HCM City (VNS/VNA) - Farmers and workers in the informal sector areoften reluctant to buy voluntary social insurance because they do notunderstand its benefits and lack knowledge about the programme, according tothe Vietnam Social Security.

Voluntary social insurance regulations, which took effect in 2008, provideinsurance for many low-income farmers and informal-sector workers.

If participants pay social insurance premiums for at least 20 years, men over60 and women over 55 will be entitled to pension payments after they retire.

As of the end of last year, the country had 221,000 holders of voluntary socialinsurance cards.

The Government targets having more participants, including 23 million peoplewho work in agriculture and nearly 14 million labourers in the informal sector.

Although the programme provides coverage to society’s most vulnerable groups,many intended beneficiaries are unable to participate or know little about thebenefits.

Nguyen Van Chin, a farmer in HCM City’s Nha Be district, said that he wouldhave to spend 700,000 VND of his monthly income of 5 million VND (220 USD).

“My family doesn’t even have enough money to buy food,” he said.

Nguyen Thi Thuy, 50, also a farmer, said she heard about the programme lastyear, but was unsure about its benefits.

Thuy earns between 4 million VND and 5 million VND a month from her job ofthree years.

The money is barely enough to keep her family afloat, so setting money aside tobuy insurance for a pension is a luxury.

“I know buying this insurance would be good when I can no longer work,"she said. "But will I have the money to buy food for my children tomorrow?How can I think about 20 years from now?"

A lack of awareness and a paucity of clear information and understanding aboutthe scheme are barriers that the Government is trying to overcome.  

Unlike Thuy, Pham Thi Lan Anh, 48, who has a high income as a hairdresser, isunsure whether she is eligible to take part in voluntary social insurance.

Many people believe that formal compulsory social insurance is the onlyavailable programme.

"I would have to pay insurance fees for 20 years before I become eligiblefor the retirement allowance, so I would be 68. Should I pay fees for five or10 years at one time? Can I meet the requirement in only seven years, and thenreceive a pension?” she asked.

"I know there are different rates that payers can choose from, with thelowest rate equal to the minimum wage for one month and the highest rateequivalent to the minimum wage for 20 months, but I have no idea how much theinsurer will pay us after 20 years, or where I can go to pay the insurancefees," she said.

Duong Thi Thanh Thuy, a representative of the Vietnam Social Security agency inHCM City, said that farmers and informal workers could pay for voluntary socialinsurance in increments of three months, six months, a year, or 10 years.

Beginning this year, low-income farmers and informal workers now receive a 10to 30 percent discount from the State when they join voluntary socialinsurance, according to Thuy.

The benefits of voluntary social insurance are generally not as attractive ascompulsory social insurance.

Voluntary insurance offers retirement payments and a one-time payment to thefamily after the insurance owner’s death, while compulsory insurance has thesame benefits but also includes health care, maternity care, and work accidentsor job-related illnesses.

Compulsory social insurance is based on the income of formal workers who payabout 10.5 percent of their monthly income, while their companies pay about 20percent.

Voluntary social insurance is based on the income level of farmers and informalworkers, who contribute 22 percent of their income each month. 

Around 5,000 people take part in the voluntary social insurance programme inHCM City, which has a population of nearly 13 million.-VNS/VNA