Nearly 70% of working-age people have not had their employment information collected, making it difficult for them to access and benefit from social policies.
In the draft revised Employment Law currently seeking comments, the Ministry of Labor, War Invalids and Social Affairs devotes a chapter to labor registration to manage resources and ensure policies for them. The country currently has 52.1 million workers, but only nearly 17.5 million people paying social insurance (SI) have information. The remaining more than 34 million people in the informal sector have not had their information collected and managed.
The above reality reveals many shortcomings, especially when disbursing support packages during the Covid pandemic. In addition to the VND38,000 billion package from the Unemployment Insurance Fund, which was disbursed beyond expectations due to available information in the system, the disbursement rate of the remaining packages was very low due to lack of information.
For example, the self-employed - the group most affected - are the most difficult to reach because we do not know where they are or what they do. The leader of the Ministry of Labor, War Invalids and Social Affairs, when summarizing the 62,000 billion VND package, once admitted that "some neighborhood leaders had to go nearly ten times to meet workers to survey and then provide support".
Street vendors on Cau Go Street (Hanoi). Photo: Ngoc Thanh
Labor registration will apply to both formal and informal contract workers, including four groups of information: Basic information includes full name, personal identification, current residence; professional information includes general education, occupation, university or national vocational skills certificate; employment information includes specific job, workplace; and finally , social insurance and unemployment insurance (BHTN) information.
Registration information is updated in the employee database, linked to the national database. This is considered a national asset, protected by the State, managed by the Ministry of Labor, War Invalids and Social Affairs.
The Ministry of Labor, War Invalids and Social Affairs also proposed to include three groups of workers in the unemployment insurance program, including: People with fixed-term contracts of one month or more; part-time workers whose total monthly salary is equal to or higher than the mandatory social insurance salary, at least half of the minimum monthly salary in region I; business managers, controllers, representatives of state capital, representatives of enterprise capital at the company and parent company, managers and operators of cooperatives and cooperative unions receiving salaries.
The proposal aims to expand coverage when the number of people participating in unemployment insurance has only reached 32.5% of the working-age workforce, while the target is to cover 45% by 2030. According to the drafting agency, the current law does not include workers with contracts of one to less than three months in the unemployment insurance coverage, while this is a group with a high risk of losing their jobs and is also covered by compulsory social insurance.
In addition to expanding the scope of contributions, the Drafting Committee of the revised Employment Law considers not to fix the current 1% unemployment insurance contribution rate but to make it flexible, up to a maximum of 1%. Nationwide, 14.7 million people pay unemployment insurance. During the 2015-2023 period, the number of workers participating will increase by an average of 6% per year.
Hong Chieu
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