According to Vietnam Social Insurance, the number of people participating in voluntary social insurance has grown quite impressively, especially in the past two years (2018-2019). What solutions has the social insurance industry implemented to achieve this result?
– The voluntary social insurance policy has been implemented since 2008 to create opportunities for all employees in the informal sector to participate in social insurance. After 10 years, the number of people participating in voluntary social insurance has not yet grown commensurate with its potential. With determination to bring Resolution 28-NQ/TU in particular and social security policies in general to life, in recent times, Vietnam Social Security has made efforts, implemented many solutions and achieved positive results. To achieve the above results is because currently, there is no age limit to participate in voluntary social insurance, just Vietnamese citisens from a full 15 years of age with the diversified and flexible methods of payment, extending closing time. The regulation of income as a basis for paying voluntary social insurance is also more appropriate. From January 1, 2018, voluntary social insurance participants are also supported by the State with a percentage of the monthly social insurance premium according to the poverty standard of rural areas.
Second, in terms of implementation, Vietnam Social Security has strengthened its coordination with relevant agencies and made efforts to implement many synchronous solutions, such as actively participating in proposing and perfecting policies to suit the practical situation; searching for solutions, innovating management methods; reforming administrative procedures and applying information technology to create favourable conditions for participants and beneficiaries of policies.
However, according to statistics, nearly 99% of the workforce in the informal sector has not participated in voluntary social insurance, which is a big problem to mobilise all people to participate in ensuring the goal of universal social insurance.
The informal labour sector is the largest and most important “space” in the development of voluntary social insurance. However, the typical conditions of this area, namely low and precarious income of workers, will also be a barrier and a big challenge. In the coming time, what plans and solutions will Vietnam Social Security implement?
– Resolution 28-N/TU has always been identified as a guideline for all activities of the social insurance industry, of which, expanding the coverage of social insurance is an immediate and long-term goal towards universal social insurance, ensuring social security for all workers. However, the development of social insurance, especially voluntary social insurance, is facing many difficulties and challenges.
Currently, most people do not have complete information about the voluntary social insurance policy. People often compare, compulsory social insurance has five regimes, but voluntary social insurance has only two regimes: retirement and death. However, many people do not know, enjoy five benefits because the participants of social insurance are required to pay for 5 regimes, 2 benefits because people only pay for two benefits. Meanwhile, if you contribute all 5 regimes, with freelance workers, without the contribution of the business, it will be a big burden.
Regarding voluntary social insurance benefits, many people think that it is not attractive, not equal to savings. While with a simple calculation such as if people pay voluntary social insurance 22% above 700,000 VND of the monthly poverty line, within 20 years when men are 60 years old, women are a full 55 years old, they will receive a monthly pension get 400,000 dong, much larger than the monthly payment of 154,000 dong and this is also greater than the amount of State subsidy of 270,000 VND/month for people aged 80 years. But this amount, people enjoy from 55, 60 years old and do not have to wait until 80 to receive social benefits. In addition, this pension is adjusted to increase according to the State’s salary policy. Only a simple calculation can see the voluntary social insurance policy brings great benefits to participants.
In the short term, the social insurance industry will focus on building people’s confidence in the social insurance policy by focusing on comprehensively renovating the content, form and methods of social insurance propaganda. In particular, attaching importance to strengthening coordination with ministries, branches, media agencies, news agencies, newspapers, party committees and authorities at all levels to promote communication in various forms endowed with modernity. Thereby, helping people and employees understand clearly the rights and benefits of participating in social insurance based on being properly, fully and deeply aware of the Party’s undertakings and views, the State’s policies and laws on social insurance, from there, creating consensus and actively participating.
In addition, Vietnam Social Security continues to propose and recommend the improvement of the legal system on social insurance to increase attractiveness and more favourable conditions for participants. In which, proposals and recommendations: amending regulations on conditions and the time of voluntary social insurance payment to enjoy pensions, combined with adjusting calculation of pension entitlement; increasing and more flexible adjustment of the State’s support to voluntary social insurance participants, especially farmers, informal workers who are not of poor and near-poor households to increase the level of to attract and encourage an increase in the number of people participating in voluntary social insurance; set the age conditions to enjoy pensions between men and women appropriately to encourage farmers and workers in the informal sector to participate in voluntary social insurance.
At the same time, improving service quality so people not only have confidence in the policy but also have absolute confidence in the officials, civil servants, public employees and the employees of the social insurance industry.
Recently, many voters want to know about solutions that will be applied by the social insurance industry to continue to manage effectively and ensure growth of the social insurance fund. The safe and effective management and operation of the Social Insurance Fund is also an important factor in strengthening people’s confidence in the policy. Can you tell us more about this?
– The Social Insurance and Health Insurance Fund (HI) is always publicly and transparently managed under the close supervision of the National Assembly, the Government, the Vietnam Social Insurance Management Council and relevant agencies. The results of annual inspection and audit show the management and use of the social insurance and health insurance fund always ensure compliance with provisions of the law, effectively and economically. The scale of insurance funds has increased year by year, affirming their sustainability and ensuring a balance in the long term. In the operation of the Social Insurance Fund, the payment of benefits for participants is always guaranteed and increases each year. Currently, on average, each month, more than 3 million people are paid a monthly pension and social insurance benefits by the social insurance agency with the payment of tens of thousands of billions of dong. Therefore, the National Assembly, the Government, the Management Board of VSS, employees and the people have become more and more assured and confident in the Vietnam Social Security to perform their duties.
To ensure the sustainability of the Social Insurance and Health Insurance Fund in the coming time, the social insurance industry needs to develop and rapidly increase coverage of social insurance and health insurance towards universal social insurance.
At the same time, strengthening inspection and examination contributes to reduce arrears, evasion social insurance and health insurance contributions; so employees, when participating in the labour market, have the responsibility to participate, but also have the right to participate.
Continue to research and innovate the investment form of the fund’s financial resources for effectively preserving and developing the fund’s financial resources in the direction of diversifying the portfolio and investment structure of the social insurance fund according to the principles of Safe, sustainable and efficient. In particular, prioritising investment in government bonds, especially long-term government bonds, researching step by step expanding into scalable, highly profitable, safe and sustainable fields.
By XuanThao/ HuuTuc
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