Social insurance workers provide information on the policies to people. (Photo: VNA)

Hanoi - The capital city of Hanoi’s labour market has seen positive developments after the Tet (Lunar New Year) holiday, presenting a ‘golden opportunity’ for the sustainable development and expansion of the social insurance system.

Statistics from the Hanoi Department of Labour, Invalids and Social Affairs (DoLISA) revealed that only 31 companies in the city had to cut working hours or terminate contracts with their employees, which total more than 13,000.

The department said that this was only a fraction compared to figures in other key labour markets.

Meanwhile, last year also saw approximately 203,000 people finding new employment, an increase of 13 per cent compared to 2021.

The growth in the labour market also translated to a rise in the number of people signing up for social insurance.

Phan Van Men, Director of Hanoi Social Insurance, told Ha Noi Moi (New Ha Noi) newspaper: “There are 104,236 businesses of nearly two million people participating in social insurance, an increase of 9,613 businesses and nearly 48,000 people on the system, compared to 2022.

“Voluntary social insurance policy also has 75,000 more freelance workers, which will help with their pension when they retire. This is significant growth compared to the previous year.”

The capital city’s labour market usually sees fluctuations after the Tet holiday when people switch jobs or decide not to return.

However, this year saw nearly 98 per cent of employees return to work after the holiday, which also means that they continue to be included and protected in the social insurance system.

Higher recruitment demands are also observed after the Tet holiday.

It is estimated that 162,000 jobs will be created in the capital city this year, which is considered a potential pool for social insurance.

Nguyen Thi Trang, a resident in Hanoi’s Phu Xuyen district said: “Having gone through the hardship of the COVID-19 pandemic, I truly understand the importance of a safety net. This is why since the beginning of 2023, I’ve been saving every month to join social insurance.”

Hanoi Social Insurance has set the goal to expand insurance coverage to at least 43 per cent of the current workforce. At least 2 per cent of freelancers and farmers are also expected to participate in social insurance by the end of this year.

Working with the Hanoi Tax Department, authorities will strengthen the inspection of employers to ensure that all workers who are employed under labour contracts are participating in compulsory social insurance.

The capital city’s Federation of Labour has also held talks with workers to better understand their needs and support their long-term participation in social insurance.

Meanwhile, trade unions at all levels will implement support policies for their members and labourers who are affected by decreasing working hours or had their contracts terminated.

These programmes will provide them with financial support during difficult times, while also minimising cases in which they leave the social insurance system.

Maintaining the number of people participating in social insurance is also included in the socio-economic development plans of localities.

Pham Thi Hoa, Vice Cairwoman of the Ha Dong District People’s Committee, said: “Implementing social insurance policies is one of the criteria in evaluating task completion of departments and businesses in the district.

“Ha Dong authorities will not accept bidding packages from companies and agencies that owe or do not submit social insurance payments for their employees.

“On the other hand, businesses and wards who have implemented policies and see an increase in social insurance participants will receive rewards and recognition.”

In Hanoi’s Dan Phuong district, the local People’s Committee also plans to hold talks with people to address current bottlenecks, aiming for stable operations in businesses and more opportunities for people to be employed and enjoy social insurance.