Businesses paying social insurance contributions below regulations will directly affect pensions

Xuyên Đông |

According to Vietnam Social Security, there is currently a situation where businesses pay social insurance below regulations, directly affecting the pension level later.

Vietnam Social Security said that the Central Policy and Strategy Committee has just held a meeting of the Steering Committee and the Editorial Team to develop the Project to summarize Resolution No. 28-NQ/TW, dated May 23, 2018 of the 12th Party Central Committee on social insurance policy reform.

Speaking at the meeting, Mr. Nguyen The Manh, Deputy Head of the Central Policy and Strategy Committee, said that it is necessary to continue to improve the mechanism to support people participating in social insurance, especially low-income workers, informal sector workers and voluntary social insurance participants.

Accordingly, there needs to be appropriate support policies for people to maintain long-term participation, limiting the situation of withdrawing one-time social insurance when facing economic and employment difficulties.

At the same time, it is necessary to have solutions to support small and micro enterprises and individual business households in difficult times to maintain social insurance contributions for employees, ensure social security rights and avoid interruption of the social insurance participation process.

Regarding management work, Mr. Nguyen The Manh said that currently the settlement and payment of social security regimes are still scattered among many agencies, lacking data interconnection and not synchronized in implementation organization.

From there, he suggested that it is necessary to unify management focal points according to the principle of "one task is assigned to one agency to implement" in order to improve the efficiency of operation, supervision and data connection nationwide.

Director of Vietnam Social Security Le Hung Son said that the Vietnam Social Security agency has participated throughout the project development process and has contributed opinions many times at the Conferences of the Steering Committee.

This draft is elaborately prepared, closely following the direction of the Politburo and fairly fully reflecting the reality of policy implementation in ministries, branches, and localities.

Mr. Le Hung Son highly appreciated the Steering Committee and the drafting team for harmoniously combining strategic orientation and practical requirements to build appropriate goals and solutions. From the assessment content to the task system, everything is expressed closely and clearly oriented.

Regarding new challenges arising, the Director of Vietnam Social Security said that it is necessary to add content on "non-traditional security" in the preliminary review process of Resolution 28-NQ/TW.

Accordingly, fluctuations such as the Covid-19 pandemic, the Russia-Ukraine conflict, or geopolitical tensions in the Middle East have directly impacted the economy, businesses, and the lives of workers. Therefore, a multi-layered social security system needs to be able to forecast and adapt to new risks.

The Director of Vietnam Social Security also proposed to strengthen sanctions to handle the situation of late payment and evasion of social insurance contributions. Although the law has regulations in the Penal Code, the implementation still faces many obstacles due to the lack of synchronization between the Law on Social Insurance, the Law on Handling of Administrative Violations and related criminal regulations.

Mr. Le Hung Son proposed to study a roadmap to reduce the retirement age for social pension benefits from 75 to 70 years old in order to expand the coverage of social security for the elderly.

Regarding the social insurance contribution level, Director of Vietnam Social Security Le Hung Son emphasized the need to overcome the situation of enterprises paying social insurance below the prescribed level.

According to the objectives of Resolution 28-NQ/TW, the minimum contribution level must reach 70% of the employee's income. However, in reality, many businesses currently only contribute at a rate of 50-60%, directly affecting the rights and pension level of employees later.

Xuyên Đông
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