These findings will contribute significantly to advising policies on social, health and unemployment insurance, especially in developing voluntary social insurance and managing social security funds in Vietnam’s future.

The Swiss Federation boasts a well-integrated network of social insurance schemes. This comprehensive system safeguards individuals living and working in the country as well as their dependents, against financial risks that would be difficult to bear without this insurance.

Nguyen Van Cuong, Deputy Chair Commissioner of Viet Nam Social Security’s Board of Commissioners made the assessments after leading a delegation to Switzerland and Austria recently.

The delegation’s visit was to learn from international experiences in developing and expanding voluntary social insurance coverage, collaborating with agencies managing social security funds in both countries.

 The delegation works with the Director of External Affairs of Switzerland’s Federal Social Insurance Office in Switzerland

The delegation included Nguyen Ba Hoan, Deputy Minister of Labour, Invalids and Social Affairs, along with members of the Board of Commissioners and representatives from other agencies.

During their visit, the delegation presented Viet Nam's social security system and sought opportunities for collaboration on research and knowledge exchange.

In Switzerland, they met with representatives from the Vietnamese Embassy in Switzerland, the Swiss Federal Social Insurance Office, the Swiss Federal Compensation Office, the International Labour Organisation (ILO) and the International Social Security Association (ISSA).

Switzerland's social security system, structured around three pillars, offers comprehensive coverage for risks related to old age, death and disability.

The system ensures a basic standard of living for retirees who have contributed throughout their working years.

Specifically, the first pillar comprises a mandatory State pension scheme, aiming to cover basic living expenses.

The second pillar, also mandatory for salaried employees, requires contributions that aim to  maintain their pre-retirement standard of living by providing roughly 60 per cent of their income upon retirement.

The delegation meets with the Federal Compensation Office in Geneva in Switzerland

Pillars one and two are mandatory contributions managed by employers, while the third pillar involves voluntary personal plans with tax advantages, directly managed by insurance companies or banks.

Additionally, health insurance is compulsory for all residents in Switzerland staying longer than three months. It is largely privately funded and rarely by employers.

Accident insurance is mandatory for all gainfully employed individuals in Switzerland. It covers both workplace and non-work-related accidents. Other risks are typically insured under private health insurance.

Residents and workers in Switzerland are also covered for income loss due to military or civilian service, as well as during maternity and childcare leave.

The delegation at the International Labour Organisation (ILO), headquartered in Switzerland

Regarding unemployment benefits, those employed are insured under the unemployment insurance programme while self-employed individuals are not covered.

Family allowances serve as a contingency fund to offset family living costs.

Contributions for benefits are equally shared between employers and employees, with employers deducting employee contributions from salaries.

Exceptions include family allowances predominantly funded by employers; private health insurance, paid individually; and the voluntary third pillar supported by respective insurance companies.

It is worth noting that self-employed individuals contribute fully to the social security of the Switzerland.

 The delegation meets with Marcelo Abi-Ramia Caetano - Secretary General of the International Social Security Association (ISSA), headquartered in Switzerland

Currently, Switzerland has signed bilateral and multilateral social security agreements with EU and EFTA member states and other countries, ensuring equal treatment for citizens under each signatory nation's social security system.

Many international companies choose Switzerland as a base for their European or global cross-border activities due to favourable investment environments.

Swiss labour laws are known for their flexibility compared to other legal jurisdictions, prioritising fundamental principles of contract freedom, alongside minimum standards and social protection mechanisms provided by Swiss federal law.

Comprehensive social security system in Austria

Meanwhile, in the Republic of Austria, the delegations assessed that the social security system of Austria to be one of the most comprehensive and developed social security systems globally.

 The delegation poses for souvenir photo with the Vietnamese Embassy staff in the Federal Republic of Austria

The system aims to ensure every citizen enjoys rights to healthcare, retirement benefits and unemployment insurance.

The system demonstrates inclusivity, fairness and effectiveness in protecting rights and enhancing quality of life for its people (some similar benefits currently are also implemented by Viet Nam Social Security in Viet Nam).

Regarding health insurance, both labourers and dependents are mandated to participate, with insurance costs shared between employees and employers. Citizens receive basic medical services covering medical consultations, surgeries, medications and long-term care.

For retirement insurance, Austria has a three-pillar social security system.

The first pillar provides pension benefits to qualifying workers.

The second pillar is that employees contribute a portion of their monthly income to retirement funds.

The third pillar regulates that standard retirement age is 65 for men and 60 for women (it is set to increase the retirement age according to the roadmap).

Regarding unemployment insurance, both employees and employers contribute to the unemployment insurance fund; those who lose their jobs are entitled to unemployment benefits for a specified period, contingent on their previous work experience and salary. The system also offers training and retraining programmes to assist individuals in finding new employment.

 The delegation takes souvenir photos with representatives of the Austrian Federal Ministry for Social Affairs, Health, Care and Consumer Protection

In addition, the Austria's social security system also provides various other welfare benefits such as family allowances, disability benefits and housing allowances, aiming to support financially disadvantaged citizens and ensure a basic standard of living for all.

Management and organisation of Austria's social security system are overseen by Government agencies and non-profit organisations responsible for collecting contributions, managing funds and disbursing benefits to recipients.

Fundamental principles in Austria are that all labourers are automatically enrolled in the social security system from their first day of employment, regardless of initial conditions of their health status.

Between 2005 and 2014, an individual account system has been implemented to ensure fairness in pension pay-outs for recipients born from 1955 onwards.

Current pension calculations are based on the 65/45/80 formula (reaching 65 years old, having contributed for 45 years, with a replacement rate of 80 per cent); contributions amount to 22.8 per cent of income, with employees contributing 10.25 per cent and employers covering the remainder. Additionally, 7.8 per cent is allocated to individual accounts for current participants./.