Attending the meeting were leaders of the National Assembly's Committee for Social Affairs, representatives of the Ministry of Labour, Invalids and Social Affairs, General Director of VSS Nguyen The Manh, representatives of the Social Security Administration of the Ministry of Defense, the Ministry of Finance and committee members.

Rapid growth of the number of participants of social insurance

Reporting at the meeting, Deputy Minister of Labour, Invalids and Social Affairs Nguyen Ba Hoan said that due to the impact of the COVID-19 epidemic, in 2020 the number of people participating in compulsory social insurance definitely witnessed a decrease compared to the previous year. But thanks to the Government's drastic direction and the synchronous participation of ministries, branches, Party committees and local authorities, the number of subjects participating in social and unemployment insurance continued to rise, especially, the figures for voluntary social insurance participants are 1.1 million people, accounting for more than 2% of the labor force in the age group - exceeding the target set in Resolution No. 28-NQ/TW.

Illustrative image (source: internet)

Specifically, as of December 31, 2020, the number of participants in compulsory social insurance was 15,033,644, accounting for 31.12%, a decrease of 170,392 compared to the same period in 2019. In which, workers in the business and administrative regions, the Party, the Union, and the Armed Forces were 3,610,432 people, down 2.25% compared to 2019, accounting for 24.02% of the participants. Labor participation in the SOE sector is 918,449 people, down 4.63% compared to 2019, accounting for 6.11% of the participants. Labor participation in the FDI sector is 4,655,586 people, down 0.95% compared to 2019, accounting for 30.97% of the participants. Labor participation in the state-owned enterprise sector was 5,287,046 people, an increase of 1.05% compared to 2019, accounting for 35.17% of the participants.

Along with that, Hoan also said that the number of units participating in compulsory social insurance in 2020 still saw an increase compared to 2019. The number of units increased mainly in state-owned enterprises, small and micro enterprises. Therefore, although the number of participating units increased compared to 2019, the number of participants in compulsory social insurance decreased compared to 2019. “In 2020, there are 554,018 units participating in compulsory social insurance, an increase of 4.2 % over the same period in 2019. In which, while the number of units in regions all decreased compared to the previous year, the number of participating units in the state-owned enterprise sector was 375,972 units, an increase of 7.29% compared to 2019, accounting for 67.85% of the participating units" - Hoan affirmed.

According to Resolution No. 28-NQ/TW, by 2021, 35% of the workforce of the age group participating in social insurance should strive to achieve this goal, right from the beginning of 2020 in Resolution No. 01/NQ-CP dated January 1, 2020 of the Government on the main tasks and solutions to implement the socio-economic development plan and the state budget estimate in 2020, the target of developing social insurance participants is the ratio of workers in the age group participating in social insurance to reach 33.5%. By the end of December 31, 2020, the total number of social insurance participants was 16,161,789, achieving the set target of 2020, equaling 95.71% of the target of 2021.

Strengthening inspection and collection of outstanding debts

The Government's report also shows that as of December 31, 2020, the total amount of late payment of compulsory social insurance is VND 11,666 billion, an increase of VND 1,566 billion compared to 2019, equivalent to an increase of 15.5% compared to 2019, accounting for 4.2% of receivables (interest debt 3,017 billion dong). In which, late payment of business and administrative regions was 245 billion VND, accounting for 2.83% of the total amount of late payment. In the SOE sector, the amount of late payment is VND 1,161 billion, an increase of 50.22% compared to 2019, accounting for 13.43% of the total amount. In the FDI sector, the amount of late payment is VND 868 billion, an increase of 1.47% compared to 2019, accounting for 10.04% of the total amount. The amount is VND 6,146 billion for state-owned enterprises, up 14.69% compared to 2019, accounting for 71.06% of the total amount of late payment. Thus, in 2020, the situation of late payment of social insurance contributions still saw a rise. “However, 2020 recorded a rapid increase in late payment of social insurance contributions in the SOE sector with an increase of over 50% compared to 2019. Analysis by time of late payment shows that the amount concentrated in the group of 1 month to less than 6 months late with the proportion of 18.81%; and the group of 3 years late or more with the proportion of 34.4% and late payment interest with the proportion of 25.86%. In the group of 3 years late or more, it was mainly late payment from 4 years, 5 years or more with the proportion of 92.12%." - Hoan said.

Illustrative image (source: internet)

In 2020, the whole country conducted 8,6195 inspections on social insurance. In which, there were 2,903 inspections at 4,448 labor use units; 4,568 inspections at 6,051 units; 1,148 inter-sectoral inspections at 1,367 units. Through the inspection, 11,185 employees were proposed to but have not yet participated or have not fully paid with the arrears amount of VND 80 billion; 24,086 employees pay less than the prescribed amount with arrears of 68 billion dong; the amount of money that the employers' units were inspected for their debts before the Decision was issued was 1,971 billion VND and the paid units were 1,443 billion VND. Especially, the ratio of late payment of social and unemployment insurance premiums to the receivables tended to be lower in the period 2016-2019.

Giving comments at the meeting, Nguyen Hoang Mai - Vice Chairman of the National Assembly's Committee for Social Affairs said that in 2020, the amount of compulsory social insurance debt is 11,660 billion VND, an increase compared to 2019 and the amount of debt with interest is up to 3,017 billion, which is alarming. Therefore, there will be many types of debt in this total social insurance debt, so the Government needs to classify them, whether which one is due to deliberate delaying, which one is due to the impact of the COVID-19 epidemic (before and after), debt of bankrupt and dissolved enterprises, etc. to have suitable solutions.

“The report of the VSS showed that the amount of debt increased but could not be criminally handled as the collection of records faced many difficulties; some investigating agencies asked the social insurance agency to provide documents that are beyond their control. Then why would the investigation agency require the social insurance agency to provide them while the investigation agency require relevant agencies to do that?” - Mai assessed.

Speaking at the meeting, General Director of VSS Nguyen The Manh has received the opinions of the delegates and will send a report to provide more information. Regarding issues related to mechanisms and policies, VSS and the Ministry of Labour, Invalids and Social Affairs will coordinate to implement and assess the impact of the Law on Social Insurance as well as obstacles to soon complete the legal regulations.

According to Manh, although 2020 was a year of natural disasters, the VSS has coordinated with branches, local government committees, from provinces to villages to perform tasks and Resolutions on expanding voluntary social insurance coverage. It is thanks to the close involvement of agencies that the number of participants in voluntary social insurance has doubled in 2019. Along with that, the collection of social insurance has reached and exceeded the Government estimate, and made a rise compared to the same period in 2019. By June 30, 2021, social insurance revenues also increased compared to the same period in 2020.

“In such conditions of natural disasters and epidemics, the increase in revenue is thanks to the drastic efforts of the social insurance agency in the collection of social insurance debts; strengthening inspection and supervision since the debt has not yet arisen; Social insurance officials at all levels have actively urged debt recovery at arising units. In particular, thanks to the application of IT, especially since the implementation of VssID, the employees could self-monitor the payment process of employers, and they were able to discover that the unit owes social insurance and has recovered billions of dongs supervised by employees; they along with social insurance agencies collected social insurance debts (several billion dong in each unit). On the other hand, the debt in 2020 is more than 11,000 billion dong, although the absolute number only increased slightly compared to 2019, the relative amount decreased. In such conditions, we analyze debt age from less than 1 month; from 1 month to 5 years and over 5 years - this is a bright spot in debt recovery. From the debt classification, we analyze the debt objects. Of that debt, over 1,200 billion are debts of enterprises that have gone bankrupt or dissolved and as well do not have a business address. To strongly apply IT to develop criteria for debt to give warnings, analyze and urge recommendations, and still ensure compliance with the Prime Minister's Directive." - Manh affirmed.

Completing policies to ensure employees' interests

According to the report of VSS, there are about 163,000 units and enterprises that have not participated in social and health insurance; 241,000 units and enterprises have not yet fully provide participation in social and health insurance for their employees and those are mainly concentrated in small and micro state-owned enterprises with the number of employees and individuals whose income needs to be reviewed, of about over 3 million people (tax authorities reported about 18 million employees and individuals have taxable income, but the social insurance agency is managing the collection of compulsory social insurance and health insurance for over 15 million people). The social insurance agency is continuing to coordinate with relevant units to investigate and review to determine the number of enterprises and employees eligible to participate in compulsory social insurance among 163,000 income-paying organizations and individuals and 3 million individuals with income mentioned above. It is estimated that about 500,000 or 800,000 employees are required to but have not yet participated in compulsory social insurance.

Therefore, in order to ensure employees' interests, the VSS has directed local social security agencies to closely coordinate with functional agencies and units to determine the number of employees eligible to participate in compulsory social insurance and unemployment insurance to urge and request units and enterprises to register participation for employees. At the same time, to connect information and data with relevant ministries and branches to manage operating and newly established units and enterprises; employees are working and are eligible to participate in compulsory social insurance; to carry out specialized inspection of payment of social insurance premiums, in which focusing on inspecting units and enterprises that are deliberately evading payment and paying social insurance premiums; not yet fully participate for the number of employees who are required to participate in compulsory social insurance and unemployment insurance. At the same time, the People's Committees of the provinces have directed the local authorities to implement solutions to manage the number of operating businesses, the number of employees working and the number of employees participating in the compulsory social insurance. To synchronously implement solutions to increase compliance in participating in compulsory social insurance; and require enterprises to fully participate in compulsory social insurance for their employees.

Commenting on this issue, Mrs. Nguyen Thi Nhu Y (Dong Nai Province) said that, in addition to the reasons stated in the Government Report, the failure to comply with the law on social insurance in some units is due to the coordination between enforcement agencies being unclear. Along with that, the sanctions for administrative violations are still low, lacking deterrence, and the maximum level of sanctioning for violations on social insurance payment is 75 million VND, so many businesses are willing to accept fines to appropriate.

“The sanctions on crimes in the field of social insurance are still qualitative, leading to different interpretations. Therefore, in fact, the social insurance agency and trade union transferred many dossiers to the investigating agency, but it has not prosecuted any cases according to Article 216 of the Penal Code. Therefore, it is necessary to amend and supplement regulations on representation in the proceedings as soon as possible, creating a basis for the superior trade union to represent workers to sue the unit for arrears of social insurance." - Y suggested.

Regarding the issue of amending regulations, Hoan said that currently, the Ministry of Labour, Invalids and Social Affairs is in the process of receiving and explaining the appraisal opinions of the Ministry of Justice to complete the project dossier. The amended Law on Social Insurance, expected to be submitted to the Government in the fourth quarter of 2021 for submission to the National Assembly for inclusion in the Law and Ordinance Development Program in 2023. The comments will be absorbed and studied on for completion.