Amend the law to reduce one-time social insurance withdrawals
In order to reduce the number of people withdrawing one-time social insurance, the competent authority proposes to amend regulations in the direction of reducing the number of years of paying social insurance contributions to receive pensions, supplementing child support benefits, and adding policies to support businesses (enterprises). ) maintaining jobs with middle-aged workers.
People who withdraw one-time social insurance are mostly under 30 years old
Ms. Dinh Thi Thu Hien, Deputy Director of Policy Implementation – Vietnam Social Insurance, said that according to statistics, in the first quarter of 2022, there were over 208,000 people withdrawing social insurance once in the whole country, up 1% over the same period last year. It is estimated that in the first 4 months of 2022, the whole country has over 302,000 people withdrawing social insurance once, down 3% compared to 4 months of the previous year. Particularly in April 2022, the whole country has over 93,000 people withdrawing social insurance once, down 10% compared to April 2021.
Analyzing the cause of the decrease in the number of employees receiving one-time social insurance, Ms. Hien said that the epidemic situation is gradually being controlled. The employment of employees who lost their jobs for less than 1 year has improved. Many employees who once faced difficulties now have income and have no intention of withdrawing one-time social insurance. According to Ms. Hien, up to 97% of people who choose to withdraw once are employees after 1 year of leaving without paying social insurance. This rate in women is over 55%, higher than that of men. “The age of workers withdrawing one-time social insurance is getting younger and younger, popular at under 40 years old, of which the majority are only 20-30 years old and most of them are in the non-state sector. Therefore, it is necessary to have policies to limit withdrawals. One-time social insurance, but must increase long-term benefits without having a great impact on the psychology of employees,” – Ms. Hien suggested.
According to Vietnam Social Security, in the period 2016-2021, there were more than 4.59 million people enjoying one-time social insurance, on average, one person withdraws every two social insurance members and the next year is always higher than the previous year. Comparing the benefits of people who withdraw and do not withdraw one-time social insurance, Ms. Hien said that employees who withdraw one-time social insurance will lose many benefits, when the entire period of previous participation in social insurance is not reserved; not enjoy sickness and retirement benefits; free medical examination and treatment by health insurance; benefits for relatives, such as death benefits and accompanying benefits.
Mr. Dao Viet Anh, Deputy General Director of Vietnam Social Security, said that many young people with financial difficulties think of withdrawing once and then joining again later. In fact, there are still a large number of employees who have withdrawn their social insurance once and wish to continue paying, but currently the social insurance policy does not stipulate this content.
Completing policies to support employees in difficulty
Recently, the Government Office has issued notice No. 28 about the conclusion of Deputy Prime Minister Vu Duc Dam at the meeting on the situation of solutions to overcome the labor shortage. Accordingly, Deputy Prime Minister Vu Duc Dam asked the Ministry of Labor, War Invalids and Social Affairs (LOL) to coordinate with Vietnam Social Security and relevant ministries, branches and agencies to study and perfect the policy. support employees in difficulty in the process of amending and supplementing the Law on Social Insurance to limit the one-time withdrawal of social insurance.
“During the process of amending and supplementing the Law on Social Insurance, the Ministry of Labour, Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Vietnam Social Security Administration and relevant ministries, branches and agencies in studying and perfecting policies to support employees in difficulty. ensure to limit the situation of employees withdrawing social insurance once for immediate benefits” – the notice stated.
Welfare experts say that the one-time withdrawal of social insurance is mainly among workers with low incomes and no savings, so when they lose their jobs, they face many economic difficulties. When faced with the choice of having to borrow to take care of life and receive a one-time social insurance, employees often choose the following option. Even if it is less than 1 year after leaving the job, employees also choose to mortgage their social insurance books to receive an amount equal to only 50%-60% of the amount they should have received, while the regulations on paying social insurance premiums are limited. It takes at least 20 years to receive a pension, making it difficult for many employees to achieve.
The increase in social insurance withdrawal rate puts great pressure on the state budget to take care of the welfare and pension system for the elderly without a pension, especially when Vietnam is facing an increasingly rapidly aging population. Previously, the Ministry of Labor, War Invalids and Social Affairs proposed to amend regulations in the direction of reducing the number of years of paying social insurance premiums to receive pension from 20 years to 15 years and towards 10 years; supplementing the child support regime; add policies to support businesses to maintain jobs for middle-aged workers.
In particular, this ministry also proposes to supplement the regulation that employees who have paid social insurance premiums for a period of time but are not eligible for pension if they do not receive one-time social insurance will be entitled to an earlier social pension with a high monthly allowance. more than the others.
Mr. Bui Sy Loi, former Deputy Chairman of the National Assembly’s Social Affairs Committee, said that the proposal to reduce the time for paying social insurance premiums was included in the draft amendments to the 2014 Law on Social Insurance in the spirit of Central Resolution 28 with The goal is for the elderly to still pay social insurance premiums. “The reduction of the payment period is a good condition for the elderly to still pay, even people over 50 can still pay social insurance to enjoy their pension,” Mr. Loi said.
Increase participation in compulsory social insurance
Recently, at an international consultation workshop on amendments and supplements to the Law on Social Insurance, organized by Vietnam Social Insurance in collaboration with the World Bank, Mr. Christophe Lemiere, Human Development Program Manager In Vietnam, the low participation rate in compulsory social insurance in Vietnam is attributed to the long minimum period of pension enjoyment (20 years). Vietnam is also the only country that allows employees to withdraw one-time social insurance contributions, thereby increasing pressure on the social security system, and at the same time the state must provide income support for a large number of elderly people who do not participate. into the social security system. In order for the social insurance policy to develop sustainably, the Government needs to increase the number of people participating in compulsory social insurance, limit the number of people who withdraw one-time social insurance, and support 30%-50% of the voluntary social insurance contributions for the poor. achieve the target of 60% of the workforce participating in social insurance by 2030,” emphasized Mr. Christophe Lemiere.
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