"Only when eating workers' meals can one understand why workers are forced to return to their hometowns"

Answering questions before the National Assembly, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung shared that only by living and eating with workers can one understand that workers who cannot survive in the city have to take their children back to their hometowns...

Minister of Finance: Paradox of "bosses" not being required to pay compulsory social insurance

Finance Minister Ho Duc Phoc was the one who "shared the fire" with Minister Dao Ngoc Dung during the question and answer session on the morning of June 6 (photo: Pham Thang).

Responding to the case of a sole proprietor who has paid social insurance for many years but is now not receiving a pension, Minister of Finance Ho Duc Phoc informed that, implementing Decree 01 on expanding social insurance coverage, Vietnam Social Security has provided guidance to a number of provinces on the issue of social insurance payment. Accordingly, 54 provinces and cities have implemented compulsory insurance collection for 4,200 subjects since 2003, and stopped in 2016. However, there are still more than 1,330 subjects who will continue to pay insurance until 2020.

According to the Minister of Finance, collecting social insurance contributions is not inherently problematic, but it is problematic according to legal regulations. Specifically, according to the Social Insurance Law, social insurance participants are required to have a labor contract. However, the business owner does not have a collective contract, only a contract between the owner and the employee. Therefore, the employee is required to pay social insurance.

Minister Phuc emphasized that, in essence, business owners are also workers and have income, but participating in compulsory social insurance is for the wrong people.

"We are discussing with the Ministry of Labor, Invalids and Social Affairs how to amend the Law on Social Insurance to allow business owners to participate in compulsory social insurance," said Minister Ho Duc Phoc.

Regarding support for workers, the Minister of Finance said that in 2021, the country spent 47,356 billion VND from the Unemployment Insurance Fund to support workers affected by the Covid-19 pandemic. In 2023, the fund balance will be 59,357 billion VND.

“We are designing a support package to submit to the Government and the National Assembly, spending about VND23,000 billion from the Unemployment Insurance Fund to support workers during this difficult period. Thus, the fund balance is VND39,405 billion. We are paying special attention and using all policy mechanisms to support workers,” said the Minister of Finance.

Minister Phoc analyzed that Vietnam's economy is a market economy, oriented towards socialism, so the labor issue also follows the market. Therefore, according to the Minister of Finance, vocational training needs to follow correct forecasts, grasp the market, and meet the needs of workers to be successful. Besides, it is necessary to arrange and organize vocational schools to be professional and modern to be successful.

Minister of Labor, Invalids and Social Affairs and Prime Minister Pham Minh Chinh at the question-and-answer session on the morning of June 6 (photo: Pham Thang).

Chairing the question-and-answer session, National Assembly Chairman Vuong Dinh Hue said that this afternoon, the Minister of Labor, War Invalids and Social Affairs and relevant Government members will continue to answer questions on the first group of issues for the Minister of Labor, War Invalids and Social Affairs. After that, the question-and-answer session will continue with the second group of issues, in the field of ethnicity.

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