Provincial Farmers' Association organizes social criticism of the draft revised Law on Social Insurance

On March 19, the Provincial Farmers' Association organized social criticism on the draft Law on Social Insurance (amended).

The current Law on Social Insurance was passed by the 13th National Assembly at its 8th session on November 20, 2014. After nearly 7 years of implementation (since the Law took effect on January 1, 2016), the Law has actively contributed to ensuring the legitimate and legal rights of employees and employers through short-term and long-term social insurance regimes. However, with the emergence of many new situations, especially in recent years, many contents are no longer suitable. The National Assembly's decision to amend the Law is a practical and inevitable requirement.

At the conference, delegates agreed that the draft Law on Social Insurance (amended) had gone straight to the heart, addressing issues of particular concern to public opinion and workers, in order to contribute to fundamentally resolving difficulties and shortcomings; ensuring the harmony of interests between workers and employers.

Through studying the draft Law on Social Insurance (amended), delegates basically agreed with the Draft Law on Social Insurance (amended) on the entire format, layout, and content of 9 Chapters and 133 articles.

Provincial Farmers' Association organizes social criticism of the draft revised Law on Social Insurance — Delegates contribute opinions to the Draft Law on Social Insurance (amended).

In particular, some comments suggested that the provisions at Point b of Option 1 in Article 37 of the draft Law on the basis for compulsory social insurance and voluntary social insurance should be amended. It is proposed that the draft Law on Social Insurance (amended) should stipulate more specifically that "the salary used as the basis for social insurance payment for employees paying social insurance according to the salary regime decided by the employer. Accordingly, the salary used as the basis for social insurance payment is the monthly salary, including salary, salary allowances, and other supplements, paid regularly and stably in each salary payment period".

Some opinions suggested clarifying the items that are not used as a basis for social insurance contributions: Salary used as a basis for social insurance contributions does not include the following items: Bonuses according to the provisions of the Labor Code; overtime pay; in-kind compensation; support when a relative dies, a relative gets married, a birthday, or subsidies for employees in difficult circumstances due to work-related accidents or occupational diseases.

The reason is to comply with the orientation in Clause 8, Section III of Resolution No. 28-NQ/TW on reforming social insurance policies, according to which "Amending the regulations on the basis for social insurance contributions of the business sector to at least be equal to about 70% of the total salary and other incomes of the salary nature of employees to overcome the situation of evasion and underpayment of social insurance, affecting the ability to balance the Social Insurance Fund and especially affecting the rights of employees...

In addition, for provisions that stipulate cash subsidies, comments suggest that the amount should not be specified but calculated as a percentage of the social insurance contribution. Reason: The life of the law is at least 10-15 years or longer. Specifying a specific amount will soon become outdated and inappropriate. Specifying a percentage of the insurance contribution ensures the rights of insurance participants and makes it easier to calculate payments....

After this conference, the Provincial Farmers' Association will synthesize comments on the draft Law on Social Insurance (amended), send it to the drafting agency for appropriate adjustments to the actual situation, ensuring the rights and legitimate interests of workers.

News and photos: Tran Dung

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