project document: promoting and building social protection in asia

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1 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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Page 1: Project Document: Promoting and building social protection in Asia

1

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

Page 2: Project Document: Promoting and building social protection in Asia

2

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

Page 3: Project Document: Promoting and building social protection in Asia

3

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/ ).

Page 4: Project Document: Promoting and building social protection in Asia

4

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).

Page 5: Project Document: Promoting and building social protection in Asia

5

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

Page 6: Project Document: Promoting and building social protection in Asia

6

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.

Page 7: Project Document: Promoting and building social protection in Asia

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)

Page 8: Project Document: Promoting and building social protection in Asia

8

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

Page 9: Project Document: Promoting and building social protection in Asia

9

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

Page 10: Project Document: Promoting and building social protection in Asia

10

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.)

Page 11: Project Document: Promoting and building social protection in Asia

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)

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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.

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• 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

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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

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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

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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.

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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

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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.

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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)

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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.

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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.

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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

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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).

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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.

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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)

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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.

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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.

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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

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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.

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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)

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- 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

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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;

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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

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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

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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

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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

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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.

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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.

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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

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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.

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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.

.

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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.

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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.

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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.

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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.

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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

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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.

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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