The Ministry of Labor, Invalids and Social Affairs has responded to the Vietnam Textile and Apparel Association on its proposal to research and reduce the social insurance payment rate. Regarding this recommendation, the Ministry of Labor, Invalids and Social Affairs said that social insurance is a guarantee to replace or compensate part of an employee’s income when their income is reduced or lost due to illness, maternity, or accident. labor, occupational diseases, reaching the end of working age or death, on the basis of contributions to the Social Insurance Fund.
Therefore, regulations on social insurance payment rates need to be considered in determining models, policies, benefits of employees and their relatives, coverage levels, and other factors. macroeconomics, economic development, GDP per capita.
According to the Ministry of Labor, Invalids and Social Affairs, Vietnam is one of the countries with a relatively high social insurance payment rate compared to some countries in the region. However, according to the benefit ratio, the benefits of sickness and maternity benefits are considered high, especially the retirement benefits. Currently, the pension level in Vietnam is the highest in the world with a maximum rate of 75%, while other countries maintain it at 35 – 50%.
The Ministry of Labor, Invalids and Social Affairs believes that adjusting the social insurance payment rate will have a great impact on social insurance participants in particular and society in general. Therefore, keeping the current social insurance payment rate will contribute to ensuring the stability of social insurance policies and workers’ rights.
The 2014 Social Insurance Law stipulates that the compulsory social insurance payment rate for employees and employers is 32%. Of which, employees pay 10.5%, including social insurance 8%, health insurance 1.5%, unemployment insurance 1%; The employer pays 21.5%, including social insurance 17.5%, health insurance 3% and unemployment insurance 1%.
The draft Law on Social Insurance (amended) has been submitted to the National Assembly by the Government, the social insurance payment rate remains the same as current regulations to ensure stability and sustainability of social insurance policy.
