Forming steady foundations

Under Resolution No.28, those subjected to compulsory social insurance will be expanded to owners of household businesses, non salary managers of businesses and cooperatives without salary, and labourers working under flexible contracts.

This is a great challenge on the way towards the target of social insurance for every worker.

This group does not belong to the official economic sector, making it difficult for management work, said Minh, stressing the need for closer links and connectivity among relevant agencies to encourage engagement amongst the public.

Labourers in non-official sectors are a disadvantaged, vulnerable group due to their unstable employment and low income. They usually work for long durations without labour contracts or simply with oral contracts, which leads to difficulties in joining social insurance.

In recent years, the Government has implemented many solutions to promote the officialisation of the economy and remove obstacles and difficulties for household businesses to become companies, while also encouraging innovative startups and expanding coverage of social insurance. As a result, the ratio of non-official labourers in Vietnam has reduced to some extent, however the figure still remains high with over 18 million people, or 57 percent of the workforce.

According to Minh, during the implementation of Resolution No.28, relevant policies will be gradually completed. As the income of labourers in the non-official sector is unstable, suitable policies will be designed for them to pay insurance in a suitable manner.

“We will provide advice on completing policies to create a firm foundation,” said the VSS leader. She held that in order to develop a wide base in the initial period, labourers can pay a smaller amount and enjoy support from the State. Minh said that with more flexible policies, better communications, and the involvement of the whole political system, it is possible to reach all targets stated in the resolution.

Adjusting support level for voluntary participation in social insurance

With an aim to expand coverage, experts suggested that along with “researching and designing short-term and flexible voluntary social insurance packages to give labourers more choices in participation and benefits from social insurance,” it is necessary to adjust the State’s support level.

Under Decree No.134/2015/ND-CP dated December 29, 2015 providing detailed stipulations of a number of articles of the Social Insurance Law, voluntary social insurance participants will enjoy assistance from the State at a certain percentage of their monthly premiums in line with the poverty line for households in rural areas. Those in the poverty brackets will receive assistance of 30 percent of premiums, 25 percent for those in the near-poverty group and 10 percent for the remainder.

Bui Sy Loi, Vice Chairman of the National Assembly Committee for Social Affairs, said that although they are supported by the State, households living under and close to the poverty line can hardly afford social insurance premiums. Therefore, it is necessary to give them greater assistance to encourage their engagement.

“We have to research, survey, and calculate the payment capacities of the people,” said Loi, who proposed that the State should support people reaching working age to join social insurance, using funding from welfare sources, in the same way as payment from companies for their contracted workers (14 percent of premiums), so that all can enjoy pensions.

A representative from the Ministry of Labour, Invalids, and Social Affairs said that there will be specific assessments on the results of the implementation of support policies, which will serve as a foundation for the research and recommendations on measures to complete relevant policies, while considering the possibility of increasing support to those who join voluntary social insurance./.