The roadmap for applying new social insurance may be extended.

According to Deputy Minister Pham Minh Huan, if businesses propose difficulties in paying social insurance, the roadmap can be extended a bit more because businesses are under pressure to meet regulations on minimum wages.

On the sidelines of the conference on labor, meritorious people and society held today in Hanoi, Deputy Minister of Labor, War Invalids and Social Affairs Pham Minh Huan said that the new social insurance law, which will be applied from January 1, 2016, is a challenge for businesses.

Require businesses to increase salaries, not cut allowances

Mr. Huan informed that the Ministry is focusing on completing policies and guiding documents on regional minimum wage payment, thereby regulating social insurance and health insurance contributions.

“On December 24, the Ministry issued an official dispatch to continue reminding businesses to develop plans to adjust the minimum wage in accordance with regulations. And during implementation, businesses must try not to cut employee allowances to transfer to the new minimum wage. Localities must soon receive the payroll system of registered businesses as a basis for paying insurance premiums,” said the Deputy Minister.

However, if on January 1, 2016, when the legal documents are not yet issued in a synchronized manner, the issue of insurance payment on what basis may be in the direction of temporary collection according to the current regulations, then soon complete the legal documents on social insurance payment regulations. That is, until January 1, 2016, everything must still proceed as usual (applying social insurance calculation based on salary) if the legal documents are not issued in time.

Ms. Tran Thi Thuy Nga, Director of the Social Insurance Department (Ministry of Labor, Invalids and Social Affairs) said that the agency has collected opinions and is waiting for issuance. However, it is likely that it will not be able to issue before January 1, 2016 when the law takes effect.

From January 1, 2016 to the end of 2017, social insurance contributions will be based on the salary and allowances stated in the contract, not simply the basic salary as before. Illustrative photo.

"Currently, there are circulars guiding how to pay social insurance, we have posted them all on the Internet. The problem is whether people read them or not? Second, there is a relationship between salary and insurance, now in salary we have signed Circular 47 to fix the problems that businesses complain about, how to make it easier for businesses to implement", Deputy Minister Huan emphasized.

First of all, according to Mr. Huan, social insurance contributions must be based on rank and position according to the enterprise's salary system. In addition, allowances reflecting working conditions, professional qualifications, and attractive factors must be agreed upon by both parties to agree that social insurance must be paid.

However, there is still another allowance that the company is currently separating, which is the allowance for evaluating work results during the working process. This is not considered at the moment because it is unstable.

May extend route after 1/1/2016

According to the Deputy Minister, the compulsory payment of social insurance aims to increase the social insurance contribution rate of employees so that when they retire, they will have higher benefits. However, this will increase the costs of enterprises.

“In case many businesses propose difficulties, the roadmap can be extended a little more. Because every year, they have to increase the minimum wage,” the Deputy Minister added.

Previously, the VCCI representative also proposed to extend the implementation roadmap of the salary level as the basis for paying social insurance for employees. According to this unit, the social insurance payment roadmap for enterprises should be extended in the direction of maintaining the social insurance payment level according to the old regulations.

According to the provisions of the 2014 amended Law on Social Insurance, the social insurance (SI) contribution rate will change from the beginning of next year. Specifically, from January 1, 2016 to the end of 2017, social insurance contributions will be based on the salary and allowances stated in the contract. From 2018, employees will pay insurance based on the salary, allowances and many other additional amounts stated in the labor contract.

Thus, employees will pay 8% and businesses will pay 18%, accounting for 26% of monthly salary.

Explaining more clearly about the new Social Insurance Law, Ms. Tran Thi Thuy Nga said that all amounts used to calculate Social Insurance contributions have been predetermined and do not fluctuate too much each month.

According to her, this reduces difficulties for businesses, employees and insurance agencies in organizing the collection, payment and management of social insurance. The amounts that are not added to the salary to calculate social insurance include bonuses, meal allowances between shifts, travel allowances, telephone, housing, childcare allowances, etc.

Specifically, the salary allowances used to calculate the new social insurance contributions are the salary allowances agreed upon by both parties and recorded in the contract. For example, salary allowances to compensate for factors such as working conditions, complexity of work, living conditions; and the level of labor attraction that the agreed salary in the labor contract has not been taken into account or not fully taken into account.

According to Ms. Nguyen Thi Lan Huong, Director of the Institute of Labor Science and Social Affairs (Ministry of Labor, Invalids and Social Affairs), if the new regulations on wages and social insurance in 2016 are well applied, the group of low-income workers will improve. The group of high-income workers will probably not improve much.

Entering 2016, the Social Insurance Law began to be implemented, including adjustments to social insurance contributions, and the rate of social insurance contributions increased. Thus, the burden and cost of labor use for enterprises will certainly increase.

If you want to solve the problem of ensuring wages for employees while ensuring that labor costs increase, the best way for businesses, according to Ms. Huong, is to ensure good human resources and good treatment for employees. Through that, labor productivity will increase, ensuring compensation for increased labor costs as well as increasing wages for employees.

Vietnamese people pay insurance like saving money in piggy banks

Deputy Prime Minister Vu Duc Dam said that in most countries around the world, a social security network is vital. But Vietnam only looks at the percentage of people participating in social insurance.

According to Mr. Dam, in the recent report of the Ministry, he did not see any long-term system that could be sustainable if the insurance system was not stable. Because of the Vietnamese tradition, paying insurance is only for saving, saving like putting money in a piggy bank. The majority use social insurance to prevent illness.

“This is also a social psychological issue that we need to address. Accordingly, the Ministry needs to promote and mobilize, combining policies that promote people's response and voluntary awareness of social insurance contributions,” the Deputy Prime Minister emphasized.

According to Zing.vn