Labourers should think twice about lump sum social insurance: experts
28/11/2018 08:44 AM
Experts have suggested labourers think twice before taking a lump sum social insurance payment, explaining social insurance has been seen as savings for labourers when they are old as it is contributed to by both labourers and employers. They gave the suggestions in the context of increasing registrations for lump sum social insurance payments, especially among above-35-year-old employees.
Le Dinh Quang, deputy head of the Labour Relations Department under the Vietnam General Confederation of Labour, confirms the increase in the number of above-35-year-old labourers receiving lump sum social insurance payments.
Le Dinh Quang, Deputy Head of the Labour Relations Department under the Vietnam General Confederation of Labour, confirmed the increase in the number of above-35-year-old labourers receiving lump sum social insurance payments at a conference on social and health insurance held by the Vietnam Social Security (VSS) in late August.
He pointed out that workers above 35 years old at garment-textile and footwear companies have voluntarily left work as their health no longer allowed them to work in the industry.
Besides, companies dismiss this group of employees to cut wage and social insurance costs, and encourage them to retire, he said.
In fact, most labourers have to select lump sum health insurance as they are unable to return to the labour market, Quang explained.
To control the situation, Quang suggested agencies and sectors intensify inspections of the implementation of laws on labour and social insurance, while stepping up communication work to raise labourers’ awareness of the benefits of the monthly retirement pension.
Besides, ministries and agencies should increase vocational training and pay attention to occupational shifting for this group of labourers to help them seek suitable jobs after being dismissed, he said.
Dao Viet Anh, VSS Deputy General Director, said there is no reason for young labourers to receive lump sum social insurance payments when they are still able to work to cover their daily expenditure.
Dao Viet Anh, VSS Deputy Director, said the increasing number of labourers receiving lump sum social insurance payments would greatly affect the guarantee of long-term social welfare for labourers beyond working age.
Given this, the 12th Party Central Committee’s Resolution No. 28-NQ/TW on social policy reform prescribes suitable regulations are needed to reduce lump sum insurance payments by increasing the benefits of regular social insurance contribution.
Bui Sy Loi, Vice Chairman of the National Assembly’s Committee for Social Affairs, said it is necessary to make labourers understand that they should continue to participate in social insurance to receive social welfare when they are old.
Speaking at a seminar themed “Social insurance policy reform towards universal social insurance” held by the Government’s Portal on August 3, Vice Chairman of the National Assembly’s Committee for Social Affairs Bui Sy Loi described social insurance as State-guaranteed savings of labourers.
Resolution No. 28-NQ/TW also prescribes the rise of benefits from regular social insurance contribution, he said.
The Law on Social Insurance Policy should be amended to ensure labourers contribute 8 percent of their salary and businesses contribute 14 percent to social insurance.
Therefore, labourers who want to get lump sum insurance payments are allowed to take back only the 8 percent they have contributed while the remainder will be added to the social insurance fund.
Loi said, in fact, many labourers who received the lump sum have registered to continue participating social insurance to get retirement allowances.
However, there are no regulations on this, he said, suggesting the case should be prescribed legally.
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