Promoting and Building Social Protection in Asia - Extending Social Security Coverage in ASEAN

In October 2013, ASEAN Heads of State adopted a Declaration on Strengthening Social Protection, pledging for the completion of social protection floors as a priority to achieve growth with equity. The Regional Framework for Strengthening Social Protection and its Plan of Action, adopted by the ASEAN Heads of State in November 2015, includes among its priorities the extension of social security coverage among informal economy workers, self-employed and micro, small and medium enterprises (MSME) workers. In Indonesia, the progressive implementation of the National Social Security Law (Law No. 40/2004) and the Social Security Service Providers Law (Law No. 24/ 2011) aims to extend social security coverage for the whole population in the areas of health, work injury, old age, and death of the breadwinner. However, the implementation of the National Social Security System Law, the social insurance branch in particular, has been slow since its enactment in 2004. As per April 2015, the social security branch (BJPS Ketenagakerjaan) covered around 16 million workers or less than 10 per cent out of its 128.3 million labour force. In Viet Nam, the Social Insurance Law passed in June 2006, and amended in 2014, covers public and private employees (in establishments with at least one employee, since amendment of 2009) in the event of disability, sickness, maternity, work injury, and old-age, and unemployment on a compulsory basis. Since 2008, informal sector workers are also eligible for the voluntary retirement and survivor pension scheme. As of November 2015, at most 12 million and 0.23 million workers are respectively covered by the compulsory and voluntary social insurance schemes, which accounts for a merely 20 per cent of the total labour force. Extending the coverage of social protection provisions, particularly social insurance to informal economy and MSMEs workers; improving the enforcement of the SI Law and related regulatory framework are among the priority areas. In particular, the Party Central Committee’s Resolution No. 15-NQ/TW dated 1 June 2012 sets a target of 50 per cent of the workforce covered by social insurance; and 35 per cent covered by unemployment insurance by 2020. Building on the achievements of the past two phases of the ILO/Japan Project on Promoting and Building Social Protection in Asia (2011-2013 and 2014-2016), and the solid partnership with ASEAN Member States, in March 2016, a third phase of the Project was approved between the donor, the ILO and the constituents, as a component too of the ILO’s Global Flagship Programme on Building Social Protection Floors for All. The new phase aims specifically at fostering knowledge, capacity and expertise for extending social security coverage in ASEAN. The project’s Phase III intends to generate better knowledge, understanding and expertise on extension of social security, and stimulate South-South cooperation across ASEAN Member States. In addition, the project’s Phase III provides direct support to Indonesia and Viet Nam, for increasing social protection coverage. Lessons learnt, experiences and good practices from the two countries will be disseminated across the ASEAN Member States and worldwide. The present project is developed in support to the implementation of Phase III of the ILO/Japan Project on Promoting and Building Social Protection in Asia.

Project symbol

RAS/16/52/JPN

Admin unit

RO-Asia and the Pacific
CO-Jakarta

Start date

01/01/2017

End date

31/12/2017

Total allocation

109753

Total expenditure

Status

Closed

109753

Development Partners

Japan, Ministry of Health, Labour and Welfare

Country/Countries

Viet Nam
Indonesia

Outcomes

Creating and extending social protection floors