Hanoi (VNA) - An increase in social insurance premiums that will accompany newrules that take effect next year will benefit workers, officials claimed.

At arecent online discussion on the Government portal, Le Quan, Deputy Minister ofLabour, War Invalids and Social Affairs, said that the change in socialinsurance premium based on the actual monthly salary of workers was necessaryto ensure their benefits once they stopped working.

Itwould lend stability to workers’ lives after retirement, he said.

Accordingto Quan, at present, an employee’s social insurance contribution is based on wages andperks mentioned in the labour contract.

FromJanuary 1, 2018 onwards, it will cover wages, perks and other allowances,including those based on designation, responsibility, hazardous work andseniority, that are not mentioned in labour contracts.

However,Quan added that not all allowance and additional payments will be includedcalculating a worker’s social insurance contribution. Bonuses, telephone,patrol and lunch allowances will not be included, because they depend on theproductivity of workers and the effectiveness of production and businessactivities of enterprises.

Quansaid the new changes aim to address the situation of workers earning goodincomes suffering after they retire because of low social insurancecontributions.

Bui SyLoi, Deputy Chairman of the National Assembly’s Social Affairs Committee,attributed the low post-retirement pensions to the fact that most enterprises’social insurance contributions were based on the minimum wage.

Hesuggested that a regulation based on actual wages or income of employees shouldbe considered carefully, so as to increase pensions and ensure better livingstandards.

Talking about the new policy’s impact on enterprises, Quan said:“Basically, the level of social insurance contributions of enterprises will notincrease much after the new regulation takes effect. On some enterprises, itwill not have any impact.”

🍌[VSS to cut social insurance debt to under 3 percent]

Regarding the new calculation of pension for female workers fromthe beginning of next year, that many have complained is “unfavourable,” Quansaid the Ministry of Labour, War Invalids and Social Affairs has coordinatedwith the Vietnam Social Security to review its impacts and submitted a reportto the Government. The ministry is waiting for the government’s decision on theissue, he added.

Under current policy, male and female retirees who have boughtsocial insurance for 30 and 25 years, respectively, are entitled to enjoy fullmonthly pension, equivalent to 75 percent of their monthly salary.

Under the new policy, female labourers have to pay five premiumsfor five additional years to enjoy the maximum pension of 75 percent of theirmonthly salary.

Tran Dinh Lieu, Deputy General Director of the Vietnam Social Security(VSS), said the agency had prepared well for the changes in social insurancepolicies, strengthening dissemination, speeding up administrative reforms andproviding training for enterprises in social insurance-related work.

Lieu also said that as of January 1, next year, violations ofthe Law on Social Insurance, health insurance and unemployment insurance willbe dealt with in accordance with the amended Penal Code.

He said that the 2015 Penal Code, which takes effect next year,has three supplementary articles providing for separate offenses in the fieldof social insurance, with fines of up to 3 billion VND (132,000 USD) andimprisonment of up to 10 years.

At present, the VSS is cooperating with the Supreme People’sCourt to develop a resolution of the Judicial Council on implementationguidance for the above-mentioned articles, Lieu said.

Evasion of social insurance happens in diverse ways and undervarious forms.

"Our view is not to criminalise all social insurance lawviolations,” he said, but added that the “criminal treatment” for theviolations “is also to ensure fairness in business."

Sharing this opinion, Loi said the three supplementary articles on social insuranceviolations would improve legal compliance and encourage a harmoniousrelationship between employers and employees.-VNA