Higher Support Rate for Social Insurance Proposed to Engage More Voluntary Policyholders

9:15:07 AM | 1/9/2020

The Vietnam Social Security (VSS) recently sent Official Letter 2620/BHXH-BT on requests for higher rate of support for buyers of voluntary social insurance to the Ministry of Finance.

Previously, the Government Office issued Official Letter 2400/VPCP-KTTH dated March 27, 2020, on proposed solutions to expand coverage of social insurance for employees in official sectors in Vietnam, and sent the Official Document 2602/UBVDXH14 of the National Assembly's Committee on Social Affairs to the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Vietnam Social Security to study and settlement within their jurisdiction.

Particularly, policyholders of voluntary social insurance from poor households were counted at 2,930 in 2018, or 1.05% and from near-poor households at 4,390, accounting for 1.58% of voluntary social insurance policyholders. In 2019, over 6,500 poor people and 9,700 near-poor people held voluntary social insurance policies, accounting for 1.13% and 1.70% of total voluntary social insurance policyholders.

However, given the potential, the number of voluntary social insurance policyholders remains quite low, especially people from poor and near-poor households accounting for only less than 3% of total voluntary social insurance policyholders in the past two years.

To complete the target of voluntary social insurance development under Resolution 28-NQ/TW dated May 23, 2018 of the 12th Party Central Committee on social insurance policy reform (by 2021, about 35% of the people in the working age hold social insurance policies, with voluntary social insurance accounting for about 1%; the respective figures will be 45% and 2.5% in 2025 and 60% and 5% in 2030), to study continued working reforms, to coordinate with relevant ministries and agencies to propose amendments and supplements the law on voluntary social insurance to reduce conditions on the time duration of voluntary social insurance payment to enjoy pension benefits, and to supplement flexible short-term voluntary social insurance regimes, the Vietnam Social Security asked the Ministry of Finance to study and submit the proposed increase of government support for voluntary social insurance participants, especially from poor and near-poor households, to the Government to enable more people to afford voluntary social insurance and reduce the number of people unable to afford the premium payment. Specifically, the VSS proposed raising the support from 30% to 50% for poor households and from 25% to 30% for near-poor and from 10% to 20% for the rest.

Thus, in addition to efforts to implement consistent solutions on development of voluntary social insurance policyholders, the VSS continued to actively make proposals and recommendations for a better legal system for voluntary social insurance that will engage more people to take part in and firmly expand the coverage of social insurance to realize the goal of universal social insurance.

By Huong Thom, Vietnam Business Forum