A social security officer introduces the voluntary insurance policy for a citizen. (Photo: VNA) Hanoi (VNS/VNA) - Many businesses have scaled down production andreduced their workforce due to the COVID-19 pandemic, leading to a decrease inthe number of those participating in social and health insurance, as well as anincrease in unpaid social security debts, experts have said.
As a result, the Government’s targets on sustainable development ofparticipants in social insurance will be difficult to achieve if no drasticmeasures are taken.
Pham Xuan Toan, director of southern Binh Thuan province’s Social Security,said the COVID-19 pandemic had a great impact on many businesses in theprovince, proven by the adjustment of participants in social security andhealth insurance.
Figures from March 1 to the end of June showed that more than 740 enterprisesin the province, accounting for 47.5 percent of the total, have stoppedparticipating in health insurance for more than 12,240 workers. These workerseither quit their jobs or requested unpaid leave.
More than 7,000 employees have suspended social insurance contributions.
Toan said these businesses were mainly in the fields of tourism, restaurantsand hotels, shoe production, and garment and textile.
The reduction of social insurance and health insurance participants hadaffected the sector’s targets, he said, adding that the unit had urgedbusinesses to pay debts to ensure the interests of employees.
Binh Thuan is not the only province affected by the COVID-19 pandemic.
Reports from Vietnam Social Security showed that many enterprises across thecountry scaled down their production or temporarily suspended operations.
People's incomes decreased, so many people are not continuing theirparticipation in voluntary social insurance or household health insurance. Thisled to a decrease in the number of participants in social and health insuranceschemes.
The unpaid debts for social and health insurance have increased due toenterprises’ financial difficulties.
By the end of August, more than 15.3 million people participated in socialsecurity scheme, accounting for 31.2 percent of the workforce; 12.8 millionpeople participated in unemployment insurance, accounting for 26 percent of theworkforce; and 86.4 million people participated in health insurance, covering89.2 percent of the population.
Although the number of people participating in voluntary social insurance andhealth insurance increased compared to last year, the number of thoseparticipating in compulsory social insurance and unemployment insurance hasdecreased sharply.
The social insurance revenue has been lower than the same period last year, andthe debts have reached 21.4 trillion VND (925 million USD), an increase of 0.4 percentcompared to the same period last year.
The Vietnam Social Security estimates that the sector need to attract more than1.8 million people to join social insurance, 1.4 million people to joinunemployment insurance, and 1.6 million people to join health insurance by theend of this year to achieve the Government’s targets.
Vietnam Social Security and local social security have made efforts to promotethe reform of administrative procedures and the application of informationtechnology in payments.
In the past eight months, the country has paid 151 trillion VND (6.5 billionUSD) in social insurance and 1.7 trillion VND (73.5 million USD) inunemployment insurance for beneficiaries.
Compared to the same period in 2019, the number of people entitled to thesickness and maternity benefits has decreased, but the number of peopleeligible for monthly social insurance, lump-sum social insurance andunemployment insurance has increased.
Deputy General Director of the Vietnam Social Security Dao Viet Anh has askedthe units to review and reassess the targets.
Addressing the challenges on the development of compulsory social insurancetargets in this year, Deputy General Director of the Vietnam Social Security TranDinh Lieu said it was possible to ensure the revenues this year.
Local social insurance agencies needed to implement measures to reduce debts ofsocial insurance and health insurance for hard-hit businesses and strengtheninspections on businesses delaying debt payments./.
VNA
