Informal workers are ensured under SI and HI policy (Illustrative image)

Social security gap is existing in informal worker

According to the National Statistics office’s (Ministry of Finance) report on population, labor, employment in Q4 and 2025 on  Jan, 5^th 2025, the number of informal worker is always consistently remained high, fluctuating from 33-35 millions, accounting for over 60%  labor force. In Q4/2025, Viet Nam had 33.1 million of informal worker (62.4% ). In fact, informal labor force is no longer temporary, they  become an essential part of the market economy.

Informal workers participate almost economic industries, especially service, small commerce, free logistic, construction, handicraft production and seasonal work. Almost of these workers have no or maintain labor contract, unstable income, risky occupational health and safety. Especially, they are not formal, many of them have not access to full social security policy such as social and unemployment insurance.

In 2025, Enterprises faced with fluctuation, especially exit labor market which affected informal workers’ life. When enterprises narrowed production or dissolved, many workers work as freelancer.

Because they did not pay unemployment insurance premium, these workers have almost no benefit and  their income is unstable, suffer from poverty and vulnerability with economic - social risk.

Therefore, finalizing benefit on ensuring social security to cover informal workers is important now. Building and deploying suitable solutions contribute to help these  workers gradually to access full benefit and contribute sustainable and stable development goal in the long period.

Social Insurance, Health Insurance - Social Security fulcrum for informal workers

High employment rate sustainability, Vietnam labor market requires improving quality and sustainable employment,  ensuring social security to workers. Informal workers who help labor market flexibly adapt need strengthening suitable protection. So gradually expanding coverage, enhancing social security are essential solutions to encourage informal workers to actively participate,  attach to formal sector and contribute to improving labor market’s quality and sustainability

VSS has deployed sollutions on flexibly expanding SI and HI coverage that is suitable with informal worker’s income and employment. Voluntary SI continues being finalized  with  practical innovation that facilitate participant. Under the policy, participants select income based SI  suitable with their income; diverse contribution method (month, quarter, 6 months or 1 year).  Also, the State supports partial premium to several target participant groups that helps ease  worker’s financial burden.

Beside, voluntary social insurance and household health insurance are affirmed as main pillar to information worker.Medical examination and treatment premium  is increasing, so HI participation helps worker reduce health fee, ensure healthcare right and limit relapse into poverty. In fact, many freelancers find HI as the first and most practical security.

 Notably, expanding social security not only finalizes policy but also is deployed under several synchronized solutions on organization implementation. Face to face propaganda and consultation are enhanced through organizations supporting participant enhancement, socio-political organizations, and local authorities. The “people-centered, grassroots-oriented” approach enables SI and HI policies to reach the right beneficiaries, meet actual needs, and gradually change informal workers’ perceptions of long-term social security.

Social Security Gap Is Gradually Shortened

Beside expanding SI and HI coverage, it is important to comprehensively deploy solutions to narrow the gap between informal and formal sector. Firstly, business environment is improved,  registration procedure is simplified, primary compliance cost, business individual is facilitated to change to formal operation. When formal sector is more favorable and attractive, worker has more participation motivation.

Besides, improving labor’s skill and  productivity are considered as basic and long-term solution. Informal workers mainly work for low added value and unstable income industry. Therefore, it is important to improve short-term vocational training, retraining under practical need from enterprises and economic structure transition, especially in major cities. When workers have better skills, they access to formal employment and social security policies.

VSS deployed several synchronized solutions to protect informal workers:  Providing policy advice to improve voluntary SI  and HI policies; accelerating administrative procedure reform; applying information technology and digital transformation in management and public service delivery; and strengthening coordination with ministries, industries, and local authorities in increasing  participation coverage. These solutions have been contributing to reducing compliance, saving time, facilitating for worker to access, participate and gradually strong attaches with social security.    

Narrowing informal worker’s social security gap  is not only VSS’ duty but also  responsibility of political system, all levels of  government, enterprises and society. When social security net is inclusively, flexibly, effectively  broadened, informal workers will be better protected from risks;  solid foundation for Vietnam’s labor market to develop in the modern, sustainable way and  harmonizing between economic growth and Social Progress and Equality - towards “No one left behind”./.