, A By: Xaikham PHANNALATH Governance, Administration and Implementation on Social Security in Laos ( Regional Seminar on Social Security: Standards, Policy and Legislation in Luang Prabang, Lao PDR 27 th. and 29 th. of August, 2013) By: Xaikham PHANNALATH

Overview I. Social Security Policy in Lao PDR II. Social Security Benefits System III. National Social Security Fund and Board of Fund IV. Prohibitions V. Social Security Affairs’ Management and Inspection Procedure

I. Social Security Policy in Lao PDR 1. The definition of social security The Social Security Is to ensure that insured persons receive benefits in case of health care, maternity(child-birth or miscarriage), work injury, sickness, invalidity, old age, death, client’s spouse and dependents and unemployment.

2. State Policy on Social Security  State encourages and promotes social security development to proceed with economic growth which state, employers, workers, self employed and voluntary to contribute to the National Social Security Fund to ensure benefits provision under the management of the state.  State encourages individuals, legal entities and organizations whether domestic and foreign to contribute financial and technical to develop social security.

3. Basic Principles on Social Security Social security is performed based on the following principles:  Ensure implementation of the policy and management of the social security by the rules and regulations;  Ensure the contribution by the government, employers, self- employed and voluntary to the National Social Security Fund;  Ensure protection of the rights and benefits of benefits provision to the insured persons and their spouse and dependents;  Ensure fair, transparency and accountable;  Ensure accumulation, risk pooling, mutually assistance and sustainable;  Be collaborate with Laos’s networking associated with the conventions and international agreements.

4. Obligations on Social Security Obligations to the Social Security include:  Government has obligation to share the national budget to contribute to the National Social Security Fund and guarantees the sustainability of the fund;  Employers are obliged to attend with the contribution to the National Social Security Fund;  Employees, self-employed and voluntary are obliged to register and contribute to the National Social Security Fund.

II. Social Security Benefits System 1. Types of benefits Coverage included in the social security benefits plan as follows:  Health Care;  Maternity ( Child-birth or miscarriage);  work injury;  Sickness;  Invalidity;  Death;  Old age;  Family with children (Spouse and dependents);  Unemployment.

2. Target Groups Qualify For Benefits  Civil servant, member of military and police, and employees shall be entitled to all types of benefits;  Self-employed and voluntary insured person (clients)shall be entitled to social security all types of benefits are included in the coverage.  Spouse and dependents of insured clients shall be entitled to health care, death and spouse and dependents benefits;  Deceased client shall be entitled to spouse and dependents benefits.

III. National Social Security Fund and Board of Fund 1. National Social Security Fund National Social Security Fund is accumulating contribution by the government, employers, employees, self-employed and voluntary to support social security benefits program. National Social Security Fund is guaranteed by the state and accepting the tax exemption on social security benefits payment plan.

1.1 Funds Benefits for clients in the Policy National Social Security Fund are classified into different categories as follows:  Health care benefit;  Work injury and occupational disease benefit;  Short-term sickness, child-birth or miscarriage and death benefit;  Long-term care and retirement pension, invalidity and spouse and dependents benefit;  Unemployment insurance benefit.

1.2 Financial Source of Fund Source of Fund are the following:  The government budgets;  Contribution by civil servants, members of the military and police, pensioners and invalidities;  Contribution by employers or enterprises;  Contribution by public and private sector employees;  Contribution of self-employed and voluntary;  Investment Interests or benefits from the National Social Security Fund. NOTE: Details of contribution payment plan in the policy of fund sources are in 1,2,3 and 4 are compulsory funds; and 5 is voluntary.

1.3 Contributions by government and private employers:  The government contribution is eight and a half percent (8.5%) of the total salary pay period of each month; For self-employed and other voluntary government shall contribute based on the policy coverage guideline.  The employers contribution is six percent (6.0%) of salary or wages pay period of each month.

1.4 Contributions from Workers/Insured Persons :  Civil servants, members of military and police’s contribution is eight percent (8.0%) of total salary pay period of each month;  Workers contribution is five and a half percent (5.5%) of salary or wages pay period of each month;  Pensioners and invalidity’s contribution are the same rate as contribution for health care plan;  Self-employed and voluntary’s contribution are the same rate as contribution of all benefits in the policy.

2. National Social Security Fund Executive Boards Responsibility: To manage the National Social Security Fund with the efficiency and effectiveness; The Lao PDR government establishes the Executive Board of the National Social Security Fund to manage the fund for centralization structure to make sure this fund has transparency, fair, accountable and sustainable.

2.1 Structure of the Executive Boards of the National Social Security Fund The Boards of the National Social Security Fund is included: 1. The Minister of Labor and Social Welfare, The Chair; 2. Vice Minister of Finance, The Vice-Chair; 3. Vice Ministry of Health, The Vice-Chair; 4. Vice President of the Lao Federation of Trade Union, The Vice-Chair; 5. Vice President of the Lao National Chamber of Commerce and Industry, The Vice-Chair; 6. Deputy Director General of the political affaire Depart., Ministry of Defense, A Board Member; 7. Director general of Policy Depart., Ministry of Public Security, A Board Member; 8. Director General of the Social Security Depart., Ministry of Labor and Social Welfare social, A Board Member;

9. Director General of Budget Department, Ministry of Finance, A Board Member; 10. Director General of Civil Servant Management Department, Ministry of Home Affair, A Board Member; 11. Director General of Health Care Depart., Ministry of Health, A Board Member; 12. Director General of Organization and Personnel depart., Lao Women Union, A Board Member; 13. Director General of Labor Protection Depart., Lao Federation of Trade Union, A Board Member; 14. Secretary General of the Lao National Chamber of Commerce and Industry, A Board Member; 15. Representatives from other parties to employers and employees, A Board Member; 16. The Director General of the National Social Security Fund, The Secretary and A Board Member.

2.2 Rights and Duties of the Executive Boards of the National Social Security Fund The Boards of the National Social Security Fund rights and duties see as follows:  To determine and approve the internal structure rules and regulations and take action plan of NSSF;  To Guide, support, monitor and inspect the activities of the Director for the Fund policy;  To approve the financial sources of NSSF;  To allocate ratio of each benefit fund comply with the requirements in each period according to agreement of the government;  To pass the contribution rates and level of benefits provision offers to the organization of Social Security management to have approval; and propose it to the government for approval;

 To have a social security card and create an insured client account;  To make budget plan for benefits provision; administer budget in quarterly, biannual, and annual; to propose to social security management organizations to approve;  To collaborate with regional and international relation networking and cooperate in the field of Social Security Fund’s management as assigned;  To summarize and report the implementation affair of the NSSF to the organizations of social security management and government as scheduled;  To practice other rights and duties as stated in the rules and regulations as assigned.

IV. Prohibitions 1.The Importance of Prohibitions for social security staffs See the prohibitions for social security staffs as follows:  Practice duties without fairness; lack of ethics, bias, no quality service, non-standard services; and violate the rules and regulation on the insured clients is prohibited;  Practice propaganda, having subsidy fraud or social categories, getting untruth documents or false statement, processing filing inapprpriated, damaging or making wrong references based on requested can be lose the social security benefits;  Abuse the position, the power, the duties and receive prizes/gifts for personal benefits usages is illegal;  Disclose unnecessary secrets and/or bleach confidential record of social security affairs is illegal;  Practice any misconduct behaviors is violation the rules and regulations of social security.

2. The Important Prohibitions Law for The Insured Clients, spouse and dependents:  Reporting of false datas is illegal;  Provide falsification documents to be qualified for benefits, giving or receiving prize/personal gifts is illegal;  Advertise a white minority social security staff or social security organizations is illegal;  Have any misconduct behavior is a violation of rules and regulations of social security benefits.

V. Social Security Affairs’ Management andInspection Procedure Government Team Management of Social Security Affair manage social security affaire procedure. Provides services of centralization and uniformity across the country is given by the Ministry of Labor and Social Welfare. (This Ministry is) responsible to direct and coordinate with different ministries, agencies, and other local authorities.. The Ministry of Labor and Social Welfare have Rights and duties to monitor different organizations through out the country.

2. The Ministry of Labor and Social Welfare Rights and Duties The Social security affairs, The Ministry of Labor and Social Welfare manage rights and duties as follows:  Conduct research on the social security policy, strategy, rules and regulations then submit this proposal to the government for approval;  Elaborate the social security affairs development policy and strategic plan into programs, projects, and activities;  Advertise disclosure policy, strategy, rules and regulations of social security benefits to the whole society;  Supervise, monitor and evaluate the implementation of the social security affairs and National Social Security Fund;  Issue the agreement, orders, and general information of social security affrairs;

 Coordinate with other sectors and local authorities to involve in the Implementation of social security;  Conduct assessment of the situation; provide resolution the requests of individuals, legal entities and organizations regarding the violation of malpractice of duties or decisions which violate rules and regulations of social security policy;  Select and propose to the Boards of the Social Security Fund so then can be submitted to the Government for approval;  Encourage and promote the public and private sectors to involve with National Social Security Fund;  Cooperate with regional and international organizations of social security policy project;  Provide Summary and report of the social security affairs outcome of implementation to the government as necessary;  Practice other rights and duties as stated in the rules and regulations.

4. Social Security Affairs Inspection Procedure: The main contents of inspection of social security affairs are as follows:  Provide the implementation of policies, strategies, action plan, rules and regulations of social security;  Monitor plans, programs, projects and activities of social security policy;  Continue work with the implementation of social security staff and social security benefits policy;  Check Financing sources of National Social Security Fund; monitor the expenditure of social security benefits and administration budget.

-¢º®Ã¥ Kobchai Thank You ¢ð¢º®Ã¥ Thank You For Your Attention