The draft Law amending and supplementing a number of provisions of the Law on Social Insurance proposes expanding the scope of participants and gradually bringing new groups of workers into the social insurance system. It also proposes expanding the investment options for the Social Insurance Fund, together with requirements to ensure safety and improve the efficiency of resource utilization.
The National Assembly Standing Committee gives its opinion on the draft Law amending and supplementing a number of provisions of the Law on Social Insurance. Photo: Office of the National Assembly.
Gradually Expanding Coverage to New Groups of Workers
On the morning of September 23, as part of the ongoing 6th session, the National Assembly Standing Committee gave its opinion on the draft Law amending and supplementing a number of provisions of the Law on Social Insurance.
Presenting the Government's submission on the draft Law, Minister of Home Affairs Nguyen Tien Hai said that the draft Law amends and supplements provisions related to the restructuring of the two-tier local government apparatus; removes requirements concerning social insurance records and administrative procedures; revises the authority and names of ministries and sectors; and amends certain provisions on social insurance benefits, policies, and investment activities of the Social Insurance Fund.
Regarding amendments and supplements related to the restructuring of the two-tier local government apparatus, the Minister said the draft Law revises provisions concerning non-professional workers participating in compulsory social insurance.
Regarding the Social Insurance Fund Management Council, following the restructuring of the organizational apparatus, the positions and roles of the social insurance agency and the Ministry of Finance have changed, affecting the operations of the Social Insurance Fund Management Council. The draft Law therefore revises the ministries and sectors participating in the Council.
The draft Law also amends and supplements the authority to determine the number of days of convalescence and health recovery leave following illness and maternity leave for employers that do not establish grassroots-level trade unions. These entities include state administrative agencies and the armed forces.
In addition, the draft Law revises the procedures and authority for settling complaints against administrative decisions and acts related to social insurance, following the restructuring of the social insurance agency. It also amends provisions to clarify the responsibilities of provincial-level and commune-level People's Committees in state management of social insurance.
Regarding amendments and supplements to social insurance benefits and policies, Minister Nguyen Tien Hai said the draft Law revises and supplements several provisions to ensure consistency throughout the Law on Social Insurance and provide a legal basis for relevant agencies during implementation.
Accordingly, the draft Law proposes that individuals receiving monthly social retirement allowances will not be subject to compulsory or voluntary social insurance participation.
To establish an appropriate and feasible roadmap for expanding social insurance coverage among people working without employment relationships and workers on digital platforms, the draft Law proposes amending and supplementing provisions in the following direction: “The National Assembly Standing Committee shall decide on compulsory social insurance participation for people working without employment relationships and workers on digital platforms based on a proposal from the Government. On this basis, the Government will continue to direct comprehensive research and assessment during the formulation of a new resolution on wage and social insurance policies for submission to the competent authorities for consideration and decision.”
Regarding the concept of pension insurance, the draft Law supplements provisions to allow individuals to participate directly on a voluntary basis if they wish to do so. The draft Law also amends provisions on authorizing other persons to carry out social insurance procedures, removing the maximum 12-month validity period for such authorization. It only stipulates that pensions and social insurance benefits shall be paid through the beneficiary's account and assigns the Government to provide detailed regulations.
The draft Law also adds a provision authorizing the Government to prescribe in detail the contribution period for voluntary social insurance used to calculate maternity benefits and the funding source for providing such benefits.
Expanding Fund Investments Alongside Safety and Sustainability Requirements
Minister Nguyen Tien Hai also provided information on amendments and improvements aimed at unlocking resources and enhancing the efficiency of Social Insurance Fund investments. According to the Minister, following the conclusions of the National Assembly Standing Committee, the Government directed relevant ministries and agencies to update and supplement the review and assessment of the results of Social Insurance Fund investments.
On this basis, the Government proposes amendments under which deposits may be placed with the following banks: state-owned commercial banks; joint-stock commercial banks in which the State holds more than 50% of charter capital; joint-stock commercial banks in which the State and state-owned enterprises hold more than 50% of charter capital; and joint-stock commercial banks in which state-owned enterprises hold more than 50% of charter capital, provided that such banks have good quality and a high level of safety as assessed by the state management authority responsible for banking activities. Social Insurance Fund investments would not be made in commercial banks under special control.
The Government believes this option would ensure a higher level of safety compared with the option previously submitted to the National Assembly. At the same time, it would broaden the investment portfolio compared with the 2024 Law on Social Insurance, in line with the orientations set out in Resolution No. 28-NQ/TW and Conclusion No. 18-KL/TW of the 14th Party Central Committee.
In its preliminary appraisal of the draft Law, Chairman of the National Assembly's Committee on Culture and Society Nguyen Dac Vinh said that the Standing Committee of the Committee agreed on the necessity and scope of the amendments and supplements proposed by the Government. The draft Law dossier was also deemed complete in accordance with regulations.
Regarding social insurance participants, the Standing Committee of the Committee basically agreed in principle with the Government's proposal to gradually expand the scope of participation, ensure social security rights, and implement the objectives set out in Resolution No. 28-NQ/TW.
Minister of Home Affairs Nguyen Tien Hai presents the Government's submission on the draft Law. Photo: Office of the National Assembly.
The Standing Committee of the Committee also basically agreed in principle with expanding the Social Insurance Fund's investment portfolio, while emphasizing the importance of safety requirements. It also requested clarification of the proposed expansion of participants, as well as mechanisms for controlling the management and use of the fund and the responsibilities of state management agencies, organizations, and relevant individuals.
Concluding the session, National Assembly Vice Chairwoman Nguyen Thi Thanh said that the National Assembly Standing Committee basically agreed on the necessity of amending and supplementing the Law and requested that the Government continue reviewing and completing provisions on expanding compulsory social insurance coverage. This includes clearly identifying eligible groups, criteria, legal and practical bases, and implementation feasibility, while ensuring consistency with labor, employment, and other relevant legislation.
Regarding supplementary pension insurance, the National Assembly Standing Committee requested a comprehensive assessment of its impacts, clarification of mechanisms for managing and using the fund, the responsibilities of state management agencies, mechanisms for protecting participants, and measures to prevent its misuse for capital mobilization.
Regarding Social Insurance Fund investments, the Vice Chairwoman emphasized that the National Assembly Standing Committee agreed with expanding the fund's investment portfolio in line with the spirit of Resolution No. 28-NQ/TW, while stressing that the principles of safety, efficiency, and sustainability must be maintained not only in the short term but also over the long term.
The drafting agency was requested to coordinate with ministries, sectors, and the Fund Management Council to continue reviewing and revising the draft in a manner that establishes fundamental principles in the Law while authorizing the Government to prescribe specific conditions and criteria and clearly define eligible investments and investment categories. State management agencies would be responsible for assessing, selecting, and supervising investments, ensuring transparency, establishing risk-control mechanisms, and clearly defining the responsibilities of relevant organizations and individuals to safeguard the safety, preservation, sustainability, and efficiency of the fund.
In particular, the Vice Chairwoman requested that the draft clearly identify the ministry, sector, or focal agency primarily responsible for each area. At the same time, the conditions for implementation under the two-tier local government model should continue to be reviewed. Digital transformation should be accelerated while maintaining simple and accessible in-person procedures for people who do not have access to smart devices or have limited technical capabilities. Management should also be strengthened to prevent improper or unauthorized payments.