Research to expand subjects participating in compulsory social insurance
Contributing opinions to the draft Law amending and supplementing a number of articles of the Law on Social Insurance (BHXH), the Ministry of Finance proposed to study expanding the subjects of compulsory social insurance participation for some groups of workers of working age who have jobs, receive salaries, wages, remuneration or income and have declared revenue or income to calculate and pay value-added tax, personal income tax (excluding people working in agriculture, forestry, fisheries, salt industry in households).
According to the proposal, the first group is tax declarants based on revenue, including people with income from service provision, transportation, delivery, sales, brokerage, transaction connections through digital platforms, technology applications, flexible job models and similar activities.
For this group, the Ministry of Finance proposes that employees participate in compulsory social insurance into the pension and survivorship fund, and are also allowed to choose to participate in the sickness and maternity fund. When declaring revenue to the tax authority, employees will simultaneously declare compulsory social insurance participation to the social insurance agency and transfer contributions to personal accounts managed by the social insurance agency, similar to the mechanism of paying supplementary pension insurance.
The second group is those who declare taxes based on salaries and wages, including people who have labor relations with agencies, organizations, businesses, and cooperatives but work under fixed-term contracts of less than 1 month; people who work part-time, receive hourly, daily or weekly salaries and have monthly income lower than the reference level.
According to the proposal, this group will participate in compulsory social insurance into the pension and survivorship funds and the sickness and maternity fund. The entire contribution level is paid by the employer or manager. Employees are still entitled to social insurance benefits according to current regulations.
Regarding the method of implementation, employers or managers will coordinate with employees to declare social insurance participation dossiers with the social insurance agency. When salaries and wages arise, employers or managers are responsible for paying compulsory social insurance in advance, and at the same time paying salaries and wages to employees.
Need to be carefully assessed for impact
According to the Ministry of Finance, this proposal aims to contribute to the goal of having about 60% of the labor force participate in social insurance by 2030, thereby expanding coverage and ensuring sustainable social security.
The Ministry of Finance believes that expanding the subjects participating in compulsory social insurance is also aimed at overcoming inadequacies in current regulations on social insurance subjects and contribution bases.
Responding to the above proposal, the Ministry of Home Affairs said that the expansion of compulsory social insurance participants needs to be carefully assessed for impact on both employers and employees.
At the same time, it is necessary to consider the impact of policies on the production and business activities of enterprises as well as the implementation of economic growth targets in the coming period.
