The number of voluntary social insurance participants exceeds target

Presenting a report on the implementation of social insurance policies and the use and management of the Social Insurance Fund in 2020, Head of the NA Committee on Social Affairs Nguyen Thuy Anh said the Government, Ministry of Labour, Invalids and Social Affairs and other relevant ministries and agencies have actively amended and issued legal documents to meet management tasks, create more favourable conditions for those eligible to benefit from social insurance and unemployment insurance policies and support employers and employees, particularly those affected by the COVID-19 pandemic.

Despite the pandemic, the mobilisation of social insurance participants in 2020 reached 95.71 per cent of the target set by the Resolution No 28-NQ/TW on social insurance policy reform.

The mobilisation of voluntary social insurance participants in 2020 reached 2.31 per cent of the workforce, exceeding the set target of 1 per cent for 2021 and equivalent to the target set for 2025.

“Basically, the policy to support the payment for voluntary social insurance has created conditions for poor and near-poor households and others to participate in the social insurance system, contributing to maintaining and expanding social insurance coverage and ensuring social security for people. In 2020, a total of 1,128,145 people were assisted with a total amount of around VND137.6 billion, a year-on-year increase of 35 per cent in comparison with 2019,” Anh said.

The total number of social insurance participants in 2020 reached 16,161,789 people, up 2.5 per cent in comparison with 2019.

Agreeing with the report, Head of the National Assembly Standing Committee’s Board for Deputy Affairs Nguyen Thi Thanh said 2020 witnessed many difficulties, particularly the impacts of the COVID-19 pandemic but the Government and authorised agencies made great efforts and achieved encouraging results in expanding the coverage of social insurance and unemployment insurance. However, in order to fulfill the target set by Resolution 28, it was essential to design the social security package flexibly and diversified in developing social insurance and to design social insurance payment packages in line with different groups of participants.

The Government should continue studying social security policies to have resources and create multi-level social insurance system; and review to adjust related policies to increase support for social insurance participants, particularly poor and near-poor households to help them join the social insurance system with the aim of ensuring long-term social security, she said.

Addressing the session, NA Chairman Vuong Dinh Hue said it was the huge responsibility of the Government and relevant sectors in managing the Social Insurance Fund.

He praised relevant ministries and agencies for achievements gained in developing voluntary social insurance. However, he said, it was necessary to soon amend the Law on Social Insurance towards encouraging employees to join the social insurance system.

Increasing effectiveness of inspection in outstanding debt collection

In 2020, Viet Nam Social Security strived to recover late payment in the group of 5 years late or more worth VND2,190 billion, down 1.19 per cent in comparison with 2019. As of December 31, 2020, the total amount of late payment of compulsory social insurance is VND11,666 billion, an increase of VND1,566 billion compared to 2019, accounting for 4.2 per cent of receivables (interest debt was VND3,017 billion, accounting for 26 per cent of the total amount).

Meanwhile, the amount of late payment and debt payment is forecast to keep increasing in 2021 and the following years due to the COVID-19 pandemic. Among which, attention should be paid to the group of 3 years late or more because this group makes up a big proportion in the total amount of debts, accounting for nearly 60 per cent.

“To help remove difficulties caused by the pandemic for employers and employees, the Government and ministries, agencies and sectors have issued many support measures. Social insurance agencies have temporarily suspended payments into the retirement and death gratuity funds of social insurance for units and businesses which face difficulties due to COVID-19,” Anh said.

The report also shows that amid the COVID-19 pandemic, the Ministry of Labour, Invalids and Social Affairs and the social security sector have actively reduced inspection and examination activities.

In 2020, the whole country conducted 8,619 inspections on social insurance (down 54 per cent in comparison with 2019). Through the inspections, 11,185 employees were proposed to but have not yet participated or have not fully paid, with the arrears amount of VND80 billion; 24,086 employees who paid less than the prescribed amount with arrears of VND68 billion; the amount of debts that the employers were inspected before the Decision was issued was VND1,971 billion and they paid VND1,443 billion after inspection.

Especially, the rate of late payment for social and unemployment insurance premiums tended to reduce in the 2016-2019 period.

“Inspections have found many violations in the implementation of policies and regulations relating to social insurance and unemployment insurance but the Government report does not mention information relating to the implementation of inspection results,” Anh said.

Amending the Law on Social Insurance to address shortcomings

However, a number of policies and regulations have been issued but not yet implemented.  Particularly, the Government has not yet issued regulations on handling outstanding debts of social insurance, health insurance and unemployment insurance of businesses that already stopped operation or are going to be dissolved or go bankrupt or their owners fled in order to deal with social insurance and unemployment insurance policies for employees. 

Therefore, the Standing Committee on Social Affairs proposed ministries, agencies and localities to increase inspections and examinations on the implementation of social insurance policies and have measures to minimise violations; have comprehensive and resolute measures to develop social insurance participants, particularly workers in the non-official sector and voluntary social insurance participants; and enhance cooperation between ministries, agencies and localities to develop the Social Insurance Fund.

Closing the meeting, NA Vice Chairman Tran Thanh Man said the NA Standing Committee acknowledged the efforts of the Government, State management agencies and social insurance agencies in coordinating to implement social insurance policies, particularly efforts in developing social insurance participants and those eligible for social insurance policies amid the COVID-19 pandemic. However, shortcomings remained and needed solutions, he said.

The NA Standing Committee asked the Ministry of Labour, Invalids and Social Affairs and relevant ministries and agencies to promptly review and complete the report on the implementation of social insurance policies and regulations and the management and use of the Social Insurance Fund of 2020 to report to the NA at the second session scheduled for October, 2021.

The Committee pointed out the need to continue developing social insurance participants to fulfill the target set by the Resolution 28, particularly increasing the number of compulsory social insurance participants in the current context of the pandemic.

Regarding late payment for social insurance, it is necessary to review and find reasons behind the late payment to have measures to handle and protect the interests of employees; and inspection tasks should be renewed to not affect business and production activities of enterprises.

Social insurance premium collection and benefit and allowance payment must be done correctly ensure the right beneficiaries to prevent loss to the social insurance fund, NA Vice Chairman Man said./.