What do experts say about the proposal to let employees pay social insurance themselves?

This is the opinion of experts on the proposal of Ho Chi Minh City Social Insurance to let employees pay social insurance themselves based on their monthly salary as the basis for compulsory social insurance, instead of letting businesses pay as is currently the case.

Workers do procedures at the Social Insurance agency

Concerned about complicated collection work

Sharing with Thanh Nien on October 14, Mr. Pham Minh Huan, former Deputy Minister of Labor, Invalids and Social Affairs, said that this is a very noteworthy proposal and needs further study.

However, according to Mr. Huan, the current collection method is appropriate. According to regulations, employers and employees participate in compulsory social insurance. In addition to the 14% that businesses must pay for employees, businesses must deduct 8% of employees' monthly salary to contribute to the Social Insurance Fund.

Mr. Huan is concerned: "If now employees pay 8% themselves, it will be very complicated and difficult for the collection of social insurance. It is the responsibility of employees to pay social insurance, but will they pay on time or what if someone takes the money home and spends it all without paying social insurance?"

The proposal to allow workers to pay social insurance themselves was raised at a workshop to collect opinions from trade union officials on the draft law on social insurance (amended) organized by the Vietnam General Confederation of Labor (VGCL) in April.

Through the supervision of the Vietnam General Confederation of Labor on the implementation of social insurance policies and laws at the grassroots level, many union officials in localities reported that there were many cases where enterprises deducted social insurance from employees but then did not pay it to the social insurance. As a result, employees were not entitled to social insurance benefits.

Mr. Ninh Quang Duong, Head of the Policy and Law Department (Lao Cai Provincial Labor Federation), suggested: "Employees pay social insurance every month, but only when they quit or have their labor contracts terminated do they find out that the company has not paid the money to the social insurance agency. Instead of entrusting the social insurance payment to the company, should the employees pay their own social insurance to the social insurance agency to avoid the company being slow, slow, or evading social insurance payment?"

According to Mr. Le Dinh Quang, Deputy Head of the Legal Policy Department (Vietnam General Confederation of Labor), allowing employees to pay their own social insurance is not a new proposal, employees have been raising this issue for many years.

Mr. Le Dinh Quang shared: "The Vietnam General Confederation of Labor has consulted and proposed, but it is very difficult to design. Indeed, there is no solution yet, but these are legitimate requests from workers, we need to accept and take note to resolve them satisfactorily for workers."

"Good suggestion but the important thing is whether it can be done or not"

Supporting the proposal to let workers pay their own social insurance, Mr. Bui Sy Loi, former Vice Chairman of the National Assembly's Social Affairs Committee, expressed his opinion: "The proposal is very good, but the important thing is whether we can do it or not? Open an application on the phone for workers, on the day and month, workers pay. I have also given my opinion many times, but so far the Social Insurance agency has not been able to do it."

According to Mr. Loi, this is a good solution that can reform administrative procedures, bringing practical benefits to workers. However, this expert is also concerned about the capacity of the implementing agencies.

"We are living in the era of technology, industry 4.0, applying digital transformation, reforming administrative procedures is an issue that should be done and must be done soon. Employees who are paid their full salary will pay 8% themselves, the business will pay 14%. Businesses that do not pay must be responsible to the State and will be punished for violations, even more severely," Mr. Loi expressed his opinion.

Faced with concerns that workers will not pay money to the Social Insurance agency, Mr. Loi said that workers will know their rights, if they pay, they will enjoy them, if they do not pay, they will lose their rights.

Regarding this issue, Mr. Nguyen Duy Cuong, Deputy Director of the Social Insurance Department (Ministry of Labor, War Invalids and Social Affairs), said that the Ministry of Labor, War Invalids and Social Affairs had previously conducted research. With more than 16 million people participating in compulsory social insurance today, the Social Insurance agency only manages over 300,000 businesses.

Basically, most employers pay on time and in full, with only a few cases falling into situations that give management agencies a "headache". "If we stipulate that employees pay by themselves, the management agency will have to manage 16 million people paying social insurance every month, which may not be as effective as it is now. It is very difficult to collect each case of social insurance arrears," said Mr. Cuong.

Proposal to add sanctions to punish businesses that evade paying social insurance

To limit the situation of businesses delaying and evading social insurance payments, in the latest draft of the Social Insurance Law (amended) to be submitted to the National Assembly at the 6th session at the end of October, the Government proposes additional sanctions for acts of delaying and evading payment.

Specifically, the competent authority decides to stop using invoices for business owners who are late or avoid paying for 6 months or more, have been administratively sanctioned but still delay paying or do not pay enough money. For units that owe social insurance for 12 months or more, the legal representative or authorized person will be delayed from leaving the country.

Three acts of social insurance evasion include: employers have not submitted or submitted compulsory social insurance registration documents after the prescribed time; registered and paid lower than the salary used as the basis for compulsory payment; business owners have registered to pay social insurance for employees, have the capacity but do not pay.

In cases of force majeure such as natural disasters, epidemics, economic recessions... that affect businesses, the drafting committee proposes to temporarily suspend contributions to the Pension and Death Fund for 12 months and not have to pay interest when making additional payments.

The draft also adds a provision that gives the Social Insurance Agency the right to sue employers who are late or evade paying social insurance after administrative sanctions have been imposed but they still violate the law. In cases where there are signs of a crime of evading payment under the provisions of the Penal Code, the Social Insurance Agency will recommend prosecution.

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