Digital transformation helps pay salaries through accounts, not cash

Implementing Directive 21 of the Prime Minister on promoting digital transformation in non-cash social security payments, from December 2022, the Ministry of Labor, War Invalids and Social Affairs has guided provinces and cities across the country to implement it to beneficiaries of social security policies in the area.

Localities have implemented information collection and payment through accounts for social security beneficiaries who need to receive money through accounts.

Deputy MinisterLabor, War Invalids and Social AffairssocietyNguyen Ba Hoan said that from January 2023 to June 22, 2023, 26/63 provinces and cities have implemented cashless payments for social security beneficiaries.

The total number of social security beneficiaries with accounts who want to make non-cash payments is 538,563 people, an increase of 59,632 people compared to May 2023.

The number of beneficiaries who have received subsidies through their accounts is over 115,000 people, with a total payment of nearly 142 billion VND since the beginning of the year.

Deputy Minister Hoan said that currently, propaganda and mobilization work on the policy of paying social security without using cash to beneficiaries in provinces and cities is being promoted through agencies, departments, unions, and local authorities at all levels.

Early connection of national population database with banks

LeaderMinistry of Labor, War Invalids and Social Affairssocietysaid that, besides the achieved results, there is still a situation where some local authorities have not focused on directing the implementation of propaganda on the policy of cashless payment to social security beneficiaries in the area, and have not fully grasped the information reflected from the beneficiaries.

Some officials in charge of the fieldLabor, War Invalids and Social AffairssocietyAt the commune level, when new cadres are transferred to new positions, they have not yet grasped their professional tasks in time, have not yet grasped the target, and are in charge of many areas, so implementation is not timely.

The beneficiaries of social security policies are mostly the elderly and vulnerable people who face many difficulties in transactions and receiving benefits through bank accounts, e-wallets, mobile money accounts, etc., so they are hesitant and still want to receive benefits in cash.

Some subjects such as the elderly, disabled, mentally ill, children... need to carry out authorization procedures or confirm circumstances so that relatives (the person directly raising the subject) can stand up to receive the subsidy money through the account.

On the other hand, currently, when opening a bank account, beneficiaries will have to pay costs such as: account opening fee, account maintenance fee, account management fee, Internet Banking service, withdrawal fee... while beneficiaries of social security benefits are all vulnerable groups with low incomes, they are not willing to pay these costs. This is also one of the limitations that makes beneficiaries unwilling to participate in receiving benefits through accounts.

In addition, many localities have large areas, remote areas, and especially difficult areas, where policy beneficiaries live scattered and not concentrated, and policy beneficiaries are the elderly, the sick, the infirm... and live far from cash withdrawal points.

Commune-level police in some localities reported that they have not yet verified account information on the National Population Database System because there is no software to connect with the State Bank of Vietnam and payment intermediaries (NAPAS).

Given the above reality,Ministry of Labor, War Invalids and Social AffairssocietyThe Ministry of Public Security is requested to soon have software connecting the national population database with the State Bank of Vietnam and payment intermediaries (Napas) to facilitate localities in authenticating account information of social security beneficiaries during the implementation of Directive No. 21.

Propose that the Administrative Procedure Control Department, the Government Office, coordinate with the Ministry of Justice, the Ministry of Information and Communications, the Ministry of Justice and relevant agencies to quickly complete the legal corridor in implementing administrative procedures in the online environment.

SimultaneouslyMinistry of Labor, War Invalids and Social AffairssocietyIt is also recommended that the People's Committees of provinces and centrally-run cities strengthen the direction of departments, branches, sectors, and People's Committees at all levels to speed up the implementation of Directive No. 21, collect and update information on beneficiaries' accounts, and make payments through accounts to eligible beneficiaries of social security policies.

According to Vietnamnet