Step by step perfecting the policy

Social insurance policies for employees and managers at cooperatives have been implemented since 2003. Specifically, Decree No. 01/2003/ND-CP dated January 9, 2003 amending and supplementing a number of Article of the Charter of Social Insurance promulgated together with Decree No. 12/CP dated January 26, 1995 of the Government stipulates that additional groups of subjects participating in compulsory social insurance are: employees and cooperative members who work and receive wages under labor contracts for full 3 months or more in cooperatives established and operating under the Law on Cooperatives.

Since 2016 until now, according to the provisions of the Law on Social Insurance 2014, the subjects participating in social insurance have been employees and managers in the cooperative in a more comprehensive way.

Accordingly, amendments have been made to regulations on subjects participating in compulsory social insurance for managers and executives of cooperatives with salaries. From January 1, 2018 onwards, expansion has been made on subjects participating in compulsory social insurance for employees working under labor contracts with a term of 1 month or more in cooperatives.

In addition, the Law on Social Insurance also stipulates a policy to support contributions to voluntary social insurance participants, in which cooperative members and employees who are not subject to participation in compulsory social insurance are subject to voluntary social insurance and enjoy this support policy.

Illustrative image (Source: Internet)

According to the Ministry of Labor, War Invalids and Social Affairs, in the recent period, social insurance policies for people working in cooperatives have been promulgated in a timely manner, in line with the development process of the cooperative economy and conditions and needs of employees, contributing to expanding social insurance coverage, protecting employees and their relatives from risks in the production process, and creating conditions for people working in cooperatives to have a pension when they reach the end of their working age.

With the synchronous implementation of many solutions for new establishment, restructuring of existing cooperatives, and organization of production according to a new model of cooperatives, etc., they have contributed to improving the efficiency of production and business of the cooperatives, raising incomes for employees, creating more favorable conditions for the implementation of social insurance policies for employees working in cooperatives.

According to statistics of the Ministry of Labor, War Invalids and Social Affairs, statistics by the end of 2020, there were 7,415 cooperative units and 41,560 people of cooperatives participating in compulsory social insurance.

Illustrative image (Source: Internet)

A great room for growth

According to the data of the Vietnam Cooperative Alliance, as of December 31, 2021, the whole country had 27,342 cooperatives, an increase of 16,420 units (2.5 times higher) compared to 2001; attracting nearly 6 million members and creating jobs for nearly 1 million employees.

However, the number of cooperatives participating in compulsory social insurance is 7,451 units, accounting for 28.61% of the number of cooperatives, the number of compulsory social insurance participants of the cooperatives is 41,560, actually accounting for less than 2% of the number of regular employees in cooperatives.

According to statistics of Vietnam Social Security (VSS), the number of compulsory social insurance participants in cooperatives also tends to be unstable, with increases and decreases year by year. Meanwhile, the number of cooperatives participating in compulsory social insurance contributions for employees and cooperative members in cooperatives tends to increase year by year. This means that the average number of people participating in compulsory social insurance per unit of cooperative is on a decreasing trend.

Under the influence of the Covid-19 pandemic, the number of units, employees and managers in cooperatives is on a downward trend. As of October 2021, the number of social insurance participants under cooperatives is 37,646 (down 9.4% compared to the end of 2020), the number of cooperatives participating in social insurance is 5,688 units (down 23.66% compared to the end of 2020).

Regarding the salary as the basis for payment of compulsory social insurance of people in cooperatives, it is basically equivalent to the average income of employees in cooperatives (4.3 million VND/month). However, the average salary level as the basis for paying compulsory social insurance contributions of cooperatives is lower than the average salary level as the basis for paying social insurance contributions of employees in general. The increase in salary used as the basis for payment of compulsory social insurance of cooperatives is basically lower than the average increase in the general salary used as the basis for payment of social insurance contributions (except in 2018).

Although in the 2016-2020 period, the State has issued and revised many social insurance policies to expand the subjects participating in social insurance in cooperatives, the number of people in the cooperative sector participating in social insurance is modest compared to the number of members and regular employees at these units.

Illustrative image (Source: Internet)

To overcome the above limitations, in addition to strengthening the work of information, propaganda and dissemination of the provisions of the law on social insurance with cooperatives, employees and members of cooperatives, the Ministry of Labor, War Invalids and Social Affairs also proposed to continue to review and perfect the legal system of social insurance in accordance with the target group in these units.

Accordingly, it is necessary to review and research to expand the subjects participating in compulsory social insurance for managers and executives of cooperatives without salary when amending the Law on Social Insurance in the spirit of Resolution No. 28-NQ/TW dated 23 May 2018 of the 12th Central Executive Committee on reforming social insurance policies; research and adjust appropriate policies, increase attractiveness to attract the participation of workers in the cooperative sector, associated with the characteristics of this area: informal jobs and unstable incomes.

In addition, it is also necessary to synchronously implement numerous innovative solutions to develop the collective economy and cooperatives, contributing to improving the production and business efficiency of cooperatives, stabilizing jobs, and raising incomes for employees, creating more favorable conditions for the implementation of social insurance policies for employees working in cooperatives./.