In a recent report submitted to the Government, the Social Insurance of Vietnam has proposed solutions to overcome difficulties in implementing mandatory social insurance, health insurance, and unemployment insurance for individual business owners.
200 ELIGIBLE INDIVIDUALS STILL WAITING FOR PENSION
The Social Insurance of Vietnam has stated that after reviewing the data, the total number of individual business owners who have participated in mandatory social insurance as of May 30th, 2023, is 3,567.
Among them, 1,444 individuals have stopped paying temporarily, with the period of paying social insurance temporarily recorded; 1,423 individuals continue to participate; 28 individuals have been refunded their payments. The number of individuals who have been granted retirement and death benefits is 275 individuals; 397 individuals receive one-time social insurance benefits.
In terms of the period of paying social insurance, 1,334 individuals have paid for over 15 years. Among them, 380 individuals have reached retirement age and 200 individuals are eligible for pension benefits (reaching retirement age and having paid social insurance for a minimum of 20 years) but have not yet been resolved.
According to the regulations, individual business owners are not required to participate in mandatory social insurance.
Due to the incorrect implementation of the law, individual business owners have not had their period of paying social insurance counted for the purpose of receiving benefits, including many cases that are eligible for pension benefits.
To resolve the issue for workers, the Social Insurance of Vietnam has proposed 3 solutions.
Solution 1: Count the period of paying mandatory social insurance, unemployment insurance for the purpose of receiving these benefits according to the regulations of the law, and include this content in the Social Insurance Law (amended).
The Social Insurance of Vietnam believes that this solution ensures the principle of paying and receiving according to the regulations of the Social Insurance Law, Health Insurance Law, and Employment Law; timely resolve social insurance and unemployment insurance benefits, especially retirement benefits for cases that are eligible for pension.
Cases that have reached retirement age and have paid social insurance for at least 10 years can voluntarily make additional social insurance contributions to receive immediate pension benefits. At the same time, thoroughly address the existing problems and difficulties in the implementation of mandatory social insurance, health insurance, and unemployment insurance for individual business owners.
Resolving retirement benefits for them to stabilize their lives after reaching retirement age will prevent prolonged complaints and grievances.
However, as the law does not clearly define individual business owners who are both owners and workers like workers under labor contracts at business households, there is currently no legal basis to resolve the payment of social insurance benefits for the period of paying with the title of individual business owner.
FINDING THE OPTIMAL SOLUTION FOR WORKERS
With solution 2, the Social Insurance of Vietnam proposes to refund the payments and recover the amounts paid for mandatory social insurance, unemployment insurance for all individual business owners.
Resolving it in this way, many business owners have reached old age and will no longer have the opportunity and time to participate in social insurance to receive retirement benefits, which will cause difficulties in their lives when they become old.
As a result, it will affect social security and create pressure on the state budget when providing social assistance to the elderly. It may lead to prolonged complaints and grievances, as seen recently.
Workers will suffer because they have participated in social insurance for a long time. Many cases have paid for many years in the hope of saving money to ensure their lives in old age.
Without a solution to receive retirement benefits, they will have no other options to have financial resources for their living expenses when they stop working.
Currently, there are 200 individuals who are eligible in terms of age and have paid social insurance for a minimum of 20 years to receive pension benefits; 380 individuals have reached the required age and have paid for a minimum of 15 years and wish to voluntarily make additional social insurance contributions to complete the required period and receive immediate pension benefits.
Solution 3: Count the period of paying mandatory social insurance, unemployment insurance for the purpose of receiving these benefits according to the regulations of the law for individual business owners and include this content in the Social Insurance Law (amended) like Solution 1.
For cases where business owners want to change their preferences and have a need for repayment, the Social Insurance agency will refund the amount paid into the retirement and death fund, and the amount paid into the Unemployment Insurance Fund but has not received unemployment benefits.
With this solution, many workers who have participated in social insurance for a long time will be disadvantaged. If their wishes are fulfilled, they will lose the opportunity and time to participate in social insurance to receive retirement benefits, which will cause difficulties in their lives when they become old and affect social security.
Moreover, the current law does not clearly define the repayment process and whether an equivalent interest amount should be paid on the amount and time paid, if any, and if so, how much…
If there is no additional compensation or comparison between the repayment and participation in social insurance while receiving pension benefits for this period, there will be a difference.
Because the wage amount is adjusted based on the consumer price index for each period, using it as a basis for calculating one-time social insurance benefits will yield much higher benefits than the amount paid for social insurance and unemployment insurance…
Based on the impact assessment of the above options, the Social Insurance agency recommends choosing Solution 1 to resolve the difficulties for individual business owners.
