Components of the Social Security and Social Insurance System in Vietnam Today

- Social services

Social services here include medical services, medical prevention, accident prevention, special services for the disabled, the elderly, child protection, family planning... The introduction of This type of service in the social security system depends on the history of social security development, the economic and socio-political conditions in each country and the order of priority in the structure and scope of the services.

- Reserve funds

This is just a simple form of compulsory savings of employees and employers in a common fund and only when faced with risks, disability, old age and death... can the employee or heirs receive The right to withdraw this entire amount, both capital and interest (there are also cases of partial withdrawal when the employee is sick, has an accident or needs to buy a house, car...). This fund is also not used for periodic benefits to replace income upon retirement, disability, death... nor is it used to support others when facing risks, which does not carry the normal meaning of social security. , so this is only considered a transitional step towards establishing a social insurance fund.

- Reform period

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From the 60s - 70s of the 20th century, from Europe to North America and Oceania, the social security system following the welfare state model has developed in most developed countries, according to the principle of the State ensuring Providing people with all benefits from birth to death, social welfare costs are constantly increasing, as evidenced by the fact that in the 1970s in Western European countries, social welfare expenditures accounted for more than ¼ of total national income and the growth rate of social security costs quickly exceeds the national economic growth rate. Therefore, each country has introduced reforms appropriate to that country's economic and financial conditions. In general, the reform content can be summarized as follows:

(1) The trend of raising the retirement age to prolong accumulation time; Reduce the time to enjoy social security policies.

(2) Increase financial revenue of the social security system by measures such as increasing social insurance fees; increase the fee rates that employees and employers must pay; or convert and formalize from social security fee collection to social security tax.

(3) Reduce financial expenditures of the social security system like the UK in 1981 reduced support for sick people, pregnant women, disabled people, and unemployed people; Germany since 1977 has begun to reduce standard pensions, unemployment benefits and educational benefits, and in 1982 continued to reduce again in these categories; The Netherlands has reduced support for people with disabilities; Spain reduces unemployment benefits; The US government focuses on reducing many social welfare benefit programs.

(4) Reducing the burden of State responsibility through the participation of the private sector in the social security system. Countries in the reform process all allow the participation of the private sector in health insurance and pension insurance programs, especially supplementary pensions... This reform not only reduces the burden heavy financial burden from the State but also through competition from private companies to improve the quality of insurance products and prices.

In general, all efforts are being made to reform the social security policy system in general and social insurance in particular to gradually establish a modern, multi-layered, multi-pillar social insurance system. Each country will choose for itself a social security model that is appropriate to reality to apply and find the most suitable social insurance policy system for its country.

2.3.2. Vietnam's social security and social insurance system

2.3.2.1. Components of the social security and social insurance system in Vietnam today

There are many different broad and narrow views on social security, which also affects the review of the social security system. In this content, the social security system in Vietnam is understood to consist of three main parts: social insurance, social relief and social incentives.

Social insurance: Social insurance is the most important and meaningful part of the social security system in Vietnam, including long-term benefits, short-term benefits and health insurance. Currently, Vietnam Social Insurance has been reformed and is increasingly promoting its role in the lives of workers. Social insurance coverage has been expanded to all workers with two forms of mandatory and voluntary participation.

Social relief: is carried out mainly in two modes: regular relief and emergency relief. Relief is regularly applied to lonely elderly people, orphans, severely disabled people... in the form of money and in-kind to help these people stabilize their lives. Unexpected social relief applies

with subjects facing risks, misfortunes, natural disasters, droughts, fires..., with an immediate nature of helping people overcome tribulations and difficulties.

Social incentives: Is a specific part of Vietnam's social security system. Social incentives are material and spiritual incentives for those who have contributed to the country, the people, and the revolution (and family members) to recognize their noble contributions and sacrifices. Surname. This not only demonstrates the responsibility of the State, the community and the entire society, but also speaks to the nation's morality: "when drinking water, remember the source;" when eating fruit, remember the person who planted the tree.

In general, the current social security and social insurance system in Vietnam is compatible and consistent with the concept of social security and social insurance of the International Labor Organization in Convention 102 on minimum standards. However, it should be affirmed that no country in the world considers its social security and social insurance system to be complete and complete. Therefore, reforming and expanding protection regimes aims to provide more comprehensive protection for members of society, making people's lives better and better.

2.4. Viewpoints and policies of the Party, policies and laws of the State on social security and social insurance

2.4.1. The Party's views and policies on social security and social insurance

For many years, the Party and State have always paid attention to social security policies to improve people's lives. The Party's policies and guidelines on the social security policy system. Social insurance is increasingly being improved along with the process of developing a socialist-oriented market economy and international integration.

The platform for building the country during the transition period to socialism (1991) affirms: " Social policies ensure and continuously improve the material life of all members of society in terms of food, shelter and food. , travel, study, rest, medical treatment and physical improvement... Have policies to support and regulate income among segments of the population, sectors and regions, Platform for building and The country's development during the transition period to socialism (supplemented and developed in 2011) has developed into the viewpoint of " Completing the social security system and the term " Social security has been officially included in the Congress document". Assembly IX.

The 10th National Party Congress (2006) of the Party advocated: " Building a diverse social security system, strongly developing the social insurance and health insurance systems, moving towards universal health insurance...; diversify types of social relief . Resolution of the 6th Conference of the Party Central Committee (Term society, especially those of policy target groups and the poor ".

By the 11th National Party Congress (2011) and 12th (2016), awareness of the social security policy system continued to improve: social security policy was consistent with the process of socio-economic development; Expand the target audience and improve the effectiveness of the social security system to all people; create conditions for effective assistance to the disadvantaged, vulnerable or those facing risks in life; Develop and well implement social insurance policies, unemployment insurance, labor accident insurance, etc. Shift from humanitarian support to ensuring citizens' social security rights .

In general, Resolution of the 9th National Party Congress, Resolution of the 5th Plenum of the 5th Central Committee Session IX, Conclusion of the 8th Plenum of the 8th Central Committee Session IX on reforming wage policy, concretizing the "Project on Political Reform " Wage policies, social insurance and preferential benefits for people with meritorious services and the 1992 Constitution on workers' rights all have directional views on the development of social security and social insurance policies. Accordingly, social insurance is considered a main pillar, playing an important role in implementing social progress and justice; directly minimize risks for workers even while working (enjoying short-term maternity benefits, sickness, labor accidents, occupational diseases) and more importantly, ensure the lives of workers When you reach the end of working age, you will receive pension and health care for the rest of your life (long-term retirement, death benefits and health insurance). Social insurance regimes are built on the principle of benefit levels based on the level of contribution and sharing among social insurance participants, depending on the nature of each regime, contributing to the implementation of social security; ensure a reasonable correlation between subjects participating in social insurance in different periods; ensure a harmonious relationship between economic policy and social policy; Expanding subjects participating in social insurance, social insurance regimes and types of social insurance; Meets the country's socio-economic development requirements and industrialization process.

The 12th National Party Congress continues to emphasize the issue of ensuring social security; perfect social security policies in accordance with the socio-economic development process; Expand the target audience and improve the effectiveness of the social security system to all people; create conditions for effective assistance to the disadvantaged, vulnerable or those facing risks in life; Develop and well implement social insurance policies, unemployment insurance, labor accident insurance, etc. Shift from humanitarian assistance to ensuring citizens' social security rights. On that basis, the Party's documents related to social security and social insurance policies in the market economy have been issued, continuing the Party's views and guidelines. The Constitution and related legal documents have institutionalized the Party's views and policies on social security and social insurance: Article 34 of the Constitution (2013) ; Labor Code (2012); The Law on Social Insurance (2014), the Law on Occupational Safety and Health (2015), the Law on Employment (2013), ... all concretize the contents, principles, and regimes of social insurance policies at different levels but all Both aim to expand coverage and gradually improve the quality of social security for people. It can be said that, over 30 years of innovation, the main elements and regimes of social insurance, unemployment insurance, and health insurance policies have been basically shaped. Social insurance policy is established as a main pillar of the social security system in the socialist-oriented market economy, making an important contribution to achieving progress and social justice, ensuring political stability. politics - society, people's lives, sustainable development of the country . However, social insurance policy still has many limitations and inadequacies in terms of policy system, law and implementation organization; has not kept up with economic development

- society; has not adapted to the process of population aging and the emergence of new labor relations; The expansion and development of social insurance participants is still below potential; Social insurance coverage increases slowly...

On May 19, 2018, the Party Central Committee issued Resolution No. 28-NQ/TW on social insurance policy reform with 5 guiding viewpoints, which emphasize the viewpoint on developing the policy system . Social insurance is flexible, diverse, multi-layered, modern, and internationally integrated; towards universal coverage according to a roadmap suitable to socio-economic development conditions . The resolution also identifies the target for developing social insurance participants, which is to gradually and steadily expand the coverage of social insurance.

Social Insurance Government, aiming at the goal of social insurance for all people according to a roadmap suitable to socio-economic development conditions.

2.4.2. Social insurance policy in Vietnam through periods

2.4.2.1. The period before the provisional regulations on social insurance (before December 1961)

Documents of this period stipulate the principle content of social insurance, therefore social insurance regimes have not been comprehensively regulated, social insurance funds have not been formed. However, social insurance subsidies and allowances have had a huge impact, partly solving the difficulties in the lives of State employees and their families, strengthening the trust of the public. people join the Party and Government.

2.4.2.2. The period of implementation of the Temporary Social Insurance Regulations (from January 1962 to December 1994)

During this period, the Temporary Charter was amended and supplemented 8 times with 233 guiding documents to respond to the country's situation in each period. Especially in Decree No. 236/HDBT dated September 18, 1985 of the Council of Ministers (now the Government) on amending and supplementing a number of war invalids and social policies when the State makes adjustments. price - salary - money.

Assessing its nature, social insurance in this period still retains the following basic characteristics:

- With a heavy centralized management mechanism and subsidies, the State regulates and directly implements social insurance using an administrative apparatus from the State budget.

- Once employees are on the State payroll, they are naturally guaranteed employment, income and social insurance (there are no workers participating in social insurance in non-state economic sectors).

- Social insurance participants are not expanded, only including employees on the state payroll.

- Social insurance policies and regimes are intertwined and implemented in place of many other social policies such as social incentives, social relief, convalescence, nursing, family planning...

- Implement social insurance managed by many branches; both state management and implementation.

Some problems exist:

- Firstly, the Social Insurance Fund has not been formed on the basis of employees' contributions.

- Second, the management of the social insurance fund is fragmented and lacking in rigor.

- Third, do not separate state management from social insurance policy implementation.

- Fourth, regulations on conditions and benefit levels, especially retirement benefits, lack scientific and practical basis, leading to many unreasonable issues, difficulties and problems in implementation.

2.4.2.3. The period from January 1995 to December 2006

- In 1994, the Social Insurance Regulations were promulgated according to Decree No. 43/CP and 66/CP.

- In 1995, implementing the provisions of the Labor Code on social insurance, the Government issued the Social Insurance Charter accompanied by Decree No. 12/CP dated January 26, 1995 and Decree No. 45/CP dated July 15/ 1995 applies to civil servants, state workers and employees, workers with compulsory social insurance and officers, professional soldiers, non-commissioned officers, soldiers of the people's army and people's police.

- In 1999, Decree No. 93/CP and 94/CP were issued amending and supplementing the 1995 Social Insurance Regulations.

- In 2003, Decree No. 01/CP and 89/CP were issued amending and supplementing the 1995 Social Insurance Charter. The Social Insurance Charter has basically overcome the shortcomings of the previous social insurance policy.

- The Law on Social Insurance was passed and took effect from January 1, 2007 for mandatory social insurance, from January 1, 2008 for voluntary social insurance and from January 1, 2009 for Unemployment Insurance.

2.4.2.4. Period from 2007 to present Period from 2007 to 2013

Implementing the 2006 Social Insurance Law, the Government, the Prime Minister and relevant ministries and branches have issued many legal documents to organize the implementation of the Law and documents guiding its implementation [23, 24, 25, 26, 27, 28]. In general, social insurance measures in this period have created favorable conditions for expanding participants and ensuring social security for people ( issuing insurance policies).

voluntary society for workers working in the informal sector; Unemployment insurance policy for unemployed and unemployed people ).

After 7 years of implementing the Social Insurance Law, the number of people participating in continuous social insurance has increased over the years. By the end of December 31, 2013, the number of people participating in compulsory social insurance was 10.9 million people, an increase of 46.5% over the years. in 2007, an increase of 4.7 times compared to the number of people participating in social insurance in 1995 (including 8.7 million people participating in unemployment insurance, an increase of 44.8% compared to 2009). 2008 was the first year of implementing voluntary social insurance with 6,110 participants. By the end of 2013, there were 173,584 people participating in voluntary social insurance, an increase of 28.4 times compared to 2008.

By the end of December 31, 2013, social insurance revenue reached 115,665 billion VND, an increase of 4.9 times compared to the revenue of 2007, an increase of 146.8 times compared to the revenue of 1995. In particular, social insurance revenue is compulsory. compulsory social insurance is 105,018.1 billion VND, voluntary social insurance collection is 552 billion VND and unemployment insurance collection is 10,095 billion VND. In 2013, health insurance revenue reached 48,565 billion VND, an increase of 3.7 times compared to the revenue of 2009 and an increase of 37.4 times compared to 2002. In 2014, implementing the plan assigned by the Government, Vietnam Social Insurance strives to achieve revenue 193,319 billion VND, of which social insurance revenue is 128,264 billion VND, health insurance revenue is 53,341 billion VND, unemployment insurance revenue is 11,714 billion VND.

Every year, the social insurance industry receives and processes millions of applications for pensions and social insurance benefits. The number of people receiving benefits annually from 1995 to the end of 2013 is over 59.6 million. people, including over 1.6 million people monthly; More than 5.6 million people receive one-time social insurance and over 52 million people receive benefits for sickness, maternity, and health recovery. In addition, Vietnam Social Insurance has focused on completely resolving over 50,000 backlogged applications for social insurance benefits before 1995; Receive documents and process monthly benefits according to Decision No. 613/QD-TTg for over 62,000 people and annually adjust monthly pensions and social insurance benefits for about 2.5 million people. monthly to ensure timeliness and accuracy.

Along with the increase in the number of beneficiaries, the types of social insurance are expanded and the benefit levels in some regimes according to the provisions of the Social Insurance Law are adjusted to increase, thereby leading to an increase in the amount of social insurance payments. If in 2008, the total number

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