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Government Proposes Mandatory Social Insurance for Non-Contract Workers

Government Proposes Mandatory Social Insurance for Non-Contract Workers

The Vietnamese government has put forth a proposal to amend the Social Insurance Law, suggesting that workers without formal contracts be mandated to participate in the social insurance scheme. This decision was discussed during a session of the National Assembly's Standing Committee on September 23.

According to Minister of Home Affairs Nguyen Tien Hai, the proposed amendments do not alter the scope of the existing law but aim to enhance regulations regarding the organization of political systems and local government structures. The initiative seeks to ensure consistency in the Social Insurance Law and provide a legal foundation for its implementation.

The draft law specifies that individuals currently receiving monthly social retirement benefits will not be required to participate in mandatory or voluntary social insurance. Additionally, it introduces provisions that allow the National Assembly's Standing Committee to decide on mandatory social insurance participation for workers without labor contracts and those engaged in digital platforms.

This proposal is part of a broader effort to expand social insurance coverage to include workers in non-traditional employment. The government plans to conduct a comprehensive assessment to develop a new resolution regarding wage policies and social insurance for submission to the relevant authorities.

Another significant aspect of the proposed amendments is the introduction of supplementary retirement insurance, which will allow individuals to participate voluntarily. This insurance aims to complement the mandatory social insurance retirement scheme and will be funded through contributions from employers, employees, or both.

The draft law also includes provisions for the government to detail the payment methods for pensions and social insurance benefits, including payments through beneficiary accounts. Furthermore, the government will define the voluntary social insurance contribution period required for maternity benefits and clarify the funding sources for these benefits.

During the review process, Nguyen Dac Vinh, Chairman of the Culture and Society Committee, expressed general support for the government's proposal, emphasizing the importance of gradually expanding participation to ensure social security rights and meet the goals outlined in Resolution No. 28. However, he urged the government to carefully evaluate the implications of mandating social insurance for non-contract workers and those in the gig economy.

The committee also recommended that the government clearly define the target groups required to participate in mandatory social insurance, based on a thorough analysis of legal and practical foundations. Additionally, they suggested reviewing and amending related labor laws to ensure coherence across various legal frameworks.

Concerns were raised regarding the proposed supplementary retirement insurance, with some committee members questioning the appropriateness of limiting participation to workers in this insurance scheme. They urged the government to clarify its proposal and establish mechanisms for managing and utilizing the fund, as well as the responsibilities of relevant authorities and organizations.

In conclusion, the Culture and Society Committee highlighted the need for careful consideration before amending regulations, particularly in light of the absence of comprehensive impact assessments and data on the effectiveness of existing policies.

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