Insurance coverage

Vietnam urged to expand social insurance coverage and limit lump sum claims | Company

The workers come to manage the procedures at the Vietnamese social security branch in Quynh Luu district, Nghe An province. (Photo: VNA)

Hanoi (VNA) – Experts recommended Vietnam work to expand social insurance coverage and limit the number of people applying for lump sum payments.

Addressing a seminar in Hanoi on April 27, Le Hung Son, deputy director general of Vietnam’s social security, said the 7th meeting of the 12th term of the Party Central Committee issued Resolution No. 28-NQ/ TW on the reform of social insurance policy in order to make social insurance a real pillar of the country’s social security system and gradually expand its coverage towards universal social insurance coverage.

According to International Labor Organization (ILO), this resolution contains many progressive regulations which come close to the social security standards of international conventions and the recommendations of the ILO. Therefore, to institutionalize the views of the Party and the State stated in the resolution, it is necessary to amend and supplement many relevant legal documents, including the Social assuranceLaw, in a roadmap adapted to the socio-economic conditions of the country.

Robert J. Palacios, social security expert for East Asia and the Pacific at the World Bank, said it was very important to change the law on social insurance, noting that Vietnam has the speed Asia’s fastest aging population, which is why social insurance coverage needs to be expanded and the law revised.

Vietnam should step up measures to increase the participation rate in the social insurance system, he noted.

Christophe Lemiere, WB Human Development Program Manager for Vietnam, attributed the modest participation in compulsory social insurance in the country in part to the long minimum insurance contribution period needed to claim pensions (20 years ).

Vietnam is also the only country to allow workers to claim lump sums, which has increased pressure on the social security system, he said, pointing out that the state has also had to provide income support. to a large number of elderly people who do not participate in social insurance. the system.

If the law on social insurance extends the groups subject to compulsory social insurance to all employees (public sector, private enterprises and business households), the number of participants in social insurance will also increase.

The government should also limit the number of people claiming lump sum paymentswhile covering 30-50% of voluntary insurance premiums for low-income people. Only then can Vietnam reach the target of 60 percent of its workforce participating in social insurance by 2030, Lemiere added./.