Proposing to add subjects participating in compulsory social insurance

The Ministry of Labor, Invalids and Social Affairs proposes to add subjects participating in compulsory social insurance, narrows the gap in pension, tightens regulations on receiving one-time social insurance …

The Ministry of Labor, Invalids and Social Affairs has just submitted a proposal to the Government to develop the Law on Social Insurance (amended) (social insurance). According to the Ministry of Labor, Invalids and Social Affairs, the current development of social insurance beneficiaries is below potential, many people are subject to compulsory social insurance but have not yet participated. The current law is “missing” many subjects Data from the General Statistics Office shows that in 2019, the whole country had more than 5.6 million individual business households, eight times the number of enterprises. According to the tax authorities, the country has more than 1.7 million times of households paying tax (households with turnover less than 100 million VND / year do not have to pay). However, this group is not subject to compulsory social insurance, so very few individual business householders participate in voluntary social insurance. According to data from the Ministry of Planning and Investment, in 2019 there are about 23,000 active cooperatives, attracting nearly six million members. In which 1.2 million people work in the cooperative area. But according to the report of the social insurance agency, there are nearly 7,000 cooperatives registered to participate in compulsory social insurance for about 41,000 employees. “Through a survey in some localities, many business managers, managers and executives of unpaid cooperatives wish to participate in compulsory social insurance …” – said by the Ministry of Labor, War Invalids and Social Affairs. Therefore, the Ministry of Labor, War Invalids and Social Affairs proposes to add compulsory social insurance participants for individual business householders, business managers, managers and cooperatives without pay. Specific provisions on compulsory social insurance for employees who work part-time and participate in compulsory social insurance with civil servants, public employees, part-time workers at commune level who also sign labor contracts. moving. According to the assessment of the Ministry of Labor, Invalids and Social Affairs, the above provision helps to increase the income of the social insurance fund in the short and medium term, while also increasing the expenditure from the social insurance fund in both short, medium and long term. The number of people who receive one-time social insurance to take care of their immediate life tends to increase. Photo: V.LONG Need to have a share in participating in social insurance According to the Ministry of Labor, Invalids and Social Affairs, the nature of risk sharing is only evident in sickness, maternity, labor accident, and occupational disease regimes. The pension policy is designed to be heavy on the principle of payment – benefit (pay more and enjoy more and vice versa) but lack attention to the principle of sharing between high and low salary people. According to data reported by the Vietnam Social Security, by the end of 2017, the average pension is 4.26 million VND / person / month. In which, the highest is 101.3 million VND / person / month, the lowest is 1.3 million VND / person / month (more than 4,100 people have this pension). The large gap in pension discourages people with low wages, leading to an increase in the number of people who want to receive one-time social insurance. In recent years, each year about 600,000 people enjoy one-time social insurance and leave the social insurance system. Therefore, this agency proposes to amend the method of calculating the average monthly salary paid for social insurance to calculate the pension for the employee, in the direction of the average monthly salary paid for social insurance of that person and the average monthly salary paid for social insurance. of people participating in social insurance to calculate their pensions. Thus, there will be a certain share between the high-paid and the low-paid. “The narrowing of the pension gap will encourage the participants of low-wage social insurance to reserve the time to pay social insurance to enjoy the pension instead of receiving one-time social insurance …” – The Ministry of Labor, War Invalids and Social Affairs assessed. The Ministry of Labor, Invalids and Social Affairs said that if allowed, the unit would be authorized by the Government to submit to the National Assembly for consideration and comments on the first bill at the second session of term XV (October 2022). Submit to the National Assembly for approval at the third session, term XV (May 2023). “Tighten” regulations on receiving social insurance once Currently, the condition to receive one-time social insurance is quite easy. Specifically, after one year of not participating in social insurance, the employee can receive one-time social insurance with the entitlement of 1.5 months of salary for each year participating in social insurance before 2014 and two months of salary for each participating year thereafter. Thus, with the contribution to the pension and death fund of 8% of the salary from the employee, the one year of paying 0.96 months of salary, the entitlement to two months’ salary upon receiving one-time social insurance is considered profitable. Along with having to wait too long to enjoy pension, employees will want to receive one-time social insurance to meet immediate needs. Therefore, it is necessary to adjust the regulations on one-time social insurance entitlement in the direction of having a roadmap to only deal with employees when they have reached the end of their working age but are not eligible for pensions without the need to continue paying. . Except for the case of going abroad to legally settle down or suffering from a dangerous disease and wishing to receive it once, or if the case is not yet over the working age, but receives one-time social insurance, the rate of entitlement is lower. In addition, the law also needs to amend the conditions for enjoying the pension in the direction of gradually reducing the number of years of minimum social insurance payment from 20 years to 15 years, towards 10 years with an appropriate calculated benefit level, creating conditions for The elderly, with a low number of years participating in social insurance, are entitled to pensions. 65% of Vietnamese elderly do not have a pension According to the Ministry of Labor, Invalids and Social Affairs, by the end of 2020, Vietnam has about 14.1 million people after the retirement age (55 years old for women, 60 years old and older for men). Of which, only over 3.1 million people are enjoying the pension (accounting for 22.1%) and 1.8 million people are enjoying the retirement allowance. There are still about 9.2 million people after the retirement age (accounting for 65%) who have not participated in insurance or any other social security layer.