No choice left: Le Van Thanh, 39, looks dejected after waiting in line since 3 a.m. along with hundreds of others to withdraw social insurance premiums on December 8. "My savings are all gone, I need this withdrawal to take care of my children," he said. Photo by Thanh Tung
In Vietnam, workers with labor contracts of at least a year will be subject to compulsory social insurance payments. Their employers will extract fund from their monthly salaries to pay the social insurance. As per existing law, contracted laborers must pay social insurance for 20 years to get a pension when they retire. However, they have the right to withdraw all of it as long as they can prove they have been unemployed for at least one year. Such a withdrawal means they will have nothing left in the future for their retirement pension.
At least 41,500 have lost their jobs in 44 localities since the middle of this year, according to the Vietnam General Confederation of Labor.