To enhance thematic communication on lump-sum social insurance in Vietnam

To enhance thematic communication on lump-sum social insurance in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows: 

On May 22, 2024, the Vietnam Social Security issued Official Dispatch 1488/BHXH-TT to enhance thematic communication on lump-sum social insurance in Vietnam.

To enhance thematic communication on lump-sum social insurance in Vietnam

To continue creating consensus and unity in the organization and implementation of social insurance policies, ensuring long-term and sustainable social welfare for employees, the Vietnam Social Security requests its affiliated units, as well as the provincial and centrally governed Social Insurance agencies (hereafter referred to as provincial Social Insurance agencies), to carry out thematic communication on lump-sum social insurance. The subjects, content, and forms of communication are as follows

(1) For CPV committees and authorities at all levels:

Provincial Social Insurance agencies should proactively communicate with party committees and authorities at all levels about their roles and responsibilities in implementing local social insurance policies. This will reaffirm that communicating social insurance policies is not solely the responsibility of the social insurance sector but a common responsibility of society as a whole, aiming for long-term and sustainable social welfare for individuals. To be specific:

* Content of communication:

- Communicate the roles and responsibilities of party committees and authorities in leadership and direction to minimize the number of individuals opting for lump-sum social insurance. The departure of employees from the social insurance system not only directly affects their rights and benefits but also impacts the stability of people's lives and the long-term and sustainable social welfare goals within the region.

- Highlight the significance, value, and benefits of social insurance policies as a primary pillar in the social welfare system.

- Provide comprehensive information and communication about the current situation of lump-sum social insurance at the local level, including reasons why employees choose lump-sum social insurance. Share information about the results and solutions of communication efforts by the Vietnam Social Security and provincial Social Insurance agencies to reduce the instances of lump-sum social insurance.

* Forms of communication:

- Provincial Social Insurance agencies shall regularly report and advise local party committees and authorities, as well as relevant departments, organizations, and socio-political entities, to actively and cooperatively implement effective and suitable communication activities; especially, entities directly involved, such as the Department of Labor, Invalids and Social Affairs, Provincial Labor Unions, Industrial Park Management Boards, Export Processing Zone Management Boards, and others within the region.

- Provincial Social Insurance agencies shall collaborate with the Provincial CPV Committee's Propaganda Department and the City CPV Committee's Propaganda Department to provide information and guidance on social insurance communication, including lump-sum social insurance policies, to provincial-level, district-level, and local-level reporters and media agencies through monthly reporter conferences, news systems, and articles published in the propaganda department's publications.

(2) For employers:

When the number of employees opting for lump-sum social insurance increases, it directly affects production and business activities and the stability of the workforce. Therefore, provincial Social Insurance agencies need to focus on communication, specifically:

* Content of communication:

- Provide comprehensive information about the current situation of lump-sum social insurance withdrawals at the local level and the main reasons why employees decide to withdraw their social insurance benefits in one lump sum. Share the solutions implemented by the Social Insurance agencies in informing and communicating with employees to reduce instances of lump-sum social insurance withdrawals so that employers will acknowledge and share the responsibility and actively communicate with employees.

- Communicate the responsibilities and obligations of businesses in participating fully in social insurance for employees, ensuring employees' peace of mind in their work, and fostering long-term attachment to the company. This contributes in increasing productivity, improving work quality, and increasing efficiency, enabling companies to develop sustainably. Ensuring employees remain within the social welfare system is not only their right but also a solution to foster long-term loyalty to the company, helping companies proactively manage their workforce.

- Communicate the potential impacts when employees collectively leave their jobs to withdraw lump-sum social insurance, such as the risk of labor shortages, the waste of skilled labor resources, and the impact on production and business activities. Recommend that employers proactively find solutions and coordinate communication efforts to stop the situation where employees leave their jobs to withdraw lump-sum social insurance benefits.

- Communicate with employers so that they have policies to retain employees for long-term employment, effectively utilizing the company's human resources while taking care of employees' material and mental well-being.

* Forms of communication:

Provincial Social Insurance agencies should actively and promptly implement various flexible forms of communication, including:

- Organizing conferences to provide information and engage in direct dialogue with employers.

- Providing information through Zalo, email, or other means to businesses and employers.

- Creating communication materials (audio files, articles, videos, infographics, etc.) to broadcast through speaker systems, publish on websites, and include in the newsletters of companies and employers.

- Other suitable forms of communication that ensure effectiveness and relevance to the local situation.

(3) For employees

This is the direct subject that needs regular and continuous communication in order to change employees' perceptions and make them aware of the benefits of receiving monthly pensions and the disadvantages of choosing a lump-sum social insurance payment. Therefore, it is suggested that the social insurance agencies in each province proactively and actively implement the following communication contents and methods:

* Content of communication:

- Extensive communication about the meaning and value of receiving monthly pensions to ensure a stable life and a free health insurance card (HI card) during the pension period for healthcare:

+ Participating in social insurance guarantees a monthly pension for a stable life and provides a free HI card for healthcare. This is the humanistic nature of the policy. The period of paying social insurance premiums is the result of the labor process, the accumulation of employees when they are healthy and have income to save for their lives and health in old age.

+ Having a pension means having a stable monthly income that ensures a comfortable life in old age and helps employees become more self-reliant in their own lives, without relying on family and society.

+ The pension is regularly adjusted by the State based on the consumer price index and the economic growth rate. Therefore, pension recipients are always protected from the devaluation of the currency.

+ Free HI card is provided (with 95% coverage of medical expenses) during the pension period to take care of health in case of illness or disease.

+ When an employee passes away, the person in charge of burial arrangements will receive a burial allowance (equivalent to 10 months of basic salary at the time of death), and the employee's family will receive a lump-sum funeral allowance or a monthly funeral allowance if they meet the specified conditions.

- Communication about the disadvantages of choosing a lump-sum social insurance payment; the benefits and value of not receiving a lump-sum payment, and preserving the period of contributions to continue participating when conditions allow:

+ When receiving a lump-sum social insurance payment, employees may miss the opportunity to receive a pension and have no material conditions to ensure a stable life in old age; the opportunity to receive a free HI card for healthcare in old age; and the funeral regime (such as funeral expenses, a lump-sum funeral allowance, or a monthly funeral allowance).

+ Employees who receive a lump-sum social insurance payment will have a significant disadvantage: they will lose about 1.14 months' salary for each year of social insurance contributions before 2014 and about 0.64 months' salary for each year of contributions after 2014 when compared to accumulating the time to receive a pension. Therefore, the disadvantage is significant (details in Appendix I attached).

+ Once an employee has received a lump-sum social insurance payment, if they choose to participate in social insurance again, they will not be able to count the previous period of contributions, which may result in the employee not meeting the required contribution period to receive a pension at the end of their working age or, even if they meet the conditions, the pension amount may not be high. Therefore, it is necessary to communicate to employees to preserve the contribution period, and when conditions allow, they should continue to participate in mandatory social insurance or voluntary social insurance to accumulate the previous contribution period and receive a higher pension (social insurance operates on a pay-as-you-go system, and the more years of contribution, the higher the pension amount).

- Communicate the results of persuading employees not to choose a lump-sum social insurance payment at the local level, especially after communication efforts have been made. Employees should recognize the value and benefits of staying within the system and not choosing a lump-sum social insurance payment. Real-life examples of "real people, real work" should be highlighted, such as retirees who are living happily, healthy, and at ease thanks to their monthly pensions and HI cards. Examples can also include individuals who have previously received a lump-sum social insurance payment and now wish to repay the amount to receive a monthly pension, or those who have received a lump-sum payment and now have to participate in voluntary social insurance to meet the requirements for retirement benefits (paying social insurance premiums once for the missing years), etc.

- Regular and persistent communication should be conducted to convey the message to employees that, regardless of the direction of social insurance policies and regulations, the main goal is to ensure long-term and sustainable social security rights and benefits for employees.

* Forms of Communication

- Social insurance agencies in each province should proactively and actively implement various communication channels, such as:

+ Organizing communication conferences, dialogues, and direct consultations with employees at enterprises and industrial parks. Communication and consultation can be conducted during break times, shift changes, and through the distribution of flyers and brochures. Agencies should actively address inquiries, provide advice and support, and record feedback, suggestions, concerns, and desires of employees.

+ Maintaining regular communication and direct engagement at the "Single-window" service section of provincial/district social insurance agencies when individuals come to process their lump-sum social insurance payment. This can be achieved through counseling and persuading employees to change their decision of receiving a lump-sum payment. Flyers, brochures, and informational materials highlighting the benefits of receiving a monthly pension and the disadvantages of a lump-sum payment should be attached to the application files when employees come to register for the lump-sum social insurance payment. The customer care hotline system of the relevant agency should also be utilized.

+ Coordinating direct communication for employees at the Provincial Employment Service Centers and integrating communication efforts at the labor user units during nationwide social insurance campaigns, Workers' Month, and Occupational Safety and Health Action Month. This can include distributing communication materials (flyers, brochures) to employees and displaying motion graphics and video clips on LED screens at the Employment Service Centers and industrial parks, if available.

+ Increasing the quantity and frequency of in-depth articles, interviews, panel discussions, news clips, infographics, etc., on the media channels of press agencies, newspapers, the social insurance sector, the internet, and social media platforms.

+ Utilizing public address systems at local facilities and organizing communication campaigns, advisory booths, etc.

+ Including flyers and brochures highlighting the disadvantages of receiving a lump-sum social insurance payment in the final settlement files for employees leaving their jobs to provide information and communication in advance.

- Vietnam Social Security implements the following communication methods:

+ Continuing to provide information through Section 2.3.1, Item 2 of Official Dispatch1488/BHXH-TT in the "News" section of the "VssID - BHXH số" application to reach employees.

+ Sending text messages (through the notification function) on the "VssID - BHXH số" application (VssID) to employees who have been participating in social insurance for more than 10 years. The content should express gratitude to employees for their participation in social insurance and communicate the benefits of participating, such as having a monthly pension in old age, receiving a free HI card, and lifelong healthcare support.

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE