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Ministry proposes adding further taxpayers to compulsory social insurance

Thursday, 16/03/2023 | 11:12:03 [GMT +7] A  A

The Ministry of Labour, Invalids and Social Affairs (MoLISA) has proposed to add a group to the list of people paying compulsory social insurance.

The Ministry of Labour, Invalids and Social Affairs proposes adding a group of people to join compulsory social insurance. VNA/VNS Photo

The group includes individual business households, business managers, unpaid managers of cooperatives and part-time employees.

According to the ministry, the Law on Social Insurance still misses this group of people who have the need and ability to participate in compulsory social insurance.

The ministry is collecting experts' opinions on the draft amended Law on Social Insurance to expand coverage.

There are now more than 5.1 million business households across the country, six times larger than the total number of enterprises.

Of which, there are more than 1.7 million households declaring and paying taxes, according to the tax authority.

However, a small number in this group participates in voluntary social insurance.

Regarding cooperatives, data from the Ministry of Planning and Investment shows that, in 2022, the country had about 29,000 cooperatives, with nearly six million members. They are employing about 970,000 workers. However, up to now, only 7,000 cooperatives have registered to participate in compulsory social insurance for about 40,000 employees.

Survey results in some localities showed that many business managers and unpaid managers of cooperatives have the desire to participate in compulsory social insurance, MOLISA said.

With these additional subjects, there will be an additional 5.1 million people participating in compulsory social insurance.

For compulsory social insurance policy, each unpaid business or cooperative manager must pay 25 per cent of the salary rate based on whatever they choose to contribute to as the monthly insurance premium.

For part-time employees participating in compulsory social insurance, the employees and employers will contribute 25 per cent to social insurance together. The employers have to contribute 17 per cent to the sickness, maternity, workplace accident, retirement fund, and survivorship allowance. The employees will contribute 8 per cent.

This will result in additional fees for both the employee and the employer. However, in return, employees and employers both receive benefits from contributing to the social insurance fund, MOLISA said.

As of 2022, 17.49 million people across the country had joined social insurance, accounting for 33.89 per cent of the labour force. In which, the number of people participating in compulsory social insurance is 16.03 million.

Source: Vietnam News