, the time of payment of social insurance will be mutually recognized by both parties. The period of participation in social insurance contributions of employees who are Vietnamese citizens and Korean citizens will be counted as the total time that such employees have contributed to social insurance in Vietnam and Korea. This total time will be the basis for the Vietnam Social Insurance Fund and the Korean National Pension Fund to consider employees enjoying the pension scheme.
The level of benefits that the social insurance fund of each country pays to employees when they retire will be based on the time and the level of contribution that the employee has contributed to that fund. The calculation formula is regulated by the laws of each country.
This is the first cooperation agreement between Vietnam and Korea in the field of social insurance.
Specifically, the Agreement is mutually agreed upon by the two sides, consisting of 5 parts with 24 articles providing for the scope of application of regulations related to retirement and survivorship regimes according to Vietnam's Law on Social Insurance 2014 and the Law on Retirement national of Korea; stipulates the principle of equal treatment between Vietnamese and Korean citizens working in the other country's territory as with the citizens of the host country in determining the conditions for payment, enjoyment and payment of social insurance benefits.
One of the important contents of the Agreement is to stipulate how to calculate the time as a basis for determining the retirement regime for employees, which is the total time that the employee has contributed to social insurance in both countries (cumulative) and the calculation of insurance policies are based on the laws of each country.
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