A quick survey shows that companies and associations place a high value on the meaning, superiority and humanity in many provisions of the revised draft Social Security Act – Photo: MILLIONS
Opinions and reflections on this basis for calculating social insurance premiums were synthesized by the Private Economic Development Research Council (referred to as the Research Council) and sent to Prime Minister Pham Minh Chinh.
Contributions to social security must be assessed in practice
Survey results showed that most appreciated the significance, superiority, and humanity in the revised Social Security Act bill. The basis for calculating the compulsory social security premium is content that has far-reaching effects, from the well-being of workers to the competitiveness of companies and the economy.
Since then, the drafting committee believes that it is necessary to study carefully, evaluate practical conditions, consider international and regional experiences comprehensively, especially in the current context, which is very difficult to choose a viable and reasonable method.
Specifically, the group is considering two options for determining base salary.
Option 1, the calculated salary includes salary and salary allowances, other additional amounts that can be determined with a specific salary along with the salary agreed in the employment contract.
Option 2, calculation of monthly salary including salary and allowances, additional amounts excluding gratuities, other supports and allowances not related to the performance of work or title in the employment contract in accordance with the provisions of the law.
Proposes to maintain the old basis for calculating social security premiums
If you choose option 1, companies and workers will not have to bear the pressure of sudden cost increases. However, state management bodies need to find plans and solutions to solve the problem of “death in payment, evasion of payment, social security debt”.
Experts say data-driven governance, fiscal databases, social insurance and tough sanctions are needed to gradually overcome this situation.
Labor experts said there was a need to strengthen enforcement, data-driven management, tax databases, social insurance combined with strict sanctions to limit late payment, payment evasion and social security debt – Photo: NAM TRAN
If you choose to increase the basis for calculating social security premiums, there are two problems, which can make late payment and evasion of social security payments serious.
In addition, this adjustment will increase the labor costs of companies, in the context in which this cost has been referred to as “the highest in ASEAN”. It should affect the competitiveness of companies, national competitiveness, causing a “reverse effect” on the objective of attracting FDI and private investment.
Based on these assessments, the Research Council presents proposals to the Prime Minister. Specifically, the law writing committee works closely with companies and associations.
Thus, evaluating the reasonableness and viability of the proposed plans, focusing on the analysis of the plan to maintain the current regulations in the basis for calculating social security premiums.
At the same time, clearly define the regulations regarding subsidies and additional amounts to be calculated as social security premiums, avoiding situations where governing bodies, companies and employees have diverging interpretations.
According to statistics, by the end of 2022, the whole country has more than 2.13 million employees whose social insurance contributions are 1-3 months overdue.
The number of people who owed insurance contributions for 3 months or more was 440,800 people, 213,400 people were “suspended” in companies that were dissolved or ceased to operate.
The debt represents 17.4% of all workers enrolled in compulsory social security.