Expanding the safety net

As soon as the Law on Social Insurance came into effect (July 1), Mr. Phu Chi Binh (Buon Ma Thuot ward) went to the area for guidance, consultation and answers to social insurance and health insurance policies at the Provincial Public Administration Service Center to learn about the process and procedures for participating in compulsory social insurance for business households. Mr. Binh shared: “Previously, I thought that social insurance was only for officials, civil servants, and employees working in agencies and enterprises. Now, the policy of participating in compulsory social insurance has been extended to business owners. Knowing that from now on, I have to save an additional amount each month to pay social insurance, but I am very willing, because this is the right policy. Moreover, thinking about having a pension and health insurance in the future will also help with life because no one knows whether the business or income can be stable forever.”

Ms. Nguyen Thi Thuong, owner of a women's hair salon in Quang Phu commune, has participated in voluntary social insurance for more than 2 months. According to her, participating in social insurance is a reasonable investment for young workers like her. Currently, she is waiting for instructions from the local social insurance agency to be able to switch from voluntary social insurance to compulsory social insurance.

Provincial Social Insurance officers guide business households on the process of participating in compulsory social insurance.

Business owners are a large group. They are not only small traders in the market, restaurant owners, traditional craftsmen... but also those who create jobs and contribute to the budget through taxes and fees. Therefore, expanding compulsory social insurance to this group is a necessary and right step. No one can be healthy forever to work all their lives; no one knows if business and trade will always be favorable and long-lasting, and it is impossible to predict when illness, disease, accidents... will happen. Therefore, the social insurance contribution will be a support for when risks arise or when old age makes it difficult to work.

According to the new regulations, registered sole proprietorships (with or without employees) must participate in compulsory social insurance. The monthly contribution is 25% of the salary; of which 22% is paid to the pension and death fund and the remaining 3% is paid to the sickness and maternity fund. The sole proprietorship owner can choose the salary level as the basis for compulsory social insurance contribution, but the lowest is equal to the reference level and the highest is 20 times the reference level at the time of payment; at the same time, they can choose to pay monthly, every 3 months or every 6 months depending on their needs. Thus, with the current reference level of 2,340,000 VND, the lowest contribution level that a sole proprietorship owner can participate in is 585,000 VND/month, the highest contribution level is 11,700,000 VND/month.

According to Director of Quang Phu Social Insurance Phan Huu Toan, business household owners are a group with a very large number and a lot of potential. Therefore, as soon as the Social Insurance Law 2024 took effect, the Social Insurance at the grassroots level proactively coordinated with tax authorities and local authorities to review households with business registration, and at the same time propagated policies so that people understand the long-term significance of participating in social insurance.

Ms. Nguyen Thi Thuong, Quang Phu commune (right) learns about compulsory social insurance policy.

Expanding the scope of participation will help increase the number of people contributing to the social insurance fund, thereby increasing revenue and ensuring the sustainability of the fund in the long term. This is very important to ensure full and timely payment of benefits to employees in the future. Moreover, this policy is also an effective way to raise public awareness of the role and benefits of social insurance. When business owners participate in compulsory social insurance, they are not only guaranteed benefits such as retirement, health insurance, unemployment insurance, etc., but also become the ones who inspire and encourage other informal labor groups to participate in voluntary social insurance, gradually moving towards the goal of universal coverage.

It can be said that expanding compulsory social insurance to business households is a step in the right direction towards universal social insurance. For this policy to truly come into effect, in addition to the determination of the authorities, it requires the participation of mass organizations, local authorities and especially the initiative of business households who are directly in charge of their livelihoods.

Source: https://baodaklak.vn/xa-hoi/202508/mo-rong-luoi-an-sinh-9fb1a43/