Social Insurance Law Amendments: Constructing Equitable, Fair, Shared, and Sustainable Systems

08/11/2023 03:30 PM

On November 2nd, at the National Assembly House, within the framework of the 6th session, the National Assembly listened to Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung presenting the Proposal and Chairwoman of the Committee on Social Affairs Nguyen Thuy Anh presenting the Evaluation Report on the amended Social Insurance Law project.

Standing Vice Chairman of the National Assembly - Tran Thanh Man - chaired the session

Acting on behalf of the Prime Minister, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung stated that the amended Social Insurance Law project was developed to ensure social security for citizens as stipulated by the Constitution. It aimed to fundamentally address existing issues and shortcomings arising from practical experiences while expanding and increasing rights and benefits to attract more laborers to participate in social insurance.

Minister Dao Ngoc Dung mentioned that the draft law adhered to five policies approved by the National Assembly, including: Establishing a flexible and multi-tiered social insurance system; Expanding the coverage of participants; Broadening the scope of beneficiaries (retirement pension, monthly social insurance, and social insurance benefits); Adding regulations on revenue management and social insurance contributions; Diversifying the list and structure of social insurance fund investments based on the principles of safety, sustainability, and efficiency.

Building upon these policies, the draft law specifies 11 major provisions, namely: Adding social retirement benefits to establish a multi-tiered SI system; Expanding mandatory participation in SI; Supplementing entitlements for sickness, maternity benefits for non-professional workers in communes, wards, and towns; Adding maternity benefits to voluntary SI policies; Reducing the minimum years of SI contribution required to receive monthly retirement pensions from 20 years to 15 years; Amending the regulations for one-time SI benefits; Supplementing revenue management and SI contribution rules to address issues of evasion; Amending mandatory SI contribution bases; Modifying regulations linked to state salary areas in line with Resolution No. 27-NQ/TW; Amending and supplementing the diversification of the SI fund investment list and structure based on the principles of safety, sustainability, and efficiency; Addressing SI management costs.

In terms of adding social retirement benefits to establish a multi-tiered social insurance system in line with Resolution No. 28-NQ/TW, Minister Dao Ngoc Dung clarified that the draft law gradually reduces the age for receiving social retirement benefits to match the state budget's capacity, institutionalizing the Party's direction as stipulated in Resolution No. 28-NQ/TW.

Minister of the Ministry of Labor, Invalids, and Social Affairs Dao Ngoc Dung presents the Proposal (Photo

Regarding the reduction of the minimum contribution period for retirement pensions from 20 to 15 years to increase the number of pension beneficiaries, the Minister mentioned that according to the social insurance principles and international norms, individuals must fulfill both retirement age and minimum social insurance contribution time conditions to receive a pension.

It is necessary to anticipate situations that arise during the policy implementation process

Presenting the Evaluation Report on the amended Social Insurance Law project, Chairwoman of the National Assembly's Committee of Social Affairs, Nguyen Thuy Anh, affirmed the Committee's alignment with the project's objectives and the guiding viewpoints outlined in the Government's Proposal. She emphasized the need for the Social Insurance Law to reflect the historical development of social insurance policies, societal psychology, demographics, public health, based on scientific grounds, practical assessment, detailed calculations, high predictability, and legal standardization of social insurance policies and laws.

Chairwoman of the National Assembly's Committee of Social Affairs, Nguyen Thuy Anh, presented the Verification Report (Photo

The basic draft law aligns with the Party's principles and directions, the spirit of the Constitution, ensuring uniformity and consistency within the legal system, compatibility with relevant international treaties. The Committee suggested thorough and comprehensive evaluations of the relationship between the Social Insurance Law and adjusted laws concerning social insurance policies (Employment Law, Occupational Safety and Health Law, Elderly Law, etc.), and clearer explanations regarding compatibility with the International Labor Organization Convention 102, scheduled for parliamentary approval soon, and harmonization with related provisions in bilateral agreements, new-generation free trade agreements.

Regarding the addition of 'social retirement benefits,' the Social Affairs Committee concurred with the supplementation of social retirement benefit tiers as proposed by the Government, in line with the spirit of Resolution No. 28, serving as one of the contributing measures to expand the coverage of diverse retirement schemes. These schemes are based not only on individual contributions but also on state support (non-contributory) toward the goal of universal social insurance coverage.

However, the Committee suggested thorough assessments by the drafting body concerning the impact of social retirement benefit regulations on the state budget, the inclusion of subjects under adjustment and application from the Elderly Law to this project, and their effects on encouraging voluntary social insurance participation. They recommended clear regulations on fund transfers and payments, specifying healthcare insurance expenditure, and flexible provisions to mobilize social resources for this matter./.