Compulsory social insurance for foreign workers discussed
A workshop took place in northern Hai Phong city on May 23 to gather opinions on a draft decree guiding the enforcement of compulsory social insurance for foreigners working in Vietnam.
A foreign teacher at a Vietnamese school (Photo: VNA)
Hanoi (VNA) – A workshop took place innorthern Hai Phong city on May 23 to gather opinions on a draft decree guidingthe enforcement of compulsory social insurance for foreigners working inVietnam.
The event was co-held by the Ministry of Labour,Invalids and Social Affairs (MoLISA) and the Vietnam Social Insurance (VSI).
Addressing the workshop, VSI Deputy Director Tran DinhLieu said it is necessary to formulate a decree guiding the application ofmandatory social security scheme to foreign citizens in Vietnam since thecountry has integrated deeply into the region and the world and the move is anormal international practice that complies with the International Labour Standards(ILO).
The 2014 Law on Social Insurance requires thecompulsory enrollment of foreign workers in the social insurance scheme inorder to ensure the equality and equal welfare for these people when working inVietnam, Lieu noted.
However, differences in insurance premium andremuneration rates between countries alongside currency- and tax-related issueshave hindered the progress of concluding the decree, he added, stressing theimportance of opinions and censures from policy-makers, enforcers, employersand employees to complete the decree.
Tran Hai Nam from the MoLISA’s Department of SocialInsurance cited the fact that the number of foreign workers in Vietnam wasrecently estimated at 84,000, almost seven times higher than 12,600 in 2004,most of them are highly skilled and have obtained work permits.
Clause 2, Article 2 of the 2014 Law on SocialInsurance stipulates that employees who are a foreign citizen working inVietnam with work permit or practice certificate/license granted by a competentVietnamese agency shall be entitled to compulsory social insurance incompliance with the State laws.
Therefore, the MoLISA’s draft decree proposed requiringforeign workers to take part in all five social insurance programmes – pensionand insurances for sickness, maternity, vocational injuries and diseases anddeath.
The decree should clarify those to be subject to andexempted from the mandatory insurance, said Hiroshi Karashima, President of theJapan Business Association in Vietnam.
Besides, Vietnam also needs to sign bilateral agreements with other countriesto eliminate dual social insurance premiums in which a foreign worker isrequired to pay social security taxes to both countries.
Other attendees shared an opinion that as foreignersonly work in a short-term contract in Vietnam, they should be only eligible toinsurance for sickness, maternity and work-related injuries.
The decree must take into account the current taxationregulations and protection of human rights, added Lieu.-VNA
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