Businesses are helpless against the wave of one-time social insurance withdrawals

From left to right: Mr. Ha Phuoc Thang - Deputy Head of the Ho Chi Minh City National Assembly Delegation, Ms. Tran Thi Dieu Thuy - President of the Ho Chi Minh City Labor Federation, Ms. Tran Kim Yen - President of the Ho Chi Minh City Vietnam Fatherland Front Committee - at the meeting with voters on the morning of May 11 - Photo: VU THUY

Mr. Tran Thanh Son - Chairman of the Trade Union of Song Ngoc Garment Company Limited - said so at the conference to contact voters to give opinions on amending the Law on Social Insurance and the Law on Trade Unions of the Ho Chi Minh City National Assembly Delegation on May 11.

Businesses all report that many workers quit their jobs to wait for their one-time social insurance payout, and can receive unemployment benefits while waiting for them. This is also the reason why businesses are short of workers, making it difficult to recruit workers to compensate or expand production.

It is not difficult to withdraw social insurance at once.

Mr. Kim Vinh Cuong - Vice President of the Labor Union of PouYuen Vietnam Co., Ltd., which has the largest number of employees in Ho Chi Minh City - said that many people are guessing about how the one-time withdrawal of social insurance will be approved and are quitting their jobs in advance to "run" the law.

"Many workers from other provinces come to Ho Chi Minh City to work, considering social insurance as an accumulation and savings. Many people have been working since they were 18 years old, if they wait until they are 60 - 62 years old to retire, it will be a long time and they cannot wait that long," said Mr. Cuong.

He pointed out that in reality, there are very few workers over 50 years old because at that age they are not healthy enough to continue working and have to quit their jobs to return to their hometowns or find other jobs.

The situation of quitting jobs to wait for a one-time social insurance payment is also happening at Lien A Mattress Company. Mr. Pham Quoc Tien - Chairman of the union - said that many people have worked for 10 - 15 years, even 20 years and want to quit their jobs to withdraw their social insurance payment at once.

"They want to withdraw all the previous contributions because if they return to work and start over, they will still have time to work for another 15-20 years to pay social insurance and receive pension," said Mr. Tien.

There must be a support policy when not allowing one-time withdrawal of social insurance.

Business representatives said they tried to persuade workers to stay and keep their social insurance contributions to receive their pensions, but were unable to do so.

Mr. Tran Van Trieu - Director of the Ho Chi Minh City Trade Union Legal Consulting Center - said that when passing the revised Law on Social Insurance at the upcoming National Assembly session, it is necessary to drastically regulate the one-time withdrawal of social insurance.

"You should not choose the option of withdrawing 50% of your social insurance contributions at once because it will not solve the problem of withdrawing social insurance at once.

"We should suffer the pain once, so that those who paid before this law takes effect in July 2025 can withdraw it once. Those who paid after that time will keep it for retirement, building sustainable social security," Mr. Trieu suggested.

In fact, according to legal propaganda sessions at businesses, many people, even though they are not in difficulty, still rush to withdraw social insurance at once.

However, there are also cases of real difficulty, requiring urgent financial support. Therefore, there needs to be a support policy for groups in real difficulty, such as preferential interest rate loans.

Mr. Tran Thanh Son - Chairman of the Trade Union of Song Ngoc Garment Company Limited - said that many long-time, skilled workers at the company want to quit their jobs to wait for a one-time social insurance payment - Photo: VU THUY

Agreeing, Mr. Tran Dung Ha - Deputy Director of Ho Chi Minh City Social Insurance - said that choosing a plan so that new participants from 2025 onwards do not withdraw social insurance at one time can operate well in practice, it is necessary to have a series of accompanying solutions to support workers in difficulty such as supporting workers to learn a trade, change jobs, provide loans, etc.

Many other opinions also proposed adjusting some provisions of the draft law to encourage workers to participate in social insurance.

Source: https://tuoitre.vn/doanh-nghiep-bo-tay-truoc-lan-song-rut-bao-hiem-xa-hoi-mot-lan-20240511123636162.htm