Regulations of Vietnamese Law on Voluntary Social Insurance

Insurance payments are made through the counters of the Cooperatives, or through the cooperative secretary or village chiefs.

2.1.2.4. China's voluntary social insurance

In addition to implementing the compulsory social insurance system, in recent years China has implemented a voluntary social insurance system through two programs: the supplementary pension insurance program and social insurance for farmers.

* Supplementary pension program: Implemented by the Chinese government since 1991. It is a form of voluntary insurance supplemented in the compulsory social insurance system to ensure that beneficiaries have a higher level of benefits when they retire.

In 1995, the Ministry of Labor and Social Insurance of China issued a document guiding the implementation of the supplementary pension program, which clearly stipulates the procedures and conditions for enterprises to participate in the fund. Accordingly, the supplementary pension program is based on the following basic principles:

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+ Must have personal account;

+ Fund management according to market economy orientation;

+ The contribution level is completely voluntary according to the agreement between the employer and the enterprise's trade union organization.

The Government organizes the implementation of the supplementary pension program and has policies to encourage businesses and employees to participate. Based on the general national policy, each locality has also developed its own program suitable to its socio-economic characteristics, for example:

Beijing supplementary pension program:

Based on the national general regulations, Beijing has built and implemented a supplementary pension fund since 1991.

- Participants: Those who have participated in the compulsory pension program, including workers in urban areas working in state-owned enterprises, foreign joint ventures, cooperatives, self-employed workers, rural workers migrating to urban areas, etc.

- Closing and benefit mechanism:

+ There is no regulation on the contribution level or contribution rate, the contribution level is voluntary, depending on the economic conditions or welfare of the enterprise. The form of participation in the supplementary fund is also quite diverse, most enterprises participate in the common fund implemented by the social insurance agency, some enterprises build their own supplementary pension fund, some enterprises do it through purchasing commercial insurance for employees.

+ The level of benefits for employees upon retirement is based on the contribution level expressed in the amount of money in the account contributed by the enterprise and the employee. The form of benefit is also quite flexible, employees can receive it once or monthly, depending on the employee's request.

Beijing has a policy of encouraging businesses to participate in supplementary pension programs for employees through tax exemptions (reducing the annual tax rate).

* Rural voluntary insurance program:

Social insurance for farmers in China was implemented on a pilot basis in 1989 and by 1992 had been implemented in nearly 200 localities. Here are some characteristics of the voluntary rural social insurance program in Nanjing:

Nanjing has implemented a voluntary rural social insurance program (Nongbao) since 1992. The Nongbao program is a personal savings program, with participants being workers in cooperatives in industrial and agricultural zones.

The contribution level or contribution rate of this program is chosen by the workers themselves. Rural cooperatives in Nanjing also encourage workers to join the fund and contribute at the corresponding level of the cooperative.

Contribution method: Employee contributions are voluntary, without age restrictions, can be paid multiple times or can be paid in one go, depending on the employee's economic conditions.

Level and method of benefit: Employees receive benefits at age 60 for men and age 55 for women. The monthly benefit is determined by dividing the total amount of contributions from the cooperative and the employee in the personal account by 216 months (18 years). Employees can also receive the entire amount in the account at once if the monthly benefit is too low.

During the fund closing process, employees can get their contributions back in cases such as: having to move to another province or having a legitimate reason, but can only get back the amount they contributed and the cooperative's part cannot be returned.

Nanjing implements an incentive policy through personal account interest rates that are higher than savings interest rates. Employees only have to deduct a 3% management fee in the first year of fund contribution, and no other fees are deducted from the second year. In case of a lack of management fees, they will be supplemented from the local budget.

The provincial agricultural protection program management apparatus is divided into 4 levels, with the following functions and tasks:

Provincial level: Responsible for developing programs, promulgating common local mechanisms and policies.

District level: Responsible for specifying mechanisms and policies issued by the province.

Grassroots level (town): Implement registration to participate in the Agricultural Protection Fund for cooperatives and workers.

Village level: Collecting contributions from cooperatives and workers.

There is a very close relationship between levels and there is regular exchange and contact with each other in work. Thanks to that, it has contributed to promoting the synchronous operation of the program.

The implementation of voluntary social insurance for farmers in China shows that farmers with the participation of cooperatives have had a certain guarantee in life, while the majority of Chinese farmers have low and unstable incomes. However, the implementation of social insurance for farmers is an important policy of China, contributing to limiting population growth, especially changing the traditional concept of the elderly living on their sons in China.

2.1.2.5. Voluntary social insurance in Türkiye

Voluntary social insurance in Türkiye is divided into two unified subsystems: voluntary social insurance for self-employed workers and voluntary social insurance for self-employed farmers.

Subjects of voluntary social insurance for self-employed workers include: independent workers without labor relations; unemployed spouses of workers in the agricultural sector; housewives; people of Turkish origin with foreign nationality who are dependent on others and do not have stable jobs.

Subjects of voluntary social insurance for self-employed farmers, including self-employed workers who are not subject to compulsory social insurance.

The applicable insurance regimes include: disability insurance, old age insurance and death benefit (death benefit only applies to self-employed workers, not farmers).

The conditions for receiving disability benefits are a reduction of 2/3 of working capacity and a minimum of 5 years of insurance contributions. For old-age insurance, the retirement age for men is 55 and for women is 50 and the minimum period of voluntary social insurance contributions is 25 years. Those who have contributed from 15 years to less than 25 years are entitled to partial old-age insurance (called early retirement, receiving a lower monthly allowance than those who are eligible). For those who have paid insurance for less than 15 years, they are entitled to a one-time pension.

Financially, the social insurance agency sets out 12 contribution levels (similar to China's 10 levels), so that insurance participants can choose to pay according to one of those 12 levels.

The old-age insurance benefit level (minimum level) is applied similarly to the old-age benefits of other insurance systems (in Türkiye there are different social insurance systems for different groups of beneficiaries).

Some lessons learned from the experience of implementing voluntary social insurance in some countries around the world :

Through studying the implementation of voluntary social insurance in countries around the world, we can draw some useful conclusions for Vietnam in the process of building a voluntary social insurance policy:

- First, about the necessity

No country has simultaneously issued a single social insurance policy to apply to all workers. The birth,

Developing and gradually expanding the subjects participating in social insurance must be suitable to the socio-economic conditions of each period. It can be said that voluntary insurance is a transitional form of compulsory social insurance that every country must implement under certain conditions with certain groups of subjects to ensure that all people can participate in social insurance. Therefore. In the conditions of a multi-component economy in our country with different incomes, labor relations, and contribution capabilities, the issuance of many forms of social insurance according to the characteristics of each type of labor subject is in line with international experience.

- Second, about the participants

Many countries in the world have implemented voluntary social insurance, the subjects participating in this type of insurance are farmers, agricultural workers and independent workers, those who have not participated in compulsory insurance. Some countries also allow those who have participated in compulsory social insurance to participate in voluntary insurance to increase the possibility of safety in life. As mentioned above, expanding the subjects participating in voluntary social insurance must be done carefully and gradually. It is necessary to forecast the number of participants (including potential subjects, feasible subjects and possible risks) to adjust policies accordingly.

- Third, about insurance policies

Depending on the socio-economic conditions of each country, one or several insurance schemes can be implemented. The schemes implemented by most countries in order of priority are old age insurance (retirement), death benefits, and disability insurance. A few countries also implement sickness and maternity insurance. The expansion of insurance schemes must also be carried out carefully and gradually.

- Fourth, about insurance finance

Due to the characteristics of the groups of subjects participating in voluntary social insurance, most of whom have unstable incomes, especially agricultural and rural workers whose incomes are often linked to the seasons, countries are very flexible in terms of contribution levels and forms of insurance contributions. The contribution levels are often applied at a uniform level, depending on the conditions of each place, linked to the general living standards of the population and adjusted periodically. Some countries have regulations on many different contribution levels so that participants can choose, in accordance with their income conditions.

Because it is voluntary insurance, the contributions are mainly paid by the insured, but in some countries, especially in developed countries, the state or cooperatives also support the insurance fund. This is very important to maintain the operation of the insurance system with the goal of general social security.

Contributions can be made monthly, quarterly or every 6 months depending on local conditions.

The level of insurance benefits is usually not linked to income and is based on the contribution level and the fund's ability to pay, but is not lower than the minimum living standard of the population. To be eligible for old-age insurance, age is the basis for consideration. The retirement age of voluntary insurance in countries is similar to that of compulsory insurance or slightly lower, but not higher.

Insurance payment is very flexible and can be made through personal accounts, through the postal system or through cooperative representatives, village representatives, etc.

Voluntary social insurance funds are usually managed separately, on a self-management basis and protected by the state.

Although implemented separately, countries can implement "interconnection" between voluntary and compulsory insurance to ensure rights.

continuous coverage for insured persons when moving around the labor market. However, at first voluntary insurance was often carried out separately, so it was possible for a person to participate in both insurance systems at the same time.

2.2. PROVISIONS OF VIETNAMESE LAW ON VOLUNTARY SOCIAL INSURANCE

2.2.1. Before the Labor Code (1986-1994)

In the Vietnamese legal system, documents have been initially issued to specify legal regulations on voluntary social insurance, specifically:

During the period of centralized management and subsidy corresponding to the State economic sector, the social insurance regime had almost only one form: compulsory social insurance, applied to State officials, workers and civil servants. During this period, there was no form of voluntary social insurance, both in law and in practice.

Next, in 1989, implementing Resolution No. 16/ND-TW dated July 15, 1988 of the Central Committee, Directive No. 234 dated August 18, 1988 and Decree No. 146/HDBT dated September 24, 1988 of the Council of Ministers (now the Government) on policies for the non-state economic sector, the Ministry of Labor, War Invalids and Social Affairs developed and submitted to the Council of Ministers a draft charter on social insurance for workers working in non-state economic sectors. The Council of Ministers agreed to pilot the project in 5 provinces: Hanoi, Hai Phong, Ho Chi Minh City, Thai Binh and Hoang Lien Son (Document No. 2251/PPLT dated November 29, 1989 of the Office of the Council of Ministers). The Ministry of Labor, War Invalids and Social Affairs is the agency implementing this project.

2.2.2. Since the Labor Code (since 1994) until now