Perfecting the apparatus and improving the quality of insurance management staff


On job search responsibilities: Proactively search for jobs and strengthen labor management as a basis for identifying, monitoring and implementing unemployment insurance.

- Completing regulations on the responsibilities of agencies in implementing policies, it is necessary to clearly define: (1) Responsibilities of labor management agencies in labor management, reviewing subjects participating in unemployment insurance and having measures to forecast the number of participants as well as the number of beneficiaries of the policy. (2) Responsibilities of social insurance agencies in reviewing the situation of unemployment insurance contributions of non-state enterprises to ensure correct and sufficient collection; responsibility for closing social insurance books and paying unemployment insurance regimes. (3) Responsibilities of other relevant agencies in propagating and promoting participation in unemployment insurance of enterprises.

- Complete regulations on inspection, examination, and review of the situation of enterprises participating in unemployment insurance and take strong measures to strictly punish acts of late payment and evasion of unemployment insurance payment. Currently, the Government has issued Decree No. 86/2010/ND-CP dated August 13, 2010, stipulating administrative sanctions for violations in the field of compulsory social insurance, including unemployment insurance. This is an important basis for competent agencies to conduct inspections. Competent agencies should soon issue documents guiding the implementation of Decree No. 86/2010/ND-CP dated August 13, 2010 of the Government, effective from October 1, 2010, on sanctions for administrative violations, so it is necessary to increase the penalty level.

- Supplementing instructions on supporting expenses for job referral consultation for the TTGTVL. Currently, there is no document providing detailed instructions on implementing supporting expenses for job referral consultation, so the Social Insurance has not made payment for this amount to the TTGTVL.

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- Supplementing regulations on the age of receiving TCTN, employees who are eligible for retirement are not eligible for TCTN but a portion of the amount contributed to the employee is paid back. Currently, there are still many employees who are eligible for retirement but still receive TCTN first and then receive retirement or receive both regimes at the same time. The reason is that the way to calculate TCTN and the way to calculate retirement are still very different, so employees find ways to circumvent the law to receive TCTN at a higher level than the retirement level and then return to receive retirement. This situation leads to the fund


Perfecting the apparatus and improving the quality of insurance management staff

Unemployment insurance is not implemented in accordance with its purpose of ensuring income for workers when they lose their jobs. This is the most common form of fund abuse today.

- Expanding the subjects participating in unemployment insurance: The Law on Employment, effective from January 1, 2015, has expanded the subjects participating in unemployment insurance. Therefore, it is necessary to complete sub-law documents to implement the expansion of subjects participating in unemployment insurance.

- Regarding the benefit level: It is necessary to change the way of calculating the TCTN benefit level to limit the exploitation of social insurance. For employees who have reached retirement age or are eligible for retirement, a portion of the employee's contribution to the social insurance fund can be deducted at the rate of 10% of the average salary to calculate the pension for each year of social insurance contribution.

With this change, there will no longer be cases where employees have to circumvent the law to receive unemployment benefits when they are eligible for retirement.

It is necessary to change the benefit period to suit the reality to limit the circumvention of regulations to take advantage of unemployment insurance. This will help the labor market become more stable, employees will quit their jobs less and the fund will be better guaranteed.

- Regarding eligibility conditions : It is necessary to clearly distinguish between people who are unemployed for subjective reasons and people who are unemployed for objective reasons. People who lose their jobs due to disciplinary action or because they voluntarily quit their jobs should not be considered unemployed workers. Clearly distinguishing between workers who lose their jobs (unemployed for objective reasons) and people who quit their jobs (unemployed for subjective reasons) is necessary to ensure that the unemployment insurance policy is implemented in accordance with the purpose of social security.

- About the time of receiving TCTN

To facilitate payment management and consistency with other benefits under the social insurance system, the time to receive unemployment benefits is the 1st day of the month following the month of job loss, that is, 1 month after losing a job and not being able to find a new job, the employee will receive unemployment benefits or the date to receive unemployment benefits is the 1st day of the month following the month of submission and completion of application procedures.

- On building a procedure for settlement

It is necessary to develop a reasonable settlement procedure to ensure that the benefits of employees are not troublesome. Research to have one unit carry out both the review, settlement and payment of TCTN.


4.2.2.2 Perfecting social insurance collection management

The biggest problem in the current management of unemployment insurance collection is that the number of participants is increasing, the collection process still has many inappropriate points; the measures to implement unemployment insurance collection are not very effective, there are still loopholes for employers to find ways to avoid paying unemployment insurance for employees. Therefore, the improvement of collection management is to propose specific measures to effectively manage collection. The unemployment insurance collection process must be adjusted appropriately from the registration and implementation stages as well as the management of collected money; comparing and checking the collected amount of each unit and each employee in different areas to minimize the collection management work. The management of unemployment insurance collection must be completed step by step in the direction of organizing the application of information technology in management, building a synchronous database. The Central Social Insurance Agency and local Social Insurance agencies need to improve and synchronously implement professional procedures for collecting unemployment insurance premiums. The professional procedures need to ensure strict management of subjects, clear procedures, and create the most favorable conditions for employers and employees. Accordingly, it is necessary to focus on the following issues:

One is, good labor management.

Labor management is an important basis for identifying and firmly grasping the subjects participating in unemployment insurance and implementing unemployment insurance regimes. Currently, there is no management unit that knows the number of operating enterprises and the number of employees in an enterprise; many enterprises, when established, rent a house to get an address, but whether the enterprise still exists or not, where it has moved, no agency or organization manages it. Therefore, the labor sector needs to build a labor database system and implement labor management measures in the area, manage the number of agencies, units, and enterprises that are actually still operating or only in name but not operating in the area. If we want to effectively expand the subjects participating in unemployment insurance, we must calculate the number of existing labor-using units in the area, the number of units still operating, the number of units temporarily suspended from operation... and the number of employees in each unit. There must be management measures from the time of business registration to dissolution.


The employing unit must have a monthly or quarterly report on the unit's labor situation. Building this database will help build the receivables and manage the total number of employees in the area.

Strengthening the investigation and exploitation of social insurance participants. Currently, only the People's Committees of wards and communes are the places that can best grasp the situation of fluctuations and labor use of units. Labor management agencies and social insurance agencies need to rely on the People's Committees of wards and communes to develop programs and plans for regular coordination to grasp the situation of new establishment, dissolution, transfer, and departure of enterprises, and the number of employees employed by each enterprise. At the same time, there is a plan to grasp the general situation in the entire district through coordination with the Tax Department and the Department of Labor, War Invalids and Social Affairs to be provided with a list of newly established enterprises and the situation of labor registration of enterprises. It is necessary to combine propaganda work with the investigation and exploitation of subjects. It is necessary to refer to the experience of some countries where the Social Insurance Agency has a separate consulting department on social insurance, so it is able to monitor and capture labor subjects very well.

Second, it is necessary to establish appropriate forms of collection.

Social insurance needs to base on the characteristics, nature, and form of operation of each type of unit to come up with an appropriate management form. The most difficult part of managing social insurance collection is managing the participants and the unit's salary fund. Therefore, social insurance must coordinate well with state agencies such as: the agency that grants business licenses, tax agencies, inspection and examination agencies, labor agencies, to monitor the fluctuations and the process of participating in social insurance of the enterprise and its employees.

It is necessary to determine the salary level used as the basis for collecting unemployment insurance premiums, which must be the actual salary that the employer pays to the employee. At the same time, a process for collecting unemployment insurance premiums must be established based on this actual salary level. Only then, when the enterprise makes unemployment insurance contributions based on the total actual salary fund, there will be no more conditions for unemployment insurance fraud. Ultimately, only the actual salary level is the accurate basis for implementing the unemployment insurance contribution regime with the aim of ensuring that all employees in the enterprise participate in and enjoy the unemployment insurance policy, and increasing the unemployment fund to ensure the need for long-term payment of unemployment insurance benefits.


Third, build a database of social insurance participants.

Implementing object management by information technology. In the period of industrialization and modernization of the country, the management of unemployment insurance collection must also be modernized, which is an objective necessity. Developing information technology in the management of unemployment insurance collection, management of unemployment insurance expenditure, management of unemployment insurance participants and beneficiaries... from district to central level to support the exploitation and management of objects collecting unemployment insurance. When the entire system is connected to the network, the exploitation of information for management will be convenient, creating conditions for strict management and limiting the loss of unemployment insurance revenue.

Building a database for labor management as a basis for identifying and capturing information on labor fluctuations in units in the area to have accurate forecasts on the labor situation and have measures to respond to unusual labor fluctuations occurring in units to ensure that the unemployment insurance policy is proactively implemented. One of the ways to forecast the development situation of units as well as participation in unemployment insurance in these units is to conduct surveys. Surveys need to be conducted extensively from the local level (ward, commune) to the provincial level. This work should be assigned to the Department of Planning and Investment in coordination with the Department of Labor - Invalids and Social Affairs. Based on these data, the Department of Planning and Investment will provide the provincial Social Insurance quarterly with the situation of enterprises registered to do business at the Department of Planning and Investment so that this agency can review the subjects and collect unemployment insurance. These figures also forecast the unemployment insurance collection situation for the following years. The provincial Social Insurance will use them as a basis to propose measures to collect unemployment insurance correctly and sufficiently.

It is necessary to build a shared database between the Social Insurance and the Employment Service Center. The Employment Service Center connects to the database on unemployment insurance collection of employees. When employees register for unemployment benefits, the Employment Service Center can immediately check the employee's personal information, contribution level, and payment period. Doing so will ensure that there is no wrong time closing. If the Employment Service Center has agreed to resolve benefits for the employee, it only needs to mark the unemployment benefits in the database. This will help shorten the time to resolve benefits and ensure database consistency between the two parties.


Fourth, promote the coordination of relevant sectors in detecting sources of social insurance revenue.

For the Department of Labor - Invalids and Social Affairs: Focus on surveying the implementation of labor and unemployment insurance policies, and at the same time develop a form of information exchange with the Social Insurance to ensure a firm grasp of revenue sources and the implementation of labor and unemployment insurance policies in units.

For the Planning and Investment sector: Continue to exchange information to grasp the situation of changes in units in the area, and confirm the implementation of social insurance policies of units.

For the Management Board of Industrial Parks and Export Processing Zones: Coordinate the inspection of the implementation of unemployment insurance policies and coordinate the dissemination of unemployment insurance laws to social insurance and unemployment insurance workers in units operating in industrial parks and export processing zones.

For local authorities and organizations: Connecting with the People's Committees of districts, wards and communes helps the Social Insurance agency to promptly grasp the fluctuations of business types in the area.

Close coordination with relevant State management agencies and local authorities helps the Social Insurance agency grasp revenue sources and create conditions to support State management agencies to better perform State management tasks in the locality.

4.2.2.3 Perfecting the management of social insurance expenditure

The management of social insurance expenditure plays an important role, directly affecting the social insurance fund, while ensuring fairness and objectivity for policy beneficiaries. Therefore, in the coming time, it is necessary to focus on improving the management of expenditure. Accordingly, it is necessary to focus on the following issues:

Firstly, strengthen coordination among sectors to develop standard procedures for implementing social insurance regime payments.

The current situation of expenditure management shows that there is a lack of coordination between sectors in expenditure management, so it is necessary to strengthen coordination between sectors in expenditure management. Clearly define the responsibilities of social insurance, vocational training centers, and vocational training establishments.

Second, build and connect software between TCTN expenditure and BHTN collection.


Build and connect software between the Social Insurance Department and the Social Insurance Department to promptly detect cases that have re-submitted to Social Insurance but are still receiving Social Insurance. Build a shared database between the Social Insurance Department and the Labor Market Information Center on the personal information, participation process, and the process of affecting Social Insurance of employees to reduce the need to provide personal information repeatedly at the Social Insurance Department and the labor sector.

Third, diversify payment forms to create favorable conditions for employees.

In order to make the payment and management of unemployment insurance payments convenient and quick, it is necessary to diversify payment methods such as payment through personal accounts at banks and credit institutions where the beneficiaries of unemployment insurance are residing. This form has been implemented and brought very good results. However, this form is also facing certain obstacles such as, unlike other countries in the world, the proportion of participants and beneficiaries of unemployment insurance in Vietnam who do not have personal accounts is still high, especially in rural and mountainous areas. To help employees overcome this difficulty, the Social Insurance Agency needs to coordinate with banking and credit institutions to guide employees participating and receiving unemployment insurance to open personal accounts at banks and credit institutions. This form of payment is being applied by many countries, especially in countries with high participation and benefit levels of social insurance such as the US, Germany, UK, France... Implementing this form not only helps employees reduce financial and time costs but also significantly reduces the amount of cash in circulation, while increasing the efficiency of State management in managing social insurance payments.

Fourth, strengthen inspection and control of spending activities, ensure cash safety...

It is necessary to ensure cash safety, ensure that money is delivered to beneficiaries according to policy, at the right time, quickly and conveniently. Promote the implementation of TCTN payment to create conditions for employees not to have to travel many times to receive TCTN.

Fifth, enhance the responsibility of organizations and individuals in implementing social insurance payment work.

This is an important issue in limiting the collusion between state officials, businesses and employees to take advantage of unemployment insurance. There needs to be strong enough sanctions to limit it, while at the same time enhancing the responsibility of organizations and individuals in implementing unemployment insurance payments.


4.2.2.4 Perfecting the apparatus and improving the quality of social insurance management staff

Social insurance activities, like any other activities, require a team of staff (organizational apparatus) based on their authority and duties to carry out activities within the assigned scope. Along with the development of society, any organizational apparatus in any field must always be improved to meet that development. The State management apparatus for social insurance is no exception, this is an important content in State management for social insurance activities. This becomes even more important when management work today is associated with information technology. Therefore, it is required that the State management apparatus for social insurance not only needs to be improved but must be improved in the direction of professionalization, specialization associated with modern management technology - management by information technology. Accordingly, it is necessary to focus on the following issues:

Firstly, clearly define the functions and tasks of State management of social insurance of relevant ministries and branches.

Strengthen coordination between state management agencies such as inspection, finance, labor, social insurance, investment planning in directing, inspecting and implementing unemployment insurance policies for employees in enterprises. Develop coordination regulations between the Department of Labor - Invalids and Social Affairs and the provincial Social Insurance, the provincial Labor Federation and relevant agencies and organizations to coordinate and clarify responsibilities in disseminating, guiding, inspecting and handling violations according to unified procedures in implementing unemployment insurance policies. Create consistency from local Party committees and authorities; unify coordination mechanisms for each sector and each level in all areas related to employees and unemployment insurance in units, especially private enterprises. Strengthen information work between functional sectors and social insurance and vice versa.

Second, continue to perfect the social insurance apparatus to meet the requirements of implementing social insurance; the organization level of the social insurance enforcement apparatus must be suitable for each locality .

Establish a vertical system from central to local levels on employment services to effectively implement policies and regulations on job counseling and support, because this is the most sustainable way to solve unemployment.

Research and consider building a standard operating model for employment service centers to effectively perform the center's tasks on unemployment insurance, consulting, labor market information, job referral, labor supply and vocational training.

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