project document: promoting and building social protection in asia
TRANSCRIPT
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INTERNATIONAL LABOUR ORGANIZATION
DEVELOPMENT COOPERATION
PROJECT DOCUMENT TEMPLATE (PRODOC)
Cover page
XB Symbol: RAS/16/03/JPN
Project title: Promoting and building social protection in Asia (3rd phase): Extending social
security coverage in ASEAN
Country: ASEAN countries (focus on Indonesia and Viet Nam)
P&B Outcomes:
Flagship global programme on social protection floors
Outcome 3: Creating and extending social protection floors
RAS 126: Increased knowledge and capacity in the region to promote
coherent policies in support of decent work for all women and men
DWCP Outcome:
VNM151 - Strengthened national capacities and knowledge base for the
effective implementation of social security policies and strategies.
IDN103 - Government and social partners have greater capacity in designing
and implementing social protection policies and programmes.
Technical field: Social Protection Department (SOCPRO)
Administrative
unit: ILO Regional Office for Asia and the Pacific
ILO Responsible
Official:
Ms Tomoko Nishimoto, Assistant Director General and Regional Director for
Asia and the Pacific
Technical
Backstopping
Unit:
ILO Decent Work Technical Support Team for East and South-East Asia and
the Pacific (ILO DWT-Bangkok)
Collaborating ILO
Units: Country Offices for Indonesia and Viet Nam
External
Implementing
Partners:
ASEAN Secretariat, ASEAN SLOM and SOMSWD
Indonesia: Ministry of Manpower and Transmigration, BPJS
Ketenagakerjaan, Bappenas, Indonesian workers and employers’
organizations;
Viet Nam: Ministry of Labour, Invalids and Social Affairs of Viet Nam, Viet
Nam Social Security, Viet Nam workers and employers’ organizations;
Japan Federation of Labour and Social Security Attorney Association
Time frame: March 2016 to March 2019
Budget
requested:
US$ 1,839,000 (2016: US$ 664,017; 2017: US$ 384,487; estimated 2018:
US$ 790,495)
Evaluation
requirements: Final external evaluation
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EXECUTIVE SUMMARY
There is globally and in the Asia Pacific region a growing consensus that the establishment of
social protection floors is a key element of the policy framework to reduce poverty and
inequalities and achieve inclusive and sustainable development. It is at the core of the
Sustainable Development Goals by 2030. During the past decade, ASEAN countries have made
progress in extending social protection, with the emergence of statutory schemes in all ASEAN
countries. However, coverage and level of protection across the population and across
countries remain unequal and insufficient. There is still a need for improving policy and
institutional framework for the effective and efficient delivery of social protection.
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.
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,1 a third phase of the Project is here proposed, 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 intends to generate better knowledge,
understanding and expertise on extension of social security, and stimulate South-South
cooperation across ASEAN Member States. The project 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.
1. BACKGROUND AND INFORMATION
1.1. Extension of social protection, a global priority
Today nearly 73 per cent of the world’s population lacks access to adequate social protection
coverage.1 A majority of the world’s economically active population do not benefit from any
protection in cases of unemployment (88 per cent of unemployed have no unemployment
benefits), work-related injury (61 per cent are not covered in case of work-related accidents
and diseases), or maternity (72 per cent of working women have no access to maternity cash
benefits). Nearly half (48 per cent) of all people over pensionable age do not receive a
pension, and for those who do, pension levels are often inadequate.
In recent years, social protection has become an increasingly prominent priority in
international agreements and development plans. Since its adoption in 2012, the ILO’s
1 Source: ILO. 2014. World Social Protection Report 2014-15: Building economic recovery, inclusive development
and social justice
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Recommendation on Social Protection Floors, No.202 (2012) has served as an accelerator of
social protection extension while providing concrete guidance to countries. The importance of
social protection to reduce poverty and inequalities and achieve inclusive and sustainable
development is also at the core of the Sustainable Development Agenda adopted by the
United Nations General Assembly in September 2015. In 2015 too, the ILO Governing Body
adopted a Global Flagship Programme on Building Social Protection Floors for All, as part of its
overall Development Cooperation Strategy (2015-2017), thus fostering the role of the ILO in
promoting social protection.
1.2. ASEAN’s commitment to create and extend social protection floors and progressively
build more comprehensive social security systems
The fundamental human right to social security remains only partially fulfilled for the large
majority in the region. Five ASEAN countries have statutory schemes covering at least six out
of nine social security risks (see table below). One Member State – Thailand – has a
comprehensive legal scope with statutory programmes in every social security policy area.
Table 1. Overview of national social security system.
Country
Existence of statutory programme
Me
dic
al
care
Sic
kn
ess
(ca
sh)
Ma
tern
ity
(ca
sh)
Old
-ag
e
Wo
rk i
nju
ry
Inv
ali
dit
y
Su
rviv
ors
Fam
ily
all
ow
an
ces
Un
em
plo
ym
en
t
Brunei Darussalam Ω Σ Σ √ √ √ √ None None
Cambodia None Σ √ None Σ
Indonesia √ Σ Σ √ √ √ √ None Σ
Lao PDR √ √ √ √ √ √ √ None
Malaysia Ω Σ Σ √ √ √ √ None Σ
Myanmar √ √ √ √
Philippines √ √ √ √ √ √ √ None Σ
Singapore √ Σ Σ √ √ √ √ √ None
Thailand √ √ √ √ √ √ √ √ √
Viet Nam √ √ √ √ √ √ √ None √
None: No statutory programme anchored in national legislation.
√ At least one programme anchored in naKonal legislaKon.
Ω Medical benefit in kind without statutory programme anchored in national legislation.
Σ Limited provisions via employer’s liability under national labour code (includes company sick leave and severance pay provisions).
Programme has yet to be implemented.
Box 1: ASEAN’s commitment to extend social protectio n ASEAN Human Rights Declaration (2012) Article 30(1): Every person shall have the right to social security, including social insurance where available, which assists him or her to secure the means for a dignified and decent existence. ASEAN Socio-Cultural Community Blue Print, 2025 B.3. Promotion and Protection of Human Rights: Support accelerated implementation among ASEAN Member States to extend coverage, accessibility, availability, comprehensiveness, quality, equality, affordability and sustainability of social services and social protection. Source: ASEAN Socio-Cultural Community Blue Print (2015) (http://www.asean.org/storage/2016/01/ASCC-Blueprint-2025.pdf ), ASEAN Human Rights Declaration, 2012 (http://aichr.org/documents/ ).
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Legal coverage rates of work injury schemes – most of which are social insurance-based –
range from a low 6.7 per cent to a high 88.0 per cent among nine ASEAN countries (excluding
Myanmar) with a regional average of 46.2 per cent. For those of old age, only 30 per cent
receive a monthly pension from both contributory and tax-funded schemes. Even when old-
age pension exists, the level of benefit is often inadequate. Effective coverage is far lower due
to lack of voluntary coverage, compliance enforcement, and exemptions in compulsory social
insurance coverage that can be used as legal loopholes for employers and employees to avoid
social contributions. On the other hand, social assistance programmes across the ASEAN
countries are still limited in coverage and level of benefits, which limits their capacity to
complement the limited protection offered by social insurance schemes.
Extension of ASEAN’s social protection coverage is becoming more urgent as the deeper
integration brought by the ASEAN Economic Community (AEC) approaches. According to a
recent International Labour Organization (ILO)-Asian Development Bank (ADB) report, the AEC
could spur growth of 7 per cent in the ASEAN economy and create 14 million additional jobs.
However, these overall gains will not be distributed evenly; while some sectors will flourish,
others are likely to see job losses. Workers without the right skills may not be able to seize
these new opportunities. Social protection will play a crucial role of compensating for any
short-term loss of income and will facilitate access to education, skills, and decent
employment. This will ultimately increase productivity and economic growth.
In October 2013, ASEAN Heads of State adopted a Declaration on Strengthening Social
Protection as one of the key priority areas to achieve growth with equity. It specifically states:
“Extending coverage, availability, quality, equitability and sustainability of social protection
should be gradually promoted to ensure optimal benefits to the beneficiaries”, ASEAN
Declaration on Strengthening Social Protection, Brunei Darussalam, 9 October 2013.2
The Declaration represents a clear commitment by ASEAN member States to establish social
protection floors and systems across the region. On 21 November 2015, in Kuala Lumpur,
Malaysia, ASEAN Leaders adopted a Regional Framework and Action Plan to implement the
Declaration3 which dedicates one component on advocacy for extension of coverage to
informal workers, “ including but not limited to self-employed, micro-entrepreneurs, small
farmers, and fisher folks”, as defined in the Framework.
2
http://www.asean.org/images/archive/23rdASEANSummit/5.%20asean%20declaration%20on%20social%20prot
ection_final.pdf 3 http://www.asean.org/images/2015/November/27th-
summit/ASCC_documents/ASEAN%20Framework%20and%20Action%20Plan%20on%20Social%20ProtectionAdo
pted.pdf
Sources: C. B, Ong; C. Peyron Bista, 2015: The state of social protection in ASEAN at the dawn of integration, ILO, Bangkok.
Box 2: Definition of informal economy : All economic activities by workers and economic units that are – in law or in practice – not covered or
insufficiently covered by formal arrangements (Recommendation 2015, No. 204).
The ILO Department of Statistics distinguishes between employment in the informal sector, i.e. employment in informal enterprises, and informal employment , including employment in informal jobs both in the formal and informal sector (ILO, 2012a), thus referring to all employment arrangements that do not provide individuals with legal or social protection through their work, whether or not the economic units they work for or operate in are formal or informal enterprises or households (ILO, 2013d).
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Social protection coverage in ASEAN currently excludes a large proportion of its population,
not enrolled in contributory social security schemes, and have limited access to tax-funded
social protection benefits and social services. Even for those who will be legally covered by
social insurance schemes, enforcement of social security laws remain a challenge in countries
where over 65 per cent of the workers are in the informal economy (Vanek et al. 2014), where
business is dominated by small and medium enterprises and own-account workers and unpaid
family workers still represent nearly half of the work force (WESO 2015, ILO).
Figure 1: share of employment by status and sex in ASEAN
Source: World Employment and Social Outlook, ILO, 2015
1.3. Building on the achievements of the ILO/Japan Project on Extending
Social Protection in Asia (2011-2015)4
The Ministry of Labour, Health and Welfare of Japan, through the ILO/Japan Multi-bilateral
Programme, has supported the extension of social protection in the Asia-Pacific region since
2011. In particular the ILO/Japan Project on Promoting and Building Social Protection in Asia 5,
through capacity building and awareness raising, has influenced the adoption of the ASEAN
Declaration on Strengthening Social Protection. The Declaration reflects the principles
included in the ILO Recommendation on Social Protection Floors, No.202 (2012). The Project
also achieved to engage regional and national workers and employers’ representatives in the
definition and now implementation of the Regional Framework on Strengthening Social
Protection and its Plan of Action. At country level, the Project helped improving the legal
framework and implementation of the unemployment insurance scheme in Viet Nam;
4 Phase I (2011-2013) Promoting and building unemployment insurance and employment services in ASEAN
(ASEAN and focus country, Viet Nam); Phase II (2014-2016): Promoting and building income security and
employment services for vulnerable groups in Mongolia, learning from ASEAN (ASEAN and focus country
Mongolia). 5 Factsheet: ILO-ASEAN Partnership on social protection
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developed a solid knowledge on unemployment protection; and finally, contributed to the
extension of old-age pension to herders, informal workers, self-employed, and the national
strategy for increased income security (social protection and business development) of young
herders in Mongolia.
The third phase (2016-2018) builds on achievements, expertise and good practices of the past
five years of the ILO/Japan Project and the solid partnership on social protection with ASEAN
Member States. The ILO/Japan project is now recognized as a key partner to discuss social
protection at the ASEAN level, with the confirmed engagement of workers and employers’
organizations. Thanks to continuity in ILO/Japan support to the region Asia-Pacific in the area
of social protection, long-term and sustainable impact is now visible. The new phase aims at
specifically fostering knowledge, capacity and expertise for extending social security coverage
in ASEAN.
Across ASEAN countries, social security systems and reforms are at different stage of
development. Among countries with already several years of social security implementation
(Indonesia, Malaysia, Philippines, Singapore, Thailand, Viet Nam), Indonesia and Viet Nam
have recently adopted major reforms mainly aimed at extended coverage, respectively in
2015 and 2014. Among ASEAN countries that are still at the early stage of implementing a
broader social security system that will cover those outside civil service (Cambodia, Lao PDR,
Myanmar),.Reforms in these two countries respond to pressuring needs for extending and
strengthening social protection. In additional to the regional component, the project proposes
to add country interventions specifically in these two countries.
1.4. Background and problem analysis in Indonesia
Since its amendment in 2002, the Indonesian Constitution recognizes the right of all people to
social security, and the responsibility of the State in the development of social security.
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. The National Social Security Law follows a staircase approach with non-
contributory schemes for the poorest people, contributory schemes (with nominal and
subsidized contributions) for the self-employed and informal economy workers, and statutory
social security schemes (with contributions set at a percentage of wages) for formal sector
workers and their dependents. The implementation of the National Social Security System
Law, the social insurance branch in particular, has been slow since its enactment in 2004.
From 2014, social security schemes before managed by four State-owned limited liability
companies are undergoing consolidation to become two public social security administering
bodies: BPJS Kesehatan (Health) and BPJS Ketenagakerjaan (Employment) 6. The new BJPS
Ketenagakerjaan (Employment) was launched on 1 July 2015, replacing the former PT
Jamsostek, previously managing the private companies’ provident fund for old-age lump sum,
employment injury, and funeral benefit. BPJS Ketenagakerjaan (Employment) will also absorb
the old-age pension and old-age lump sum scheme for the civil servant by 2029.
6 BPJS Kesehatan is the social health insurance branch of the social security system in Indonesia; while BPJS
Ketenagakerjaan, that can be translated by Employment, provides benefits for old-age and survival (under a
defined benefits scehme and provident fund), and employment injury insurance.
7
In addition, a pilot mechanism for extending social security coverage to workers of the
informal economy (the government subsidizing the workers’ contribution) has been tested in
the Capital Region of Jakarta and in several districts across Indonesia, by the Ministry of Social
Affairs (Askesos programme) and Ministry of Manpower and Transmigration (TKLHK
programme)7. However, due to the absence of proper monitoring and evaluation mechanism
and some governance issues, the Ministry of Manpower and Transmigration decided to
suspend this subsidized contribution to informal workers’ programme in 2014.
With the full operationalization of BJPS Ketenagakerjaan (Employment), the Government of
Indonesia and social partners are joining efforts in designing innovative measures aimed at
extending social security coverage in small and medium enterprises, self-employment and
informal economy.
The project proposes to address the following major issues that can explain the law
enforcement of social security laws in Indonesia:
1. Weak enforcement of social security compliance mechanisms resulting in a low participation
in the social insurance system, including among the formal sector
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 force8. Insured under
BPJS Ketenagakerjaan are 14.8 million9 registered as “regular worker" under the compulsory
scheme and 1.2 million insured as “casual worker" under the voluntary scheme out of the
estimated 62 million. Overall 53.4 per cent of the employed (115.3 million) are found in the
informal economy as per February 201410.
Such results demonstrate a lack of compliance across the formal economy, in particular
among small and medium enterprises with significant disparities across provinces, as shown in
the figure 2.
Figure 2. Number of BPJS Ketenagakerjaan Active Participant by Province as of October 2014
Source: BPJS Ketenagakerjaan, 2014
7 See Report of the Assessment Based National Dialogue, Towards a Social Protection Floor in Indonesia, ILO,
Jakarta, 2013 8 Source: Labour force as of February 2015, Badan Pusat Statistik: Indikator Pasar Tenaga Kerja Indonesia
Februari 2015 (Jakarta, Badan Pusat Statistik, 2015). http://www.bps.go.id/Publikasi/view/id/1019 9 14,774,304 registered as “regular worker" under the compulsory scheme and 1.172.382 insured as “casual
worker" under the voluntary scheme. 10 ILO, 2014: Indonesia: Labour and social trends update August 2014 (Jakarta, 2014)
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Reasons for the low participation are multiple: recent reform and lack of information among
employers and beneficiaries on the new regulations, low attractiveness because of
inadequate benefits level, lack of trust in public institutions especially to manage financial and
fiscal risks, unappropriated institutional frameworks and procedures to expand and sustain
regular contributions from MSMEs, self-employed and informal workers and.
2. Weak enforcement of social security compliance mechanisms
According to the Social Security Providers Law (No.24/2011), registration to the five social
insurance schemes (Health (BPJS Kesehatan), old-age pension and provident fund,
employment injury and survivors’ benefit (BPJS Ketenagakerjaan)) is compulsory for all formal
workers. Article 11 of the Law provides for administrative and criminal sanctions for non-
compliance.11 Administrative sanctions apply to employers and employees as well as those
receiving subsidy that do not register properly, while criminal sanctions concern employers
only, under the Law 8/1981 on Criminal Procedure Code (KUHAP).
Despite legal provisions sanctioning non-compliance with social security laws (partial
compliance or full compliance), enforcement remains low. The low level of registration among
micro, small and medium enterprises question either the adaptation of the sanctions and
application conditions to these groups or the inspection mechanism. Unlike Jamsostek (the
private sector workers’ social security agency), BPJS Ketenagakerjaan (Employment) has full
authority to undertake inspections for social security compliance and make recommendations
to the respective authority (Provincial government, district municipality) for sanctions. There
is a need to reinforce the capacity of the recently established supervising unit under BPJS
Ketenagakerjaan (Employment) and the coordination between this unit and the general
labour inspection functions of the Ministry of Manpower and Transmigration.
3. Low coordination between actors and insufficient incentives for the coverage of workers
from the informal economy
The assessment based national dialogue on social protection, concluded in 2013, identifies
gaps in the implementation of social protection programmes at national and sub-national
levels. Among the issues are the uncoordinated planning and budgeting process, fragmented
and un-coordinated programmes, non-existence of integrated monitoring and evaluation
mechanism, and excessive number of liaison officers working at the local level for the same
targeted household.
The Ministry of Social Affairs has been traditionally responsible for the coverage of informal
economy workers. Its main programme, Askesos, has been merged with BPJS Ketenagakerjaan
(Employment) to reduce duplication. However, improving efficiency of these interventions
requires a better coordination between the Ministry of Social Affairs and BPJS
Ketenagakerjaan. Efforts for improving policy and programmes coordination in order to
increase impacts on poverty reduction, linkages between social protection and employment
programmes, and bridges between social assistance and social insurance, are taking place but
remain limited. Beneficiaries of social security programmes, for instance, do not benefit from
any specific access to employment services that can help in improving their employability.
11 Administrative sanctions are in the form of written warning, fine, and/or deprived from public
service for business registration; exempted from government project; driving license; land
certificate; passport; vehicle registration number; and penal sanctions in the form of fines and
imprisonment up to eight years
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Conversely, beneficiaries of employment programmes, such as the community empowerment
programmes (PNPM), are not systematically enrolled in health or other social protection
schemes even though social protection schemes targeting informal sector workers do exist.
4. Insufficient reach-out and unclear administrative procedures for registration, payment of
contributions and benefits claims
The National Social Security System Law (No. 40/2004) and Law on Social Security Providers
(No. 24/2011) set a good foundation for extending social security coverage; however new
BPJS Kesehatan and BPJS Ketenagakerjaan will need to find effective ways to reach out to
informal sector workers, the majority of whom have never been part of any social security
scheme. Access to social security services remains a challenge, with significant disparities in
availability of social security offices among provinces districts and sub-districts. In order to
address this issue, BPJS Ketenagakerjaan is now testing registration points installed at retailer
shops and is developing e-services (online registration, mobile application). The increased use
of these technologies and innovative approaches to deal with MSMES and self-employed and
for workers in rural zones and remote areas with limited connection to internet are key to
effectively reach the maximum of Indonesians.
The assessment based national dialogue on social protection (2013) recommended integrating
the delivery of all social protection programmes under one stop service and a single
registration system, called the single referral system. The State Ministry of National
Development Planning (Bappenas) is currently examining several design option of the
implementation of such Single Referral System.
1.5. Background and problem analysis in Viet Nam
The term “social protection” was first officially introduced in the Communist Party’s
documents in 2001. It has then evolved over time and now encompasses active labour market
policies, social assistance, social insurance, and basic social services. 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 on a compulsory basis. Amidst the
global financial crisis in 2008-09, an unemployment insurance (UI) scheme was introduced to
replace the existing severance pay system in 2009. Under the Social Insurance Law, since
2008, informal sector workers are only eligible for the voluntary retirement and survivor
pension scheme. Extending the coverage of social protection provisions, particularly social
insurance to informal economy 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.
While commending the Party’s acknowledgment of the need to reform social insurance
system, many commented this was a too ambitious target. Despite a rapid expansion of the
social insurance coverage in the last decade, as of November 2015, at most 12 million and
0.23 million workers are respectively covered by the compulsory and voluntary social
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insurance schemes12, which accounts for a merely 20 per cent of the total labour force; and
10.2 million workers contribute the unemployment insurance scheme13. The coverage
remains particularly low among small and medium enterprises and workers with short-term
contracts. Informal economy workers, administratively identified as those holding a contract
of less than three months (one month from 1 January 2018), self-employed and rural workers,
are still largely excluded from social insurance coverage except for the voluntary retirement
and survivor pension scheme introduced in January 2008. Out of 52.2 million workers, 32.7
million are either own-account or unpaid family workers. It means six out of ten jobs in Viet
Nam are vulnerable or informal; that is without or very limited social protection. Even among
enterprises due to register on a mandatory basis, enforcement of the social security laws
remains a challenge, especially among the small and medium enterprises representing the
large majority of establishments. Among all registered private enterprises, less than 50 per
cent contributed to the Viet Nam Social Security fund (VSS) in 2010.14
To achieve the target on social security coverage and increase financial sustainability in light
of an ageing population and economic slowdown, Vietnam reformed its Social Insurance Law
in November 2014. The amendment came into effect as of 1 January 2016 and aims to tackle
key issues of the social security system: coverage, adequacy and long term financial
sustainability. Key adjustments include extending the scope of application of the law to all
employees with contracts of at least one month of duration, improving voluntary participation
among self-employed and workers with atypical forms of labour, allowing more flexibility to
payment schedules, lowering the minimum contributions, matching voluntary contributions
with government subsidies, and strengthening labour and social insurance inspection
Past operations show that impediments to extending social security coverage in Vietnam are
complex and inter-related. Reforms in policy and legal framework, institutional capacity and
governance are needed to translate the recent law amendments to an effective increase in
workers’ coverage.
The project proposes to address the following major issues.
1. Low capacity in policy formulation and implementation
The Government and social partners play a very important role in formulating policies and
mechanisms to encourage individuals and enterprises to participate in the social insurance
system, including in the voluntary scheme. There is a shortage of analysis on the formulation
of regulations, laws and policies on social protection among the Government’s officials and
social partners. When there is, the quality of the analysis is weak, thus hindering the
coherence and effectiveness of laws and regulations. For instance, limited emphasis has been
put on qualitative impact analysis that are nevertheless crucial to formulate measures to
improve the social security system in Viet Nam.
12 Vietnam Social Security, 12/2015: VND 187,000 Billion Collected in 11 Months from social insurance and health
insurance contributions, http://www.baohiemxahoi.gov.vn/?u=nws&su=d&cid=384&id=13880, accessed on
8/1/2016 13 Ibid 14 S. Lee, N. Torm, 2015: Social security and firm performance: the case of Vietnamese SMEs (in: International
Labour Review, Available at: http://onlinelibrary.wiley.com/doi/10.1111/j.1564-913X.2015.00054.x/epdf.)
11
At the implementation level, lack of coordination and information between central and local
levels, insufficient staff resources and training, hinders the proper implementation of the laws
and policies.
2. Low capacity of social security inspection and weak coordination between social insurance
inspection and labour dispute settlement administration
In Viet Nam, intentional evasion from social security responsibilities persist and takes the form
of unregistered business and/or employees working without contracts, unregistered
employees to VSS (full non-compliance), and employees registered with lower salaries (partial
non-compliance). Delay and default in payment of social insurance contributions on the part
of employers is widespread. According to VSS’s report, social insurance debt amounted to
8,600 billion Viet Nam Dong as of 31 October 201515.
Social security inspection plays a crucial role to identify and report those cases and to settle
dispute between employers and employees concerning social security compliance. In
Vietnam, the inspection force satisfies only one fifth of the needs. As of end of 2014, there
were 492 inspectors and inspection employees nationwide. The ratio of inspectors and
workers in Vietnam is 1 inspector every 100,000 worker. According to ILO's recommendations,
as for developing countries, there should be 1 inspector for every 15,000 - 20,000 workers16.
In terms of quality, the number of trained and officially appointed principal inspectors and
senior inspectors is low (i.e. approximately 10.4 per cent of the inspection force)17. Many
inspectors have not attended basic professional training for the inspection work. The
amended Social Insurance Law adopted in 2014 gives the power of inspecting social security
contribution to VSS. It is unclear as whether VSS is taking measures to expand its inspection
capacities. Also modalities for coordination between labour inspection/labour dispute
settlement administration and social security inspection for an improved enforcement of
social security laws have not been defined yet.
3. Low awareness and lack of incentive to contribute to the social insurance system
Some employers are not convinced of the benefits of social security to protect their
employees and business and do not fully understand the concept and principles of insurance.
There is a common miss-conception among employers that social security is a cost to the
business. However, an ILO’s unpublished study estimates, Based on enterprise census data
covering all registered firms across the 63 Provinces of Vietnam from 2006 to 2011, that
enterprises which increase the social security coverage by 10 per cent, experience a per
worker revenue gain of between 1.1-2.6 per cent and a profit gain of around 1.3-3.0 per cent.
Such study can be very valuable to promote social protection among employers.18
Another reason for low enforcement can be lack of awareness among employers on the
recent amendment in the law and expansion of the scope to workers with less that three-
month contracts and all enterprises.
15 Vietnam Social Security, 12/2015: VND 187,000 Billion Collected in 11 Months from social insurance and health
insurance contributions, http://www.baohiemxahoi.gov.vn/?u=nws&su=d&cid=384&id=13880, accessed on
8/1/2016; 16 Van, Nguyen Thi 2015, Labour Inspection Training: Policies, Practices, and Future Vision, ILSAT 17 Ibid. 18 S. Lee, N. Torm, 2015: Social security and firm performance: the case of Vietnamese SMEs (un-published, 2015)
12
In addition, complex and time-consuming processes for registration, payment and claim are
deterrent to increasing social insurance participation. A solid analysis of these implementation
and administration shortcomings as well as reasons for low incentive in participating in the
system is missing and nevertheless needed to improve the delivery mechanisms of social
services and benefits.
Also, the insufficient protection provided by the short-term benefits (sickness leave, maternity
leave, working injury and occupational disease, and unemployment benefits19), due to
implementation and management shortcomings, do not create incentive among workers to
contribute to the system.
Lack of trust in public institutions and uncertain sustainability of the social insurance fund may
also result in low incentive to contribute to the social insurance system may among
employees and informal economy workers.
1.6. Stakeholders and target groups
The direct recipients and partners of the project are:
• The ASEAN Secretariat;
• Policy makers, managers and technical staff of Ministries in charge of policy
development and implementation of social protection (Ministries of Labour, Social
welfare, Health, Rural Development, etc.), in charge of decentralization and local
administration (Ministries of Interior, Planning), in charge of planning and finance
(Ministry of Finance, State’s Budget Bureau) as well as their technical and implementing
departments (Social security offices);
• ASEAN Trade Unions Council (ATUC) and national workers’ representatives of ASEAN
countries;
• ASEAN Confederation of Employers (ACE) and employers’ representatives of ASEAN
countries;
• Civil society organizations and academic institutes;
• Japan Federation of Labour and Social Security Attorney Association.
In Viet Nam,
• Ministry of Labour, Invalids and Social Affairs (MOLISA) (in particular Social Insurance
Department (SID));
• Viet Nam Social Security (VSS) and its Provincial Social Insurance offices;
• Viet Nam General Confederation of Labour, Viet Nam Chamber of Commerce and
Industry;
• National Assembly Commission on Social Affairs (NAC-SA).
In Indonesia,
• Ministry of Manpower and Transmigration (in particular the Directorate General for
Industrial Relations and Social Security), Ministry of Social Affairs, Ministry of National
Planning and Development (BAPPENAS), sub-national government; and
19 In November 2013, the adoption of the Employment Promotion Law transferred the unemployment
insurance benefits from the Social Insurance Law to the new Law, with effective implementation of the new
provisions from May 2015.
13
• BPJS Ketenagakerjaan- Employment;
• National Social Security Council (DJSN);
• Employers association (APINDO),
• The Confederation of Indonesian Prosperity Trade Unions (KSBI), The Indonesian Trade
Union Confederation (KSPI), The Congress Alliance of Indonesian Labor Unions (KASBI)
and All-Indonesian Workers’ Union Confederation (KSPSI).
The final beneficiaries are women and men in the working age, with a special attention to:
• own-account workers and unpaid contributing family workers;
• wage earners working in micro, small and medium enterprises;
• employees without contract and sub-contracted workers;
• casual, seasonal and short-term workers; and
• migrant workers (undeclared by their employees or falling into the gaps of the system).
The project limits its intervention related to labour dispute settlement and industrial relations
only to issues related to social security. A reason is because if the scope of industrial relations
is to be expanded, then the final beneficiaries would be different to the one listed above.
Another reason is limited resources available that requires prioritization and focus of the
interventions as to ensure better results and impact. The decision for prioritizing on social
protection is justified by the positive and visible results achieved during the past two phases.
Indirectly the United Nations regional offices and country teams, as well as other
development actors on social protection, are also implementing partners, as the project
constantly seeks to create synergies with other technical cooperation projects rather than
favouring uncoordinated interventions and duplication of efforts. During the past phases, the
project has worked together with FAO, UNDP, UNESCAP, UNFPA, UNICEF, WHO, and
UNWOMEN in promoting social protection both at regional and national levels.
2. STRATEGY AND LOGICAL FRAMWORK
2.1 Description of the Project Strategy
Project’s strategic fit as a contribution to global and regional commitments
ILO Social Protection Floors Recommendation, No. 202 (2012) and Recommendation on
the Transition from the Informal to the Formal Economy, No. 204 (2015)
At the 101th International Labour Conference (ILC) in 2012, the ILO constituents committed to
improve social protection coverage among informal and vulnerable workers by establishing
nationally defined social protection floors as part of their progressively comprehensive social
security systems (ILO Social Protection Floors Recommendation, 2012 (No. 202)). More
recently, in 2015, the 104th ILC adopted a new Recommendation on the Transition from the
Informal to the Formal Economy, thus reiterating the importance of guaranteeing access to
social protection to informal economy workers and facilitate transition to the formal
economy. Recognizing the linkages between social protection gaps, poverty and vulnerability,
and informality, the Recommendation advocates that in promoting the transition to the
formal economy, governments should take actions to progressively extend, both legally and
effectively, social security, maternity protection, decent work conditions and a minimum wage
14
to informal economy workers (Art. 18). Building social protection floors will provide at least
minimum protection and income security to the entire population. The extension of social
protection coverage to the informal economy will require a comprehensive policy strategy
that includes an appropriate policy mix of non-contributory and contributory schemes, the
reduction of barriers to the formalisation of small and medium enterprises, and strong
linkages with national employment policies. Those objectives are also at the core of the
ASEAN Declaration on Strengthening Social Protection (October 2013).
ILO Global Flagship Programme on Building Social Protection Floors for All
In 2015, the ILO Governing Body adopted a Global Flagship Programme on Building Social
Protection Floors for All, as part of its overall Development Cooperation Strategy (2015-2017),
thus reinforcing the role of the ILO in promoting and supporting the development and
implementation of nationally defined social protection floors, as part of comprehensive
systems of social protection.
Among the 21 target countries of the ILO Global Flagship Programme on Building Social
Protection Floors for All, five are ASEAN Member States (Cambodia, Indonesia, Lao PDR,
Myanmar and Viet Nam); and the two focus countries of this flagship countries are target
countries.
As part of the ILO’s flagship programme on social protection, and in coordination with other
UN agencies, the ILO is developing a number of global tools and research products.
Box 3: ILO Flagship Programme on Social Protection Flo ors
This programme contributes to making social protection floors a national reality in countries whose social protection systems are fragmented or do not cover the entire population. It aims to improve social protection for the three-quarters of the world’s population which is not adequately covered at present and to help achieve SDG target 1.3 on creating social protection floors. The programme brings together governments, social partners, civil society organizations, social protection scheme administrators and the UN system in coordinated and comprehensive SPF interventions. These include carrying out assessments of social protection systems and schemes and providing recommendations to build nationally defined social protection floors. It supports the design of new schemes or reforms of existing schemes, as well as supporting their effective implementation and improving their operations. Country-level interventions are supported by a global campaign to raise awareness, educate policy-makers and ultimately establish universal social protection. Source: Based on ILO Governing Body, 325th Session, Geneva, 29 October–12 November 2015, Document GB.325/POL/7 Document http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_413765.pdf
15
The most relevant knowledge products for this project are:
− the global guide on how to draft social protection laws;
− the global guide on how to extend social protection to workers in the informal
economy and its link with the global initiative conducted by the ILO’s INWORK
department in this area; and
− the global guide on how to improve social services delivery.
The project makes use of these knowledge products and tools. At the same time the project’s
activities contribute to further developing these global knowledge products and tools, by
sharing experiences and practices developed in the region.
The global programme is also organizing the participation of the private sector and workers to
the development of social protection through the Global Business Network for Social
Protection Floors and the mobilizing workers’ support for SPFs initiative respectively. Both
initiatives will inform and contribute to the project when relevant. As part of the global
programme, a “Get in” communication campaign for promoting social protection is organized,
to which the present project will contribute (e.g. knowledge products developed by the
project will be spread through the “Get in” campaign).
Finally, the project will coordinate with headquarters for the use of the measurement and
monitoring tool that is developed as part of the global programme to further document the
short, medium and long term impacts of the ILO’s support for the extension of social
protection.
In particular, the project represents an opportunity to improve the global guide on how to
draft social protection laws, the global guide on how to extend social protection to workers in
the informal economy by learning from similar activities implemented at country-level. In
addition, the cost/benefit argument to convince employers and workers to participate in
social security schemes links with the work of Global Business Network for SPFs.
Through the flagship programme and its Global campaign on SPFs, the results and good
practices generated by the project are not only documented but also shared with other
countries worldwide beyond the ASEAN borders.
Box 4: ILO Global campaign for knowledge developmen t and sharing on social protection floors
The Flagship programme on SPFs includes an important component of knowledge development and sharing. The Global Campaign on Knowledge on SPFs comprises four areas of interventions: - Knowledge development: documentation of innovative country experiences, good practices guides, costing and impact assessment tools; - Knowledge sharing: through regional and global publications, the platform on social protection extension; - Multiplier effects: through global alliances with UN agencies and UNDG Secretariat, as well as other development partners, and South-South exchanges; and - Promotion and education: communication and awareness raising activities, policy positions, participation in major events to promote ILO’s approach; Source: Based on ILO Global flagship programme: Building social protection floors for all. http://www.social-protection.org/gimi/gess/RessourcePDF.action?ressource.ressourceId=51737
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The Sustainable Development Agenda by 2030
Furthermore, the Sustainable Development Goals (SDG), recently adopted by the United
Nations General Assembly, recognize the increasing importance of social protection to reduce
poverty and inequalities and achieve inclusive and sustainable development. Specifically, the
SDG 1 identifies the establishment of Social Protection Floors (SPFs) as a target (No. 1.3) to
eradicate poverty. Research and evidence have also shown the role of social protection in
achieving food security and eradicating hunger (SDG 2). SDG 3 acknowledges the role of social
protection in achieving health, while SDG 5 mentions social protection policies (No. 5.4) as
one of the tools to value unpaid care and domestic work to ultimately achieve gender equality
and women’s empowerment. Social protection is also accounted for in SDG 8, as it is one of
the four pillars of decent work. Finally, SDG 10 acknowledges the role of social protection in
reducing inequality.
These developments translate the momentum social protection has gained globally in the last
decades. The Social Protection Floor Initiative (SPF-I) launched by the United System Chief
Executives Board (UNCEB) in 2009 and the ILO Social Protection Floors Recommendation
adopted in 2012 have further prompted the UN-wide efforts to support countries to build and
maintain social protection floors and systems.
Project’s overall strategy
With this backdrop, the project promotes the implementation of nationally defined social
protection floors aiming at providing income security to vulnerable workers and those in
informal employment, and progressively covering them under more comprehensive social
security systems comprised of social insurance and social assistance schemes. Also, an
increased registration to social protection systems already constitutes an initial step towards
more formalization of the informal economy and definitely towards more protection of
informal economy workers.
The project’s strategy to extend social protection coverage is through tackling the low
enforcement of social security laws, in particular among the micro, small and medium
enterprises, self-employed and informal workers. In general, and in Indonesia and Viet Nam in
particular, social insurance laws and the institutional framework of social insurance
institutions are more adapted to the coverage of the formal economy. The project promotes
the extension of social security benefits for all through the search for innovative measures,
administrative “adaptations” and incentives to increase social insurance coverage among
informal economy workers and self-employed, towards higher level of social protection. The
project also intends to provide information and improve understanding of government
officials, but also as importantly, workers and employers’ representatives on social protection
issues to more actively engage in dialogues around social policy reforms and take informed
decisions.
Therefore, the overall objective of the project is to improve performance (e.g extension of
coverage and enforcement) of the social security systems in ASEAN, with a focus on Indonesia
and Viet Nam towards the implementation of nationally defined SPFs, and progressively more
comprehensive social security systems. By increasing participation to social protection
systems, also, the project also aims at providing better protection to and gradually formalizing
the situation of those working informally.
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A regional project with complementary country-level interventions
The project strategy builds on achievements, expertise and good practices generated over the
past five years of the ILO/Japan Project on Promoting and Building Social Protection. One of
the good practices of the past two phases is the strategy of “learning by implementing country
level - technical assistance and disseminating at regional level”. It brought credibility to the
project’s interventions at both national and regional levels.
Project’s strategy at the regional level and contribution to ASEAN Member States’
commitment to social protection
Extending social protection has been recognized as a priority for the ASEAN Member States in
major official documents (see section 1.2).
The Regional Framework and Action Plan to implement the Declaration on Strengthening
Social Protection20 includes the following priority action:
Advocate strategies that promote coverage, availability, comprehensiveness, quality,
equality, affordability and sustainability of various social protection services including:
a) Social insurance for informal workers: Where appropriate and allowing for domestic policy
consideration, provide for a mechanism so as to institute government subsidies/loans as an
incentive for to contribute to the voluntary social insurance system; or explore the possibility of
having a voluntary social insurance system if none was created
[…]
c) Explore measures to promote greater access to social protection programmes and services
d) Where appropriate, encourage the participation of workers’ organizations and employers’
organizations, and explore possible partnership with the civil society to raise awareness of and
better reach the informal workers
The ASEAN SLOM Work Programme (2016-2020), now being finalized, includes the following
key result:
4. Expanded social protection
Expansion of coverage of social protection to all workers
[…]
Expanding coverage of social insurance to informal sector
At the regional level, the project directly contributes to support these interventions, as ASEAN
Member States have already expressed interest in working with the ILO in this specific areas.
The project strategy consists in developing and disseminating knowledge, and facilitating
exchange of experiences and South-South cooperation across ASEAN countries. In that sense,
the project focuses on the following regional priority interventions:
20 http://www.asean.org/images/2015/November/27th-
summit/ASCC_documents/ASEAN%20Framework%20and%20Action%20Plan%20on%20Social%20ProtectionAdo
pted.pdf
18
1. Bringing evidence-base policy recommendations for extending coverage to informal
economy, MSMEs and self-employed workers in ASEAN, and exploring and exchanging good
practices for improving compliance of social security laws
The project proposes to conduct research and comparative review of countries that have
implemented voluntary extension of social insurance schemes to MSMEs; self-employed and
informal economy workers. The study explores country experiences (what works, what does
not work?) and analyses advantages and limits of voluntary schemes versus compulsory ones.
From this review, the project draws policy recommendations, lessons and good practices for
potential adaption to the ASAEN countries. For instance, Mongolia that has received the
support of the ILO/Japan Multi-bilateral programme over the past two years is now moving
away from voluntary to mandatory participation in social insurance. Such dynamic is also
aligned with the bi-dimensional approach of extending social security: universal coverage and
progressively higher level of benefits.
The project complements the research by a review of legal and operational practices aimed at
improving enforcement of social security legal framework, in particular compliance of social
insurance laws. Such practices encompass sanctions and penalties provisions and mechanisms
for their application, reinforcement of the role of social security inspection, implementation
arrangements for an increased enforcement among MSME, informal economy workers and
self-employed.
Country experiences, good practices and policy recommendations are documented (through
videos too), presented and discussed during an ASEAN tripartite seminar on extending
coverage and enforcement of social security (2018), and compiled in a research report.
Country experiences will also contribute to the Country Note Series "Social Protection in
Action: Building Social Protection Floors" developed at the global level. The series describes
successful experiences and innovative practices of countries in extending social protection
coverage to its people while highlighting good practices, challenges encountered and lessons
to be learned for other countries.
Among other experiences, the project documents and uses expertise of the Japan Federation
of Labour and Social Security Attorney Association. In Indonesia, preliminary discussions took
place between the Social Security and Labour Dispute Department of the Ministry of
Manpower and Transmigration, and the Association, agreeing on studying the feasibility and
proposing an eventual design for the adaptation of the Sharoushi system in Indonesia as a
mean to improve the enforcement of the social security laws (see box).
2. Building capacities of a pool of experts on extension of social security that can be deployed
across ASEAN Member States and Asia
Box 5: Sharoushi social security and labour inspection system in Jap an A Sharoushi (labour and social security attorney) is a legal system that contributes to the smooth enforcement of labour and social security laws as well as to the implementation of industrial relations for the protection of workers and growth of industries. The attorney provides counselling services to employers on staff management, labour and social security laws, dispute settlement through the Alternative Dispute Resolution (ADR) services, and foster industrial environment for decent work. Presently the Sharoushi system is being implemented in Japan and Republic of Korea. The system helps build awareness among employers, companies and workers on labour and social insurance laws and supports the governments by improving compliance at the workplaces and increasing social insurance application. Source: ILO/Japan multi-bilateral programme, review of internet sources.
19
The project organizes some training courses on issues related to the extension of social
security coverage. In addition, research work and technical assistance identify solid experts
available to be deployed for South-South cooperation. These experts are policy makers at the
government levels, key social partners directly engaged in social security reforms, researchers
and other actors advocating for strengthened social protection. The pool of experts is the first
beneficiaries of the executive courses on innovative strategies and practices to expand social
protection coverage. The course at the regional level will be developed in close coordination
with the development of the guide on how to extend social protection to workers in the
informal economy, and will also be adapted and used at the global level.
Project strategy at the country level and contribution to national socio-economic
development frameworks
Justification for the selection of country-level interventions
The selection of focus countries that receive additional support to expand social security
coverage through the project gave due consideration to regional and national priorities, as
well as donor’s recommendations. Among countries with already several years of social
security implementation (Indonesia, Malaysia, Philippines, Singapore, Thailand, Viet Nam),
Indonesia and Viet Nam have recently adopted major reforms mainly aimed at extended
coverage, respectively in 2015 and 2014. Among ASEAN countries that are still at the early
stage of implementing a broader social security system that will cover those outside civil
service (Cambodia, Lao PDR, Myanmar).Reforms in these two countries, Indonesia and Viet
Nam, respond to pressuring needs for extending and strengthening social protection.
The project proposes to focus its national intervention mainly on Indonesia and Viet Nam
It is worth noting that at both the regional and national levels, the project is part of an ILO’s
broader intervention for the extension of social protection floors and systems. Other
initiatives and technical assistance projects are available to support the extension of specific
guarantees such as health, short-term benefits and pension; development of social assistance
systems and targeted interventions to specific vulnerable groups (e.g. people with disability,
domestic workers, ethnic populations). The present project complements other direct
country support where resources are already confirmed either from ILO’s regular budget or
other sources (Myanmar, Viet Nam, Cambodia, Lao PDR, Philippines, Malaysia, and Thailand);
and other regional projects related to social protection:
- Asia-Pacific study on extending old-age pension for all;
- Asia-Pacific study on social protection extension to workers of the informal economy;
- ASEAN study on social protection of migrant workers; and
- ILO-FAO initiative to improve social protection, food security/nutrition, and rural
development.
Although social health protection is one of the priorities of the Governments of Viet Nam and
Indonesia and one the components of the nationally defined social protection floor, the
present project does not address issues related to the expansion of social health insurance in
these two countries. In Viet Nam, the social insurance scheme is not included under the SI Law
and is governed by a different institutional framework. In Indonesia, the social health
insurance scheme is governed by the National Social Security System Law but administered
under BPJS Kesehatan (Health). In addition, if the Project intervention would be extended to
20
more areas the lack of focus could lead to challenges to obtain results in the current time
frame. Meanwhile, the ILO will search complementary resources to work in that area, in
collaboration with other organizations already working in this are such as WHO, UNICEF,
UNAIDS, ADB and the World Bank.
Link to National Development Frameworks
The two countries have completed an assessment based national dialogue on social
protection (Viet Nam in 2011 and Indonesia in 2013) and explicitly committed to complete a
social protection floor in their respective country.
In each of the two countries, extension of social protection is included as outcome of the UN
Development Framework:
Indonesia Outcome 2: Equitable access to social services and social protection21
Viet Nam Outcome 2 (UN Focus Area 2): Access to quality essential services and social
protection
In Viet Nam,
The Party’s Resolution on some Social Policies, adopted in 2012, defines the overall social
protection strategy along the following four areas: social insurance, social assistance, active
labour market policies and social services. It adopts a life cycle approach to the provision of
social protection. Among the priorities areas, extending the coverage of social security
provisions, particularly to informal economy workers; improving the enforcement of the SI
Law and related regulatory framework are key elements of the reform. The recent reform of
the Social Insurance Law (in 2014) has introduced a number of amendments aimed at
expanding coverage through the inclusion of all employees with contracts of at least one
month of duration), increased voluntary participation among self-employed and workers with
atypical forms of labour, allowing for more flexibility in payment schedules, lowering the
minimum contributions, matching voluntary contributions and strengthened labour
inspection.22
In Indonesia,
The social security reform, entered into effect mid-2015, showcases the government’s
determination to increase social insurance coverage as an alternative to social assistance for
those self-employed and informal workers (Askesos programme) who have the capacity to
contribute. The Minister of Manpower and Transmigration has committed to the extension of
coverage among informal worker with subsidized contributions with the adoption of the
Decree No.24/MEN/VII/2006 on the guideline of technical procedure in implementing the
social security for the informal worker and the more recent Decree No.5/2013 on technical
guidance for the non wage-earners workers. In its recently issued National Medium-term
Development Plan (RPJMN 2015-2019), the government of Indonesia reaffirms its
commitment to reach universal coverage of the National Health Insurance Scheme by 2019.
Regarding the workers’ insurance schemes, the RPJMN targets 3.5 million informal sector
21 From Indonesia-UNPDF 2016-2020. Focus areas: Social protection, Reduce violence against women, youth and
children, Health, Maternal and infant mortality, Multi-sector response to malnutrition, Reproductive health and
family planning, HIV, Water and sanitation, Education and adolescent development 22 household workers; employees in agriculture, fishing, and salt production; civil servants; employees of
cooperatives and unions; police and military personnel; and as of 1 January 2018, part-time workers in
communes, wards and townships, and foreign citizens legally working in Vietnam.
21
workers (from a baseline of 1.3 million members in October 2014) and 62.4 million formal
sector workers (from a baseline of 29.5 million members in 2014).
Possible sectoral approach under the project
Traditionally, access to social security has focused on financing through workers’ and
employers’ contributions, possibly supplemented by governments. The design of most
contributory schemes rests on the assumption that workers are in an identifiable and
regulated relationship with his/her employers, and that it will be the case for most of the
working life. However, the portion of workers falling under this above category remains
limited in most of the ASEAN countries. Some economic sectors have also developed based on
a general trend to rely more and more on sub-contracting and outsourcing of the labour force,
including counting on individuals offering their services on a daily basis or paid by product. On
the other hand, the State also faces difficulties in extending social protection through
measures that are often targeting only at the poor. Therefore, the decrease in the role of the
employers and the State in providing social protection is problematic and calls for innovative
measures.
To define new and improve existing mechanisms to increase participation to the social
security systems workers of the informal economy, self-employed and MSMEs workers of one
specific sector, the project also looks at the value chain and the different actors involved,
among other possible approaches.
Box 6: Improved social protection through a value chain approach Value chain analysis can be used to reinforce social protection in a specific sector of the economy and then scale up experience to other sectors. A value chain analysis paths the entire chain of production of a commodity, identifying activities and actors at each stage of the production, from the raw material to the manufactured product. At each point along this chain, there are workers involved, in very different work statuses. A value chain analysis enables to reveal actors (workers and contractors, sellers and buyers) of this production chain that are often shadow and part of the informal economy. By identifying those involved, it allows to track bodies and agencies responsible for controlling the working conditions and applying labour and social security laws at each level of the chain. This approach has a singular advantage in that it mainstreams informal workers and informal enterprises into the entire production chain of a specific good. Through looking at different working arrangements, it can include workers with and without formal contracts, people running their own micro- and small-enterprises, home-based work, and all workers, including unpaid family members. For each of these groups, an analysis of the applicability of the social protection laws and implementation issues will bring to light areas for improvement of compliance. Source: F. Lund, Nicholson, 2003: Chains of production, ladders of protection: Social protection for workers in the informal economy (Durban, 2003, School of Development Studies, University of Natal)
22
For interventions at the country level, the project will discuss with the constituents of
Indonesia and Viet Nam the relevance of adopting a sectoral approach to the project’s
implementation in order to bring concrete evidence of what does and does not work. This
option could allow additional focus and facilitate the piloting of new practices. It would also
enhance focus in terms of social dialogue. The adoption of a sectoral approach and the
selection of the sector will be discussed during an inception phase, from January to June 2016.
Project’s interventions at national level
The project proposes a number of interventions aimed at advocating for extended social
protection coverage and higher level of benefits.
In order to contribute to the government’s objectives and support implementation of
government’s decisions to extend social security to all, the project proposed the following
strategy for intervention at the country level. It is to be noted that in Indonesia and Viet Nam,
the project starts with a six month inception phase to identify the relevance of a sectoral
approach with one or two sectors where the project’s intervention will have a larger impact.
It is worth noting that the project, as it was always the case during the past five years, ensures
coherence and complementarities with other ILO’s interventions in the area of social
protection independently of the source of funding, at both regional and national levels. For
instance, in the past, the project provided support to implement other activities related to
social protection funded by ILO/Japan bi-multilateral programme, including the ILO/Japan
Social Safety Net Fund and regional activities funded by the regular budget of the ILO ROAP.
Among other examples of synergies, in Viet Nam, the project activities are jointly
implemented with the One-UN fund project “Strengthening the performance of social
insurance system in Viet Nam through improved laws” (2015-2016). There is also a number of
project proposals in the pipeline for 2016-2017 that includes national interventions in the two
focus countries.
1. Providing policy advice and capacity building for the extension of social security coverage to
self-employed, informal and MSMEs workers
The project first assesses and analyses the target population social protection risks and needs,
protection gaps and the factors and obstacles that hinders the enforcement of social security
laws, policies and programmes. If the sectoral approach is retained by the project and its
implementation partners, a value chain analysis to identify social protection gaps will then be
conducted for one specific sector in Viet Nam and Indonesia.
Between March and November 2015, the ILO has conducted consultations in a number of
ASEAN countries, notably Viet Nam and Indonesia; social security stakeholders have
clearly reiterated that extending social security coverage to informal and small and
medium enterprises’ workers is the priority. Common approaches were shared by
different stakeholders, and only a combination of all these different measures will lead to
increased coverage:
1. advocating for policy/legal reform and incentives for extending coverage to all
workers, including informal workers, self-employed and MSME workers;
2. fostering enforcement mechanisms and role of social security inspectors for a
better compliance of social security laws; improving laws and regulations for
enforcement, including appealing mechanisms;
3. simplifying procedures for registration, payment of contribution, claim of
benefits, eventually using third parties; and
4. raising awareness on i) the benefits of social security through some cost/benefits
analysis of using private versus public systems, ii) existing systems and recent
reforms.
23
Based on the assessment (and eventually the value chain analysis in one specific sector), the
project discusses the feasibility and effectiveness of specific initiatives to increase social
security coverage. The review of possible options for extending coverage is based on
international labour standards and evidence-based analysis and country experiences where
reforms in this sense were gradually and successfully introduced.
2. Offering legal and advisory services for improving the enforcement of the social security law,
notably through an enhanced social security inspection
Viet Nam has recently reformed it Social Insurance Law (2014) and other related social
security laws (in particular unemployment insurance and employment injury insurance), and
Indonesia has taken action for accelerating the implementation of social security laws (a
number of Decrees adopted since 2011). The two countries are now at the stage of amending
and developing legal texts that will support the implementation and compliance of the
general laws. Improvement of the legal framework, mainly at the application level, should aim
at enhancing enforcement mechanisms by establishing clear and effective provisions for
registration, sanctions, and reinforcing the role of the social security inspection.
The project also contributes to reinforce social security inspection and, to a certain extent,
labour inspection/labour dispute settlement administration for issues related to social
security, in Indonesia and Viet Nam. The potential role of third parties, such as professional
associations, trade unions, or other type of institutions will also be assessed. In view of this
objective, in Indonesia, policy makers, technical staff and social partners study experiences of
different countries in this area and discuss possible adaptation to the country context and
challenges; the Japan Federation of Labour and Social Security Attorney Association
(Sharoushi) being one experience of possible interest.
3. Providing technical guidance and capacity building for streamlining procedures and delivery
mechanisms
Streamlined, simplified and, where needed, flexible registration and contribution procedures
are the backbone of the successful application of social security laws. Such procedure goes
hand-in-hand with an effective monitoring and evaluation information system of contributors
and beneficiaries.
With the new reform, the Government of Indonesia intends to merge the different social
insurance systems. This aspect of enforcement of social protection system and delivery of
services links to Bappenas on-going investigation to design and implement the Single Referral
System. The ILO, through the ILO/Japan social safety net fund, has already been supporting
Bappenas in exploring the best-suited approach since 2012. In a Single Referral System, labour
and social security counsellors could play a singular role in guiding and assisting employers
and employees in registering and paying contributions to the social insurance system.
In Viet Nam, further assessment of shortcomings in providing social security information and
services is needed to identify measures for simplifying procedures and improving reach out of
those not yet contributing to the VSS.
24
4. Supporting the development of awareness raising campaign and argument on benefits of
social protection and social insurance in particular
Often low compliance of social security laws directly results from a lack of information and
incorrect understanding of schemes and procedures. There is also often a distrust in public
institutions and lack of incentives to contribute for benefits that will received only in the
future when other households’ expenses are more pressuring. A starting point is the
development of a “social protection culture”, where everyone is convinced of the benefits and
returns of being covered under social security schemes, for themselves, their family and their
business. Also Viet Nam General Confederation of Labour asked to explore the feasibility of
introducing short-term benefits (maternity, sickness, working injury, unemployment) under
the voluntary scheme as an incentive to contribute to the social insurance system.
Based on country experiences, the project helps the government and social partners
developing large and targeted public awareness campaign through Public Social
Announcement (PSA), educational tools, large meetings among workers and employers,
among other possible initiatives. In parallel, the project supports the government, workers
and employers’ organizations in evidencing the benefits and returns of social protection and
social insurance in particular, for employees but also employer and business by bringing a
cost/benefits analysis in the debate, if relevant and requested by the project’s partners. The
on-going dynamic analysis conducted by Sangheon Lee and Nina Torm (2015) of the
correlation between increased social insurance and the performance of MSMEs in Viet Nam
offers a first element of discussion. Similar studies could be explored in other countries.
Link to ILO standards
The project has a clear mandate of giving effect to the Social Protection Floors
Recommendation, 2012 (No. 202) in the ASEAN countries. In addition, the project contributes
to expanding the influence of up-to-date ILO Conventions related to social security: the Social
security (Minimum Standards) Convention, 1952 (No. 102). The project also directly
contributes to the implementation of the Recommendation on the Transition from the
Informal to the Formal Economy, No. 204 (2015).
In this regard, all policy proposals and legal recommendations developed within the
framework of the project are based on the standards and principles laid down in these
Conventions and Recommendations, as well as other relevant international labour standards,
which ensures a sound design and good governance of the UI scheme. As Japan is the only
country in Asia which has ratified Convention No. 102, the present project further contributes
to the promotion of Convention No.102, by providing information on their principles and
minimum requirements.
Promoting social dialogue
The previous phases of the project (2010-2013 and 2014-2015) achieved to include employers
and workers’ organizations as partners of the implementation of the ASEAN Declaration on
Strengthening Social Protection. It is the result of the tripartite recommendations on
strengthening social protection, adopted on 18 November 2014, Bangkok, Thailand, and the
participation of the social partners in the ASEAN multi-sectoral meeting on social protection,
14-15 December 2014, Siem Reap, Cambodia, under the initiative of the past phases of the
25
ILO/Japan project. The Regional Framework and Plan of Action to implement the Declaration
refers to employers and workers’ organizations as co-implementers of 7 out of the 20
activities adopted. The project continues engaging tripartite consultation in the ASEAN-level
discussions on social protection, therefore promoting a better application of the principles of
the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144).
The ABND has proven in other countries to be a useful platform for Ministries, social partners,
UN agencies and civil society to collaborate in the field of social protection. Based on the
already established process, the project continues fostering participation of social partners.
The second phase of the ILO/Japan project (2014-2015) included tailor made activities for
workers and employers’ groups to actively engaged in the ASEAN agenda for the extension of
social protection. Research and position papers, specific training activities were organized
over the past few years. Such engagement continues over the third phase of the project.
Experience shows that the voice of representative from workers and MSMEs is essential to
understand the challenges faced in the extension of coverage to this specific group. The
design of solutions cannot be done without their direct participation from a very early stage.
Gender considerations
Across ASEAN Member States, female labour market participation rates vary from 44.5 per
cent in Malaysia to 78.7 per cent in Cambodia, with the regional average at 59.2 per cent23 in
2014 (ILO WESO, 2015). Non-participation in the labour market limits these women’s rights to
social security benefits to that of dependents or survivors in the event of the death of
breadwinner. This is an extremely precarious position in countries that lack non-contributory
benefit schemes. For women who do work, many engage in informal work such as unpaid
family work, domestic and caregiving work which are typically beyond the remit of national
social security laws.
In the case of maternity protection, gender discrimination also persists mainly due to
employer’s liability-based maternity benefits. Without social insurance coverage for maternity
benefit, employers may prefer not to hire women of childbearing age in order to evade the
costs of maternity allowances. Gender gaps also exists in pension coverage. Even with labour
market participation, gender differences in reproductive roles, lifetime average wages, length
of social contribution records, longer average life expectancy compared to men, and higher
engagement rate in the informal economy or unpaid work, limit access to adequate old-age
pensions. State-guaranteed old-age pensions, contributory and non-contributory, are
essential in achieving gender equality and provide better protection for women.
At each stage of the project, specific attention is given to address gender disparities.
Assessment and surveys to understand obstacles to social security participation, legal and
institutional recommendations for setting up new or improving existing mechanisms for
increasing social security compliance takes into account access to social benefits and services
of both men and women. In addition, special attention is paid to the analysis of whether
maternity and the unequal sharing of family responsibilities affect the accessibility of women
to social protection, and propose remedies.
23 The regional average of female labour participation rate has been weighted by the 2010 national labour force
(UN DESA, 2012).
26
The project ensures that awareness raising materials and media campaign are gender
sensitive and reach both male and female audience.
The project also attaches importance in promoting equal male and female participation to the
sub-regional capacity building and knowledge sharing activities.
2.2 ILO Capacity
At the global level, the ILO has a long standing experience with technical assistance for
extending social protection coverage. Recently, the ILO published a review of countries’
innovations in this area: F. Duran-Valverde at all., 2013: “Innovations in extending social
insurance coverage to independent workers: Experiences from Brazil, Cape Verde, Colombia,
Costa Rica, Ecuador, Philippines, France and Uruguay” (Geneva, ILO, 2013). The project counts
on the ILO expertise at the global level and in other regions of the world. In particular the ILO
is now developing a number of global tools, research products and campaigns that capitalize
on over 90 years of research, development cooperation and advisory services on social
protection. Such expertise translates in services to constituents for facilitating national
dialogue and providing advisory services for policy formulation and legal reforms; in
conducting actuarial, legal and institutional assessment studies for the design and reform of
schemes; in improving governance and delivery of social protection schemes; in promoting
and raising awareness on social protection; and in monitoring and evaluating performance
and impact of social protection interventions. The project makes use of this expertise. The
project also contributes directly to developing further global knowledge and tools as part of
the Global campaign on knowledge development and sharing of the Flagship Programme on
SPFS.
At the regional level, the project builds on over several years of close cooperation with the
ASEAN Member States on issues related to social protection. In particular, since 2011, notably
through the ILO/Japan Project “ Promoting and building social protection and employment
services in Asia”, the ILO has provided direct support to the development of the ASEAN
Declaration on Strengthening Social Protection (Brunei Darussalam, 2103) and its Regional
Framework and Plan of Action (Kuala Lumpur, 2015). More specifically, the ILO provided
inputs to the 7th ASEAN Senior Officials Meeting on Social Welfare and Development
(Bangkok, 2011), the 7th GO-NGO Forum on Social Welfare and Development (Hanoi, 2012).
Similarly, the 8th ASEAN Senior Labour Officials Meeting, in May 2012, noted the
Recommendations of the ILO-ASEAN tripartite seminar on unemployment protection (Ho Chi
Min City, 2012) which called for implementing nationally defined SPFs, and improving links
between social protection and employment promotion. As a result, a right-based approach,
the two dimensional extension strategy, and social protection floors are embedded in the
ASEAN Declaration.
Furthermore, the ASEAN Trade Unions’ Statement on Strengthening Social Protection (Phnom
Penh, 2014) and the evidence-based Employers’ position fed the Tripartite Recommendations
on Strengthening Social Protection (Bangkok, 2014) adopted at the ILO-ASEAN tripartite
seminar on social protection in Bangkok, November 2014. These Recommendations were
officially presented at the ASEAN Multi-sectoral bodies meeting for the drafting of the
Regional Framework and Plan of Action to implement the ASEAN Declaration on
Strengthening Social Protection, in Siem Reap, December 2014.
27
ILO is continuing providing technical support and inputs for the effective implementation of
the ASEAN Declaration and its Plan of Action both at national and regional levels. In particular
the ILO is contributing to the development of a monitoring framework to measure future
progress in extending social protection, in light of the Sustainable Development Agenda by
2013. In this sense, the ILO compiled the first report mapping comprehensively the state of
social protection in ASEAN in 201524, as baseline information to assess future progress in
extending social protection.
Moreover, ASEAN Governments and social partners have flagged out the need to improve
social protection to migrant workers as one of the key challenges posed by the integration of
the ASEAN Community. The ILO is currently supporting a review of social security and
migration laws in the ten ASEAN Member States, together with review of the implementation
issues and obstacles that hinder migrant workers’ access to social protection.
At the national level, since 2011, the ILO, including through the ILO/Japan multi-bilateral
programme, has supported directly social security law and institutional reforms in different
Asian countries. In the two countries, the ILO facilitated the United Nations Social Protection
Groups to support the government in the conduct of the assessment based national dialogue
on social protection (ABND). Each national process reinforced the ILO’s comparative
advantage as a facilitator of national dialogue on social issues.
In Viet Nam, the ILO has built a solid relationship with MOLISA and in particular the Social
Insurance Division and Bureau of Employment over the years. One major achievement of the
ILO’s support is the improvement and enforcement of the unemployment insurance system of
Viet Nam with the adoption of a new Law in November 2013. The following year, the
Parliament reformed the Social Insurance Law, after two years of ILO’s legal services and an
in-depth actuarial assessment in particular for the old-age, disability and survivors’ pension.
The ILO is now providing advisory services for the implementation of the reformed Law, with
resources from the One UN Fund until December 201625. The project also links efforts to
strengthen capacity of social security and labour inspectors to the on-going project Support to
Development in Industrial Relations, Wage Fixing, and Labour Law Implementation Institutions and
Capacity in Viet Nam (2012-2016).
In Indonesia, the ILO is now completing an actuarial study of the new pension scheme to
assess its financial sustainability and formulate recommendations regarding the scheme’s
adequacy and future adjustments. In 2012, ILO supported Indonesia in assessing its social
security laws against the requirements of the Convention No.102.
Finally, the ILO/Japan multi-bilateral programme has also supported the extension of social
protection through improved delivery services in ASEAN. Technical assistance focused on
Cambodia and Indonesia where the government has recognized the importance of better
coordinating the implementation of social protection programmes, and piloted the single
24 C.B. Ong, C. Peyron Bista, 2015: The state of social protection in ASEAN at the dawn of the integration
(Bangkok, ILO, 2015). 25 Strengthening the performance of the social insurance system in Viet Nam through improved
legislation and legal framework for social insurance, funded by One UN Fund for Viet Nam (2015-2016)
28
window services approach in these two countries. These regional experiences and lessons
learnt, from these two countries and many others, are now being compiled in a Good
Practices Guide on the Single Window Services that will be available from January 2016. The
project uses those experiences and knowledge to continue supporting Indonesia in
establishing its Single Referral System.
Therefore, in ASEAN, and in the two countries too, the ILO can count on a solid and long-
standing relationship with respectively, MOLISA, MOM and Bappenas, as well as social
partners, years on the specific topic of social protection. The project scales up on-going
projects in Indonesia and Viet Nam, and contribute to reinforce other ILO’s projects in the
other ASEAN countries.
2.3 Lessons Learned
The recent tripartite meeting on enhancing social protection in an integrated ASEAN
Community, 25-26 November 2015, Jakarta, Malaysia, the recent adoption of the Regional
Framework and Plan of Action stress out again the need for technical assistance and advisory
services to respond to pressuring needs for reforms and extension of social protection across
at least eight ASEAN countries. However, past years of technical assistance demonstrated that
limited resources and timeframe are unlikely to achieve tangible and sustainable results.
Reform and development of social protection systems often represent decades of investment
in social dialogue and capacity building, before actually witnessing any changes.
The ILO/Japan project’s experience in supporting engagement of social partners in ASEAN
consultative process revealed the challenges of maintaining similar level of information and
understanding among social partners and governments. In addition, certain ASEAN
consultative meetings are not meant to be tripartite although discussing labour and social
protection issues, which challenge the tripartite nature of the regional discussions.
The ABND completed in Viet Nam, Thailand and Indonesia have shown that this highly
consultative process requires a leader among the government to carry out the activities, to
access data and statistics and also obtain endorsement of the report at high policy-making
level. In Indonesia, the ABND was launched by the Ministry of Planning (Bappenas), an entity
directly reporting to the Prime Minister; and in Thailand, the report was launched by the
Prime Minister’s office.
The first phase of the ILO/Japan-ASEAN project focusing on unemployment insurance and
employment services, as well as workers’ reaction following recent pension reforms in
Indonesia and Viet Nam, reminded that a proper communication of the objectives of social
insurance policies will ensure workers’ understanding of the benefits of social insurance
transfers and increase trust in the public social security institutions.
2.4 The Logical Framework
2.4.1 Development Objective
The project aims at increasing social security coverage by improving application of social
security laws.
29
Link to ILO Programme and Budget, Decent Work Country Programme, and Country
Programme Outcomes
Extending social security and implementing social protection floors is one of the key priorities
of the ILO and the ILO Regional Office for Asia Pacific today.26
Outcome 03 - Creating and extending social protection floors
The ILO will provide support to constituents in the framework of DWCPs within the
following five areas of action: a social protection floors advocacy campaign; policy
knowledge products; advisory services and capacity building; national social dialogue; and
building and strengthening partnerships. Work will focus on:
- scaling-up national social protection schemes and programmes through technical
advisory services with regard to design, costing, fiscal space options and efficient
delivery systems;
- supporting the extension of social protection to the informal economy and rural
areas, and to cover migrant and domestic workers;
- working jointly with international partners and national constituents on universal
health coverage and social protection systems, including long-term care in ageing
societies;
- facilitating national and regional social dialogue to ensure that economic policy-
making adequately considers social protection needs;
- monitoring social security reforms, including reforms of pension systems, and
providing advice to ensure the adequacy of benefits and coverage;
- being a global advocate of social protection, forging alliances and bringing together
key partners to ensure that social protection is central to the implementation of the
post-2015 development agenda.
Source: ILO Programme and Budget proposal 2016-2017, paragraph 71.
The project embeds the means of action proposed in the Programme and Budget 2016-2017
to pursue its objective of extending social security coverage in the ASEAN countries.
In addition to outcome 3, the project also contributes to Outcome 6 on facilitating transition
from the informal to the formal economy.
Outcome 06 – Formalization of the informal economy
26 It was included in the Conclusions of the 15th Asia Pacific Regional Meeting, held in Tokyo, in December 2011.
30
Depending on country needs, support will be provided to:
- extend the scope of and improve compliance with laws and regulations, including
through measures such as simplifying registration procedures and the provision of
incentives to comply;
- assess the enabling environment for sustainable enterprise to identify barriers to
formalization and formulate policy recommendations to overcome them;
- revise national employment policy frameworks with a view to making the
formalization of employment a central goal;
- extend social protection to categories of workers who are currently not covered.
Source: ILO Programme and Budget proposal 2016-2017, paragraph 103.
Looking at formalization through the angle of social protection, the project provides to
constituents the support listed above.
The project is part of the Global flagship programme: building social protection floors for all.
In addition to regional interventions, the project conducts complementary activities in two
countries that have been included under the Flagship programme. More specifically, it
contributes to the achievement of the third expected results of the Programme:
3. Improving existing social protection schemes
The ILO is currently involved with improving social protection schemes in 29 countries
through strengthening administration, developing management information systems and
establishing single window services, which are decentralized access points to a variety of
benefits and services. Capacities to administer and monitor social protection schemes, as
well as to conduct periodic actuarial valuations, are also being strengthened.
Source: ILO Global flagship programme: Building social protection floors for all http://www.social-protection.org/gimi/gess/RessourcePDF.action?ressource.ressourceId=51737
The intervention of the project (i.e building capacities and facilitating exchange of experiences
and technical knowhow) contributes to achieving the following regional outcome:
RAS 126: Increased knowledge and capacity in the region to promote coherent policies in
support of decent work for all women and men.
Although the project has a sub-regional dimension, Indonesia and Vietnam receives direct
technical assistance to extend social protection coverage. The project’s intervention
contributes directly to the achievement of the following respective CPOs that have been
raised as target priority or pipeline for the biennium 2016-2017:
Code Title/Description
P&B
Outcome 3
Creating and extending social protection floors
31
IDN 103 -
target
Government and social partners have greater capacity in designing and
implementing social protection policies and programmes.
VNM 151 -
target
Strengthened national capacities and knowledge base for the effective
implementation of social security policies and strategies
Indicator 3.3 Member States that have set up new programmes or improved the existing ones
that contribute to extending social protection coverage or improving benefit
adequacy.
Results criteria
Reportable results must meet one or more of the following criteria:
1. Government develops new or revises existing social protection programmes,
which can be either contributory or non-contributory, that extend coverage of social
protection.
2. Government designs, revises or implements regulations that improve benefit
adequacy in contributory and non-contributory social protection programmes.
Means of verification
Published government reports; Official Gazette; ministry policies and reports;
internal ILO reports; monitoring and evaluation reports of social protection
programmes; social security inquiry database.
Also by increasing participation to social security systems, the project contributes to the
achievement of outcome 6, as a secondary outcome, and in particular indicator 6.1.
Outcome 6 Formalization of the informal economy
Indicator 6.1 Member States that have updated their legal, policy or strategic frameworks to
facilitate the transition to formality.
Results criteria
Reportable results must meet one or more of the following criteria:
1. Government, in consultation with social partners, develops or revises
policies and programmes in the areas of employment, enterprises, social
protection or labour compliance facilitating the transition to formality.
2. Government, in consultation with social partners, develops or revises laws
and regulations to extend legal coverage and protection to categories of
workers and economic units previously uncovered.
3. Government, in consultation with social partners, develops or revises
national strategies or action plans facilitating the transition to formality across the
economy
Means of verification
Official Gazette; annual reports of government bodies; intergovernmental
official documents; tripartite agreements
2.4.2 Immediate Objectives / Outcomes
Immediate objective 1: Knowledge and expertise are increased among ASEAN Member States
to extend social protection to all and as a result, measures are proposed at national level to
extend social security coverage in ASEAN, emphasizing on self-employed, informal and
MSMEs workers.
32
Immediate objective 2: More workers are covered by social security schemes, through
improved policy, legal framework, and enforcement and delivery mechanisms in Viet Nam.
Immediate objective 3: More workers are covered by social security schemes, through
improved implementation arrangements, enforcement measures and support services in
Indonesia.
2.4.3 Outputs and activities
Immediate objective 1: Knowledge and expertise are increased among ASEAN Member
States to extend social protection to all and as a result, measures are proposed at national
level to extend social security coverage in ASEAN, emphasizing on self-employed, informal
and MSMEs workers.
Output 1.1: Knowledge and expertise on strategies and practices to improve coverage of self-
employed, informal and MSMEs workers, and compliance of social security laws
- Activity 1.1.1: Support, coordinate with and report to the Tripartite Project Committee
and ASEAN SLOM and SOMSWD;
- Activity 1.1.2: Conduct research on country experiences extending coverage to self-
employed, informal economy and MSMEs workers, including enforcement
mechanisms, draw lessons learnt and recommendations for possible application in
ASEAN and worldwide through the multiplier effect of the Flagship Programme on
SPFs (see box 4) ; this activity also contributes to the development of the guide the
global campaign (by INWORK) on the extension of social protection to workers of the
informal economy;
- Activity 1.1.3: Organize a tripartite ASEAN seminar to present the country experiences,
discuss the lessons learnt and recommendations for ASEAN (at mid-term of the project
implementation);
Output 1.2: Capacity of ASEAN policy makers, practitioners and social partners to design and
implement social protection policies strengthened and pool and experts are available to be
deployed for South-South cooperation
- Activity 1.2.1: Train key stakeholders among the Ministries, social security offices, and
research institutes of selected countries on measures for improving social security
coverage (design, enforcement, institutional arrangements).
- Activity 1.2.2: Improve capacity and knowledge of workers and employers’
organizations to better engage in policy discussions and decisions for reforming social
protection.
Immediate objective 2: More workers are covered by social security schemes, through
improved policy, legal framework, and enforcement and delivery mechanisms in Viet Nam.
Output 2.1: Analysis of impediments and recommendations for extending social insurance
coverage (review of legal/design and implementation aspects)
33
- Activity 2.1.1: Establish a tripartite project steering committee (building on the one of
the ILO project on social insurance) and organize regular meetings to discuss progress
and orientation of the project; as well as meetings with National Assembly when
needed; Discuss with the tripartite committee the relevance of a sectoral approach to
the project;
- Activity 2.1.2: Conduct a legal and institutional assessment (including governance
gaps), analysis of social protection risks, needs and obstacles in particular among
informal economy and MSMEs workers, short-term contract workers, and self-
employed; a value chain for identifying social protection gaps in one specific sector (if
relevant); and bring international experiences and evidence based recommendations,
policy options and institutional reforms for increasing social insurance coverage in Viet
Nam (with gender considerations); this activity may contribute to the development of
the guide the global campaign (by INWORK) on the extension of social protection to
workers of the informal economy;
- Activity 2.1.3: After two years of implementation of the reformed social insurance
laws, conduct an evaluation of the impact of the recently reformed social security laws
on the level of coverage; lessons learnt from this activity may nourish the global
measurement and monitoring tool developed under the Flagship Programme on SPFs;
- Activity 2.1.4: Conduct assessment of the financial sustainability of the funds, including
in view of extending social security coverage (population and benefits); the assessment
looks at gender considerations;
- Activity 2.1.5: Conduct separate consultations and tripartite workshops for identifying
gaps and recommendations for improving social insurance coverage. The workshops
disseminate and discuss the findings of the review of country experiences (act. 1.1.1).
In particular, the project explores barriers in the institutional set-up that hamper
effective implementation of social security laws.
Output 2.2: Improved policy and legal frameworks for a better enforcement of the social
security laws
- Activity 2.2.1: Support the government to improve policy framework, draft
amendments to legal texts, in particular texts for the implementation of the voluntary
scheme, based on ILO social security standards and international experiences;
Output 2.3: Enhanced functions and capacity of social insurance/labour inspection
- Activity 2.3.1: Based on the recommendations of the legal and institutional assessment
(including governance gaps), training needs assessment, and review of international
experiences, identify strategies, measures and propose legal and institutional
amendments for the reinforcement of the role of and linkages between social
insurance, social assistance and labour inspection, if relevant in one proposed sector of
the economy;
Output 2.4: Support to Viet Nam Social Security for public administration reforms
(streamlining procedures and services for social insurance registration, payment of
contributions, benefits claims and appeals), if relevant in one proposed sector of the economy
- Activity 2.4.1: Support the design of new mechanisms and tools for streamlined social
34
insurance procedures and services.
Output 2.5: Awareness and understanding raised on benefits of social security and rights and
obligations of employers and workers
- Activity 2.5.1. Conduct and discuss among workers and employers’ organizations a
cost/benefits and return analysis of social protection to convince employers and
workers on the benefits of contributing to social insurance;
- Activity 2.5.2: Guide employers and workers’ organizations in the preparation of
awareness material; this activities together with 2.5.1 may contribute to the global
campaign to mobilize workers’ support to SPFs, Get In global campaign and the Global
Business Network.
Immediate objective 3: More workers are covered by social security schemes, through
improved implementation arrangements, enforcement measures and support services in
Indonesia.
Output 3.1: Analysis of impediments and evidence-based recommendations for extending
social insurance coverage (review of legal/design and implementation aspects)
- Activity 3.1.1: Constitute a tripartite project steering committee and organize regular
meetings to discuss progress and orientation of the project;
- Activity 3.1.2: Conduct a legal and institutional assessment; analysis of social
protection risks, needs and obstacles in particular among informal economy and
MSMEs workers, short-term contract workers, and self-employed; value chain analysis
for identifying social protection gaps in one sector (if relevant); and bring evidence
based recommendations, policy options and institutional reforms for increasing social
insurance coverage in Indonesia (with gender considerations); this activity may
contribute to the development of the guide the global campaign (by INWORK) on the
extension of social protection to workers of the informal economy;
- Activity 3.1.3: Conduct separate consultations and tripartite workshops for identifying
gaps and recommendations for improving social insurance coverage. The workshops
disseminate and discuss the findings of the review of country experiences (act. 1.1.1).
If relevant, the tripartite workshop may invite resource persons from Japan to share
their experience with regards social security inspection and labour dispute settlement
administration.
Output 3.2: Enhanced role of the social security inspection, learning from different countries’
experiences including the Sharoushi system of Japan.
- Activity 3.2.1: Based on the recommendations of the legal and institutional
assessment, training needs assessment, and review of international experiences,
identify strategies, measures and propose legal and institutional amendments for the
reinforcement of the role of and linkages between social insurance, social assistance
and labour inspection, if relevant in one proposed sector of the economy;
35
Output 3.3: Support to PBJS-Employment for streamlining procedures and services for social
insurance registration, payment of contributions, benefits claims and appeals, if relevant in
one proposed sector of the economy.
- Activity 3.3.1: Support the design of new mechanisms and tools for streamlined social
insurance procedures and services.
Output 3.4: Awareness and understanding raised on benefits of social security and rights and
obligations of employers and workers
- Activity 3.4.1. Conduct and discuss among workers and employers’ organizations a
cost/benefits and return analysis of social protection to convince employers and
workers on the benefits of contributing to social insurance;
- Activity 3.4.2: Guide employers and workers’ organizations in the preparation of
awareness material; this activities and 2.5.1 may contribute to the global campaign to
mobilize workers’ support to SPFs, Get In global campaign and the Global Business
Network.
2.4.4 Indicators
A set of qualitative and quantitative indicators have been established for the immediate
objectives and outputs in the project’s logical framework (Annex A) as attached. Indicators
are of two types, at immediate objectives level and at activities level. The first type of
indicators intends to measure the impact of the project at the policy level. However, it is
difficult to measure to what extend the project will have a direct impact on national
consensus and policy formulation, as many other factors will also interfere. In addition,
only partial impact on social security coverage can be measured within the time frame of
the project. Very often extension of social security coverage manifest after few years of
introducing new reforms and mechanisms. Similarly, measuring durable progress in
reducing informal economy requires a longer period than three years. On the other hand,
the activity indicators as presented in the logical framework measure timely and regularity
of services delivery, quality of services, inclusiveness of targeted vulnerable groups across
the four components contributing to the development objective of the project.
Measurement of the impact of the project is also to be placed within the forthcoming set
of indicators to measure achievement of the Sustainable Development Goals, the on-going
discussion among the ASEAN Member States to develop a monitoring framework for
measuring implementation of the ASEAN Declaration on Strengthening Social Protection,
and the development of a measurement tool to monitor impact of the ILO global flagship
programmes on SPFs.
2.4.5 Assumptions and Risk Analysis
At the regional level, the project mainly consists of facilitating knowledge sharing and South-
South cooperation, and building capacities in order to promote and support the development
and implementation of nationally defined social protection floors and systems, in particular
for the working age group and elderly. The main risk linked to the first component of the
project is that capacity building activities are not translated into concrete actions for the
design of schemes and policies. To prevent such risk, the project balances regional seminars
36
with a number of targeted training activities, experts’ visits and South-South experts’ mission
responding to specific needs of selected countries.
At the country level, in Viet Nam, the project is in line with the clearly expressed political will
to review social security policy and implementation procedures in order to expand coverage,
notably among informal, self-employed and SMEs workers. The project has been designed in
close collaboration with the relevant Vietnamese stakeholders, notably through consultations
with MOLISA, VSS, social partners and relevant development partners. The anticipated strong
ownership of the national counterparts in connection is thus the best advantage of this
project for achieving the objectives. On the other hand, it is already foreseen that resources
offered by this grant are too limited to enable policy changes, reform of the implementation
measures and proper capacity development; therefore the project will have to create
synergies with other ILO projects in similar areas:
- Strengthening the performance of the social insurance system in Viet Nam through improved
legislation and legal framework for social insurance, funded by One UN Fund for Viet Nam
(2015-2016);
- Support to Development in Industrial Relations, Wage Fixing, and Labour Law
Implementation Institutions and Capacity in Viet Nam (2012-2016).
In Indonesia, many actors are involved in social protection, both at policy and implementation
level. One major challenge of the project is to identify key partners and build alliances in order
to optimize the project intervention, and ensure no duplication with work carried by other
institutions. In addition, in Indonesia, the Ministry of Social Development and Culture and
Bappenas have already established contact with the Japanese Social Security and Labour
Attorney Association (Sharoushi system) as a possible strategy for expanding social security
coverage. The project carefully assesses the feasibility of adapting the Sharoushi system to the
Indonesian context, as labour market features, legal and policy frameworks, are institutional
capacities in Indonesia are very different from Japan. Finally, resources for creating systemic
changes and initiating visible impact on social security coverage are limited under this project.
The project builds synergies and cost share activities with other on-going initiatives in related
areas in Indonesia:
- Inclusive Growth through sharing good practices of GBA, OSH and IR projects (InSIGHT)
The project duration is 1 April 2015 - 31 March 2018.
The budget of the project is negotiated with the donor and confirmed on a yearly basis. As a
result, one of the major risks anticipated for this project is a decrease in the budget allocation
foreseen for 2017 and 2018. An annual review of project risks and assumptions is conducted,
the results are included in the Project’s annual progress report and are discussed with the
Country Offices and implementing partners, for eventual adjustment of the logical framework
and workplan.
The summary of assumptions and risks is in the table below:
Assumption Likeliho
od
(H/M/L)
Importan
ce
(H/M/L)
Risk level
(R/Y/G)
Mitigation measures
Sustainability assumptions
37
Governments are
committed to maintain
and reinforce their
efforts to expand social
protection floors and
systems, as part also of
their strategy to achieve
the SDGs.
L H Green Capacity building and awareness
raising among policy makers and
social partners to keep social
protection floors and systems
among the government’s
priorities, even if government
changes.
Governments and social
partners are committed
to address needs and
challenges of the
informal economy
L M Green Capacity building and awareness
raising among policy makers and
social partners to ensure that
decent work to informal
economy remains a country
priority
Social protection remains
a key priority of the
ASEAN integration
agenda.
L H Green Continuous support to ASEAN
consultation mechanisms in the
area of social protection.
Training and South-South
cooperation are
sustained beyond the
end of the project
M M Yellow Concluding MOU and
partnerships with University,
institutes, strengthening an
ASEAN network of experts on
social protection
Development assumptions
Awareness and capacity
are increased among
policy makers across
ASEAN countries and
lead to informed policy
changes
L M Yellow Activities need to be carefully
designed and focus to respond to
the needs for information and
training.
Governments in Viet
Nam and Indonesia
continue implementing
the endorsed policy and
approved legislation on
social security after
completion of the
project.
L M Green Balanced approach to involve
policy makers and practitioners
both at the local and central
levels throughout the project
implementation.
Awareness on the
benefits of social
protection among target
workers in Viet Nam and
Indonesia is increased,
that translates in an
increase in social
insurance participation
M M Yellow Tools, message and support of
the information sessions are very
well adapted to the target
population.
Implementation assumptions
38
Governments, workers’
and employers’
institutions nominate key
persons to attend the KS
and training activities
that are in a position to
initiate changes in their
country
L H Yellow Request continuity of
participation and technical
competence of persons
nominated to represent key
institutions.
Government and other
implementation partners
provide necessary
support to the project
activities to ensure
smooth and timely
implementation.
L M Green Consultant and agree with the
MOLISA (VSS) and MOM (BPJS)
on a clear work-plan that also
takes into considerations
implementation of other
development projects.
Good communication is
maintained for
cooperation between the
different stakeholders
involved
L H Yellow Promote the communication
between different ministries and
government agencies, as well as
with social partners.
Management assumptions
Staff is committed to
deliver timely assistance
during project
implementation, given
the large number of
activities.
L H Yellow Select carefully national officers
and consultants, expand
networks of consultants.
Motivate staff through
recognition of efforts and staff
development opportunities.
Adequate technical
resources are available,
given the important
objective and number of
activities of the project.
L H Yellow Continue resource mobilization
in Viet Nam and Indonesia.
3. INSTITUTIONAL FRAMEWORK AND MANAGEMENT ARRANGEMENTS
3.1 Institutional Framework
The ILO is designated as the executing agency responsible to oversee the technical and
administrative aspects of the project implementation. This includes supervision of the
policy recommendations and other project outputs to ensure their conformity with the ILO
Conventions and Recommendations.
The project is under the overall responsibility of the ILO Regional Office for Asia and the
Pacific based in Bangkok. The Social Security Specialist of the ILO DWT in Bangkok provides
technical backstopping. ILO Office for Viet Nam in Hanoi and the ILO Office for Indonesia
and the Timor-Leste in Jakarta are the collaborating units. The project receives technical
support from the Social Protection Department (SOCPRO) in Geneva, in the framework of
the Flagship Programme on SPFs, and INWORK programme to ensure a close coordination
39
with global initiatives aimed at extending social protection among workers of the informal
economy.
In addition, the project closely coordinates the activities with the Labour Inspection
Specialist, Workers’ activities and Employers’ Activities Specialists of the ILO DWT in
Bangkok.
At the ASEAN level, the project continues being implemented by the Tripartite Project
Advisory Committee (TPAC) that discusses the progress of the project’s implementation
and activities in the pipeline. The TPAC comprises four permanent members, and two
observers:
• a representative of the ASEAN Trade Unions Council (ATUC);
• a representative of ASEAN Confederation of Employers (ACE);
• the chair of SLOM for each specific year;
• the chair of SOMSWD for each specific year; and
• the Chief Technical Advisor of the project.
The PAC meets on a yearly basis, back-to-back with the ILO-ASEAN seminar27.
In addition, the project continues informing the ASEAN SLOM via the ASEAN-ILO/Japan
Multi-bilateral Programme Coordination Committee, and SOMSWD on a yearly basis.
In Viet Nam, the project is implemented by a national Tripartite Steering Committee. This
Committee builds on the existing Tripartite Steering Committee established in 2011 during
the first phase of the ILO/Japan project and then maintained to continue implementing
ILO-supported activities on social security. The Committee is composed of permanent
representatives of MOLISA (Social Insurance Division), VSS, VGCL and VCCI meet every six
months for regular update and discussion on the project’s outputs. The Committee also
meets on exceptional basis when needs arise.
In Indonesia, the project team establishes a national tripartite Project Steering Committee
in charge of social security issues. It is proposed that representatives of Ministry of
Manpower and Transmigration, (Social Security and Labour Inspection Departments),
Ministry of Social Affairs, National Social Security Council (DJSN), State Ministry of National
Development Planning (Bappenas), APINDO and unions’ representatives constitute the
permanent members of this committee. The Committee meets every six months for
regular update and discussion on the project’s outputs. The Committee also meets on
exceptional basis when needs arise.
3.2 Management Arrangements
The project recruits the following officers, where appropriate within the limit of the
budget approved by the donor:
One Chief Technical Advisor (CTA) in ILO/ROAP. He/she is in charge of the daily
management of the project, of the direct implementation and / or supervision of
most activities. He/she supervises consultants (hired for specific research tasks);
he/she backstops the activities in Viet Nam and Indonesia, provides technical
inputs, and supervises the two national project coordinators (NPC) and the national
27 In 2016, the ILO-ASEAN Seminar is organized and funded by the ILO/Japan MAPS project.
40
technical officer. He/she is responsible for the technical reporting to all parties
involved;
One Administrative and Programme Assistant in ILO/ROAP. He/she is responsible
for monitoring the budget commitments and expenses, preparing supporting
document to process financial operations, issue external collaborators’ contracts
and services contracts, supporting publications of report and studies, organizing
workshops and missions, among other tasks.
One full time National Project Coordinator (NPC) in Hanoi Office and one full time
NPC in Jakarta Office: Each NPC is in charge of project implementation overall on a
daily basis and also providing technical expertise in social protection. He/She
represents the project in meetings with Government, social partners, and
development partners, at the demand of the country office. NPC is in charge of the
reporting of the project’s implementation and visibility of the project in his/her
respective country.
One part-time (50 per cent) Administrative Assistant in Hanoi Office and Jakarta
Office: each administrative assistant provides all the administrative support
required in the project, including preparation of contracts, recording of the project
budget expenditures and support for incoming missions by ILO staff and
consultants, as requested by NPC and CTA.
The project also counts with technical inputs by a pool of international and national
consultants for specific tasks. The Social Security Specialist of the ILO Decent Work Team
(DWT) in Bangkok provides technical backstopping. Certain project’s outputs mainly in the
legal and actuarial areas, are prepared in close collaboration with the SOCPRO Department
in Geneva.
4. SUSTAINABILITY
The project approach and strategy assure sustainability and ownership of the project by
the ASEAN secretariat on the one hand, by Indonesia and Viet Nam’s stakeholders on the
other hand. More specifically the following measures ensure that the project results are
sustained after termination of the project.
At the regional level:
The project pursues the development of the regional knowledge base on social protection
policies and schemes. It also builds capacities in various ASEAN countries and within
ASEAN secretariat so that there exist technical experts able to use this knowledge after the
termination of the project and to provide awareness raising and technical support to
countries willing to develop strategies and social protection schemes.
At the national level:
Project activities are embedded in local partners’ institutions with a view to ensuring local
ownership and sustainability, as well as capacity building of officials of the partner
organizations.
41
With the governments’ ownership of the project activities and the use of the project
results in reinforcing their work beyond the project period, the project produces practical
manuals and guidelines for the relevant officials to use the project results, including self-
training material for policy makers, social security staff, labour and social security
inspectors. These manuals and guidelines also support the government in its efforts to
replicate the project interventions outside the project pilot sectors and beyond the project
period.
Finally, all knowledge created and cumulated by the project will be posted on a public on-
line platform, the social protection platform (see 6. Knowledge Management and sharing).
5. MONITORING AND EVALUATION
The ILO undertakes both technical and financial review of the project at different stages of
its execution. For its technical cooperation projects, the ILO has established procedures for
planning, monitoring, reporting and evaluation. The ILO works with ASEAN Secretariat at
the regional level and with Ministries of Labour, Social Welfare and Social Security
institutions in Viet Nam and Indonesia for effective reporting, monitoring and evaluation
of the project and ensure its conformity referring to the current regulations and
requirements of the different countries involved and the donor.
Monitoring of the project and evaluation of its impact are also to be placed within the on-
going work conducted at the global and regional levels. In particular, the monitoring,
performance and evaluation indicators of the project link to the forthcoming set of SDGs
indicators, the being-discussed targets and indicators of the ASEAN monitoring framework
for measuring implementation of the ASEAN Declaration on Strengthening Social
Protection, and the development of a measurement tool to monitor impact of the ILO
Flagship programmes on SPFs.
At the start of the project, the project goals and objectives, project’s work-plan as well as
activities and indicators against which the project activities are measured and agreed upon
with implementing partners (ASEAN secretariat, SLOM, SOMSWD, ATUC, ACE, and national
partners (see Institutional framework)) and the donor.
The ILO will issue progress reports to the donor on an annual basis. Technical sections of
these reports features status of project implementation, achievements according to
indicators and targets. The financial sections sums project commitments and expenditures
following the accepted project budget. These reports specify any problems encountered
and propose corrective actions if needed.
The project is also subject to self-midterm review (after 18 months of implementation)
and final independent evaluation with the first such review to take place after 36 months
of implementation and the final one four months before the scheduled termination date
of the project.
The purpose of these reviews is to assess the progress achieved with project
implementation against project objectives and performance indicators adopted, and to
identify and address any major obstacles that may arise. Terms of reference for the
42
reviews should be prepared at least 3 months before the reviews are scheduled to take
place.
All these reports are prepared by the National Project Coordinator and the Chief Technical
Advisor, in close collaboration with the ASEAN secretariat and national Project Steering
Committees.
6. KNOWLEDGE SHARING AND COMMUNICATION
The project creates and disseminates knowledge and build capacities at ASEAN and
national levels.
Knowledge creation and dissemination
At the regional level the project produces and organizes inventories, case studies,
research, videos, technical guidelines, awareness raising seminars and disseminate
knowledge through publications, workshops and a knowledge sharing platform:
http://www.social-protection.org/gimi/gess/ShowProject.action?id=1385
More specifically, the project works closely with the Social Security Senior Specialist of the
DWT-Bangkok and contributes to a regional knowledge product on strategies for
extension of social protection to informal economy workers (output of RAS 126). This
regional product intends to promote exchange of experiences across all Asia and the
Pacific, and with Latin America too.
In Viet Nam, Indonesia, the project will generate new knowledge and evidence notably
through the conduct of barriers and needs review for extending social security; financial,
institutional and legal assessment of different options for extending coverage; reinforced
training for social security staff and inspectors; among other products.
The project will publish a review of good practices for extending social security coverage
among informal and MSMEs workers and self-employed from countries in Asia and
worldwide.
In that sense, the knowledge production under the project links closely and contributed to
the global knowledge development on SPFs of the Flagship Programme. (See box 4).
Capacity building
The project develops capacities of ASEAN Secretariat and ASEAN Member States policy
makers, social partners, managers and technical staff through the provision of fellowships,
the organization of technical workshops, seminars on social protection, the sharing of
experiences and the development of a network of experts on this thematic.
In Viet Nam and Indonesia, the project contributes to reinforce capacities in the field of
the management and implementation of social security schemes and to further develop
national and provincial institutions. This will be a considerable asset when developing new
schemes targeting the informal economy workers and the poorest segments of the
population.
43
7. BUDGET
7.1 Inputs
Human resources: The project counts with six project staff as described in 3.2.
Management Arrangement: two located in Bangkok, Thailand; two stationed in Hanoi, Viet
Nam; and two in Jakarta, Indonesia to implement the project activities during the project
period. International and local consultants are also hired occasionally on specific activities
under the close supervision of the CTA and NPCs.
Technical resources: The project best utilizes the ILO’s internal technical resources,
including tools and knowledge base to support the implementation of the project. These
technical resources developed other than in the target countries require adaptation to
make them suitable to the socio-economic development context in each of the two
countries.
Project support facilities: The project office space and equipment to support the project
implementation will have to be provided in the three duty stations (Bangkok, Hanoi and
Jakarta) and maintained during the project.
The ILO Regional Office for Asia and the Pacific and the ILO DWT in Bangkok have
extensive experience in executing technical cooperation projects at the similar resource
level and in several countries as the proposed project. ROAP and the DWT also liaise with
the ASEAN Secretariat and provide support for the organization of the regional activities as
well as knowledge management and knowledge sharing. Finally ROAP and DWT ensure the
project objectives to be achieved by closely monitoring and advising the progress of the
project and timely utilization of the project fund.
The project also involves technical expertise of the ILO Headquarter, notably ILO SOCPRO.
To this extent, proper human and financial resources allocation will be discussed and
agreed between ILO Headquarters and the project, before starting implementation.
7.2 Project Budget
The Government of Japan, through its Ministry of Health, Labour and Welfare, provides
USD 664,000 for the first year of the project. A similar allocation is expected on a yearly
basis for a duration of three years in total. The contribution will be made in three
instalments on year-to-year basis.
.
44
Annex A: Logframe matrix
Direct recipients: The ASEAN Secretariat, Ministries of Labour and other line ministries dealing with social protection, ATUC, ACE, and relevant CSOs of ASEAN
countries; MOLISA, VSS, VNGCL, VNCCI and NAC-SA Viet Nam of Viet Nam; Indonesia - Ministry of Manpower and Transmigration, Ministry of Social Affairs, Ministry of
National Planning and Development (BAPPENAS), BPJS Ketenagakerjaan- Employment, DJSN, APINDO, KSBI, KSPI, KASBI, KSPSI. UN agencies working on social
protection.
Ultimate beneficiaries: Women and men in the working age. A special attention will be given to own-account workers and unpaid contributing family workers; wage
earners working in micro, small and medium enterprises; employees without contract and sub-contracted workers; casual, seasonal and short-term workers; and
migrant workers (undeclared by their employees or falling into the gaps of the system).
Project title: Promoting and building social protection in Asia (3rd
phase): Extending social security coverage in ASEAN
Project duration: 36 months (March 2016 – March 2019)
Project budget: US$ 1.964 million
Project structure Indicators Means of verification Assumptions, hypothesis and Risks
Development Objectives/Expected Impact: The project aims at increasing social security coverage by improving application of social security laws/..
Greater awareness and interest
among constituents in
participating to social security
systems
Increase in the number of
contributors to social security
schemes
People’s trust in public institutions does
not only rely on ILO’s advocacy work, but
also good governance and transparency.
Immediate Objective / Outcome 1: Knowledge and expertise are increased among ASEAN Member States to extend social protection to all and as a result,
measures are proposed at national level to extend social security coverage in ASEAN, emphasizing on self-employed, informal and MSMEs workers.
1. Number of countries that have
improved legal and institutional
frameworks to extend social
security coverage to self-
employed, informal and MSMEs
workers.
1. Review of strategy/policy documents
2. Consultation with government and
social partners
3. Number of requests for technical
assistance and advisory services to ILO
or other development partners
4. Official documents
Sufficient knowledge, expertise and
willingness among politicians, policy
makers and social partners to maintain as
a priority extension of social security
coverage to self-employed, informal and
MSMEs workers among the government’s
priorities, even if government changes.
45
Output 1.1: Knowledge and
expertise on strategies and
practices to improve coverage of
self-employed, informal and
MSMEs workers, and compliance
of social security laws
1. Number of recommendations to
extend social protection coverage
adopted by the ILO-ASEAN seminar,
in line with ILS
2. Number of copies of the report
on country experiences and
recommendations to relevant
government agencies and social
partners distributed.
3. Number of inputs shared with
the technical team preparing the
global guide on extension of social
protection to the workers of the
informal economy
1. Communication with countries and
request for additional information
including inputs to national
workshops.
2. Distribution list of the report of the
ILO-ASEAN tripartite seminar.
3. Report on country experiences
extending coverage to self-employed,
informal economy and MSMEs
workers, including enforcement
mechanisms, draw lessons learnt and
recommendations for possible
application in ASEAN.
4. Modules of the global guide
Nomination of participants to ILO-ASEAN
tripartite seminar are done by higher levels of
authorities, and do not necessarily results in
the selection of those most engaged in the
topic.
It is necessary to engage the ASEAN
Secretariat in the preparation of the ILO-
ASEAN tripartite seminar to ensure
consistency with SLOM and SOMSWD
agendas.
Research/report on country experiences for
extending coverage to self-employed, informal
economy and MSMEs workers, including
enforcement mechanisms, draw lessons learnt
and recommendations for possible application
in ASEAN are disseminated to and shared with
relevant agencies and social partners and will
be used as a guidance.
The global guide is printed before lessons
learnt and experiences are generated by the
project.
Output 1.2: Capacity of ASEAN
policy makers, practitioners and
social partners to design and
implement social protection
policies strengthened
1. Number of female and male
policy makers and practitioners
trained on measures for improving
social security coverage (design,
enforcement, institutional
arrangements).
2. Number of male and female
workers’ and employers’
representatives who are trained
and informed for better engaging in
1. Training/Workshop reports
2. List of experts trained and
deployed for South-South
Cooperation
Selection of the participants to the
trainings is crucial to ensure the
improvement and implementation of
social protection policies.
Ensuring availability of the key experts can
be a challenge.
46
policy discussions for reforming
social protection.
Immediate objective 2 / Outcome 2: More workers are covered by social security schemes, through improved policy, legal framework, and enforcement and
delivery mechanisms in Viet Nam.
1. Number of people previously
excluded that are now covered
1. Viet Nam Social Security database of
contributors
VSS does not collect systematically and does
not release information on contributors.
Output 2.1: Analysis of
impediments and
recommendations for extending
social insurance coverage (review
of legal/design and
implementation aspects)
1. Number of meetings for
identifying gaps and
recommendations for improving
social insurance coverage
2. Number of recommendations
aimed at extending social
insurance coverage endorsed by
tripartite constituents
3. Number of female and male
participants, and workers and
employers’ representatives,
attending the consultation
workshops
1. Progress report of the project
2. Minutes and reports of the meetings
and workshops
3. Technical report of the assessment
and recommendations for extending
social security coverage
The National Officers and consultants be
technically strong and capable to engage key
stakeholders to participate in the
consultation meetings on fact findings
discussion.
Output 2.2: Improved decrees
and circulars for a better
enforcement of the social
security laws
1. Number of legal documents
revised and reflecting the ILO
position
2. Number of consultations
conducted to discuss the revisions
and improve understanding of
ILO’s position
1. Legal documents (laws, decrees,
circulars)
2. Minutes of the consultations
Government and social partners do not
support ILO’s position and revised documents
do not include ILO’s recommendations
Social partners are engaged in other major
reforms and social protection is not a priority
in their agenda.
47
Output 2.3: Enhanced functions
and capacity of social
insurance/labour inspection
1. Number of measures and
training material for improving role
of social insurance/labour
inspectors endorsed by tripartite
constituents
2. Number of male and female
social insurance/labour inspectors
trained.
1. Technical reports
2. Reports of the training activities
The government, including Ministries of
Finance, does not see the justification for
strengthening social insurance and labour
inspectorate.
Resources are limited to include provincial
inspectors, so limiting the impact of the
training.
Output 2.4: Support to Viet Nam
Social Security for streamlining
procedures and services for
social insurance registration,
payment of contributions,
benefits claims and appeals, if
relevant in one proposed sector
of the economy.
1. Number of meetings for
discussing the amendments to
procedures and possible new
mechanisms
2. Number of male and female
participants, workers’ and
employers’ representatives
participating to the meetings
3. Number of amendments to
procedures and possible new
mechanisms endorsed by
tripartite constituents.
1. Progress report of the project
2. Minutes of meetings
3. Technical report of the assessment
and recommendations for
streamlining procedures
The project is not given access to the IT
system (VSS database, ES database,
business registration) to understand how
to improve the use of electronic
mechanisms.
Government’s resources are not available
to implement the amended procedures
and new mechanisms.
Output 2.5: Awareness and
understanding raised on benefits
of social security and rights and
obligations of employers and
workers
1. Number of male and female
workers’ and employers’
representatives attending the
workshops
2. Number of support prepared to
help raising awareness on social
protection
1. Minutes of the workshops
2. Support prepared for campaigning
and promoting social protection
Workers and employers’ representatives
are not giving enough importance to social
protection, as to make it a priority in their
agenda.
Immediate objective 3/Outcome 3: More workers are covered by social security schemes, through improved implementation arrangements, enforcement measures
and support services in Indonesia.
48
1. Number of people previously
excluded that are now covered
1. BPJS-Employment database of
contributors
BPJS-Employment does not collect
systematically and does not release
information on contributors.
Output 3.1: Analysis of
impediments and evidence-
based recommendations for
extending social insurance
coverage (review of legal/design
and implementation aspects)
1. Number of meetings for
identifying gaps and
recommendations for improving
social insurance coverage
2. Number of recommendations
aimed at extending social
insurance coverage endorsed by
tripartite constituents
3. Number of female and male
participants, and workers and
employers’ representatives,
attending the consultation
workshops
1. Progress report of the project
2. Minutes and reports of the meetings
and workshops
3. Technical report of the assessment
and recommendations for extending
coverage
The National Officers and consultants are
technically strong and capable to engage key
stakeholders to participate in the
consultation meetings on fact findings
discussion.
Output 3.2: Enhanced role of the
social security inspection,
learning from different countries’
experiences including the
Sharoushi system of Japan.
1. Number of measures and
training material for improving role
of social insurance/labour
inspectors endorsed by tripartite
constituents
1. Technical reports
The government, including Ministries of
Finance, does not see the justification for
strengthening social insurance and labour
inspectorate.
Output 3.3: Support to PBJS-
Employment for streamlining
procedures and services for
social insurance registration,
payment of contributions,
benefits claims and appeals, if
relevant in one proposed sector
of the economy.
1. Number of meetings for
discussing the amendments to
procedures and possible new
mechanisms
2. Number of male and female
participants, workers’ and
employers’ representatives
1. Progress report of the project
2. Minutes of meetings
The project is not given access to the
management information system (VSS
database, ES database, business
registration) to understand how to
improve the use of e-governance and new
mechanisms.
Government’s resources are not available
49
participating to the meetings
3. Number of amendments to
procedures and possible new
mechanisms endorsed by
tripartite constituents.
3. Technical report of the assessment
and recommendations for
streamlining procedures
to implement the amended procedures
and new mechanisms.
Output 3.4: Awareness and
understanding raised on benefits
of social security and rights and
obligations of employers and
workers
1. Number of male and female
workers’ and employers’
representatives attending the
workshops
2. Number of support prepared to
help raising awareness on social
protection
1. Minutes of the workshops
2. Support prepared for campaigning
and promoting social protection
Workers and employers’ representatives
are not giving enough importance to social
protection, as to make it a priority in their
agenda.
50
Annex B: Implementation Plan
Please attach as a separate Excel document. See template of the implementation plan at:
http://www.ilo.org/intranet/english/bureau/pardev/tcguides/templates.htm
Annex C: Performance Plan
Please attach as a separate Excel document. See template of the performance plan at:
http://www.ilo.org/intranet/english/bureau/pardev/tcguides/templates.htm
Annex D: GENDER and TRIPARTISM markers
Gender marker (as apparent in project document – please verify and signal any changes)
1 Contains no objectives, outcomes outputs or activities that aim to promote gender equality
2 Does not include gender equality as an outcome, but some outputs and/or activities specifically
address gender issues
3 Includes gender equality in the outcome(s), and some outputs/activities specifically address
gender issues
4 Main stated objective is to promote gender equality, and outcomes, outputs and activities are
designed to promote gender equality
Tripartism and Social Dialogue marker
1 None
2 Tripartite constituents, including social partners, were involved in project design
3 Social partners are direct recipients of the project
4 Social partners participate in project implementation
5 Social partners are included in the governance of the project
6 Project activities specifically strengthen mechanisms of social dialogue