The Customer Services Centre consults residents and workers on issues related to social insurance, health insurance and unemployment insurance.

Reviewing and cutting administrative procedures

According to Director General of the Viet Nam Social Security (VSS) Nguyen Thi Minh, who is also Deputy Minister of Labour, Invalids and Social Affairs, the social insurance sector has carried out various drastic measures in administrative reform. The simplification of administrative procedures is an integral part of its work and aims to link social insurance agencies and the grassroots and business community.

The time needed for enterprises to follow the administrative process of health and social insurance as well as enjoy their benefits was shortened by cutting procedures. The outcome was in line with the requirements of the Government’s Resolution 19/NQ-CP on key tasks and solutions to improve the national business climate and competitiveness.   

Striving to have all companies using electronic transactions

Vice Minister Nguyen Thi Minh said efforts made by the social insurance sector have earned praise from the Government, people and international friends, but the VSS has not yet been satisfied with the results it has achieved in administrative reform.

To further reduce time and costs for organisations and individuals when undertaking social insurance, health insurance and unemployment insurance procedures, the VSS aims to boost IT application, particularly the launch of e-transactions in the fields of social and health insurance. The social insurance sector will continue to review and reduce administrative procedures and propose the Government and ministries amend and supplement legal documents in order to shorten the duration of administrative procedures for social insurance, health insurance and unemployment insurance.  

Specifically, VSS is striving to have all employers perform social insurance, health insurance and unemployment insurance-related procedures through e-transactions. Inspections will be intensified at provincial and municipal social insurance agencies to raise the performance of staff members in receiving dossiers and handling administrative procedures, thus creating favourable conditions for individuals and organisations to do transactions.

80 billion VND was deducted from the social insurance fund to adjust retirement pensions for female employees

From January 1, 2018, the adjustment of the formula calculating retirement pensions in the 2014 Law on Social Insurance resulted in female labourers retiring in 2018 receiving lower pensions than those with the same social insurance payment duration who retired in 2017 (from 1-10 percent).

According to statistics of the VSS, with the use of the formula mentioned in the 2014 Law on Social Insurance, female workers retiring during the years from 2018 to 2021 would be at a disadvantage in terms of retirement pensions compared to men. The number of affected women is predicted to be 20,500 in 2018, 22,000 in 2019, 23,500 in 2020 and 25,100 in 2021.

Therefore, the Government acknowledges the need to address the abovementioned shortcoming and minimise the impact on female employees who start receiving retirement pensions from January 1, 2018 to December 31, 2021.

The Government put forward a measure to compensate those affected by this policy by providing them with an amount equivalent to the disproportion of 10 percent caused by the application of the formula mentioned in the 2014 Law on Social Insurance.

Specifically, women who start receiving retirement pensions in 2018 will be provided with 8 percent of their pensions in compensation, 6 percent for those retiring in 2019, 4 percent for those retiring in 2020 and 2 percent for those retiring in 2021.

International Cooperation Department