Businesses urged to support social security
Businesses urged to support social security
The Social Security Organisation (SSO) has called on businesses to recognise the importance of social security, with organisation registration numbers currently at a low.
Currently, 1,019 enterprises are registered with SSO and pay into the social security fund, supporting 60,533 members.
Nearly 140,000 people have received a free healthcare card through the organisation.
According to SSO Director General, Mr Pasong Vongkhamchan, more than half of all enterprises in Vientiane are registered, however registration numbers are down.
“The number of registered enterprises is quite low when compared to the number of new enterprises,” he said. “We only reach 23.18 percent of all enterprises across the country, causing employees to lose their benefits when they get sick or lose their working capacity.”
SSO was set up in 2000 following the enactment of Prime Ministerial Decree No. 207.
The organisation guarantees the provision and management of social security benefits for employees of private sector companies and their dependents, including state-owned enterprises.
SSO offers employees a benefits package, which includes healthcare, financial allowances in case of illness, work accident benefits and pension benefits.
Contributions for SSO members, whether mandatory or voluntary, are paid monthly to the social security fund.
The contribution amount totals 9.5 percent of a salary up to a monthly threshold of 1.5 million kip, with the employer paying 5 percent and the employee 4.5 percent. SSO has more than 349 billion kip in its fund.
“Although many enterprises have registered social security for their employees in the last three years, the number of registered enterprises is low if compared to the number of new enterprises,” Mr Pasong said.
“Enterprise sectors need to see the important role of social security and urgently register for their employees.
“It will not only help to manage welfare for company employees, but also respect the law. At the same time, it will ensure enterprises have strong, high-quality employees.”
vientiane times
