Millions of people will be without a pension.

Millions of workers will reach retirement age without pension income due to the lack of social insurance. This burden will fall on the State.

The workshop "Towards ensuring social security and implementing the Social Insurance Law" was organized this morning in Hanoi by the National Assembly's Committee on Social Affairs, the Ministry of Labour, Invalids and Social Affairs, the Vietnam General Confederation of Labour, and Vietnam Social Insurance (VSI).

Pham Do Nhat Tan, former Director of the Social Insurance Department of the Ministry of Labor, Invalids and Social Affairs, commented that the 2014 Social Insurance Law has fundamentally addressed the limitations and shortcomings of social insurance policies and regulations implemented in the past. However, he also pointed out some challenges in the implementation of the law.

Overview of the conference

According to him, both employees and employers have not been proactive and self-aware, leading to dishonesty in declarations, fraud regarding the number of participants in social insurance as stipulated by law, and incorrect or insufficient contributions.

The system of guiding documents for the implementation of the Social Insurance Law is limited to only a few assigned articles and clauses, while many other articles, if not clarified, will create difficulties in organizing and implementing the law.

Another shortcoming pointed out by Mr. Tan concerns the lack of transparency in providing information related to the management of beneficiaries, the settlement of entitlements for workers, and the simplification of procedures and paperwork... while the implementing apparatus still has many limitations and inadequacies in terms of staff capacity.

Nguyen Huu Doan, Chairman of the Hai Duong Provincial Business Association and Chairman of the Hai Duong Provincial Employers' Council, expressed his skepticism, wondering if the sustainable social security implemented in developed countries is due to their progressive, appropriate, and consistent laws, rather than the changeable, cumbersome, and complicated laws in Vietnam.

"From managers and employees to those participating in social insurance, people must feel secure knowing they will receive benefits. They should be confident that they won't have to worry about buying their own house or land if they fall on hard times," Mr. Doan said.

Meanwhile, Nguyen Thi Thuy, Head of the Culture and Social Affairs Committee of the Hanoi City People's Council, believes that the insurance industry must shift from an administrative mindset to a service-oriented one, "instead of sitting in air-conditioned offices waiting for people to come and pay their insurance premiums, it should go down to the people."

Proposal to include the crime of evading social insurance contributions in the Criminal Code.

According to the Chairwoman of the Committee on Social Affairs, Truong Thi Mai, as of December 31, 2014, the number of people participating in social insurance was 11,647,784, of which 11,451,530 participated in compulsory social insurance, 9,213,302 participated in unemployment insurance, and 196,254 participated in voluntary social insurance. The number of people participating in compulsory social insurance accounted for approximately over 70% of the total workforce eligible for compulsory social insurance.

Noticing the low rate of participation in social insurance – just over 20% of the total workforce – Ms. Mai stated that in the future, millions of workers will reach retirement age without pension income, and this burden will fall on the State.

Chairwoman of the Committee on Social Affairs, Truong Thi Mai. Photo: Minh Quang

"This time, in revising the policy, we continue to expand the scope, creating conditions for non-specialized officials to participate with the State providing 14% support. Secondly, we are expanding the scope of the informal sector through State support," Ms. Mai requested.

Deputy Director General of Vietnam Social Security, Do Van Sinh, proposed adding the crime of evading social insurance contributions and the crime of misappropriating social insurance funds from employees to the Criminal Code. This includes cases where social insurance contributions are deducted from employees' accounts but not submitted to the social insurance agency for a long period, even after administrative penalties have been imposed, but the violation continues.

Deputy Chairman of the Committee on Social Affairs Bui Sy Loi emphasized the need to strengthen information, communication, and mobilization efforts to encourage people, especially farmers, to participate in voluntary social insurance.

According to Vietnamnet