All private firms in Laos may be asked to contribute to the social security fund as Labour Management Law drafters consider measures to help Lao workers access free health care and retirement pensions.
Under Article 92 all businesses will have to contribute money into the compulsory social security fund, making it possible for their employees to access free health care when they are sick and receive a pension when they retire.
The social security fund provides workers and their families with free health care and a stable income during illness, childbirth, workplace accidents, job loss and other difficulties they may face.
At present, most employees do not have social security, as the majority of businesses do not contribute to the fund. This poses a big challenge for the government to ensure health care for its citizens and to support people when they lose their jobs.
Labour Management Law drafters are welcoming comments from concerned sectors, particularly the Lao Federation of Labour Unions, which represents employees, and the Lao National Chamber of Commerce and Industry, which represents businesses.
The policymakers hope to submit a draft of the law to the cabinet and the National Assembly for consideration by the end of this year.
Lao Social Security Organisation Vice Chairman Mr Onesy Boutsivongsakd welcomed the government's move.
Mr Onesy, who is also President of the Association of the Lao Garment Industry, said that only about 25 percent of companies in Laos contribute to social security for their employees, adding that one of the major problems in trying to expand the system is that business owners do not understand its importance.
He said that when most businesses don't contribute, the social security fund is small and cannot offer much support to workers. If all businesses in Laos contributed to the fund, it would enable more workers to access free health care.
Many private companies say they would like to become a member of the social security network so their employees can access free health care. However, they expressed concerns about the expansion of free health care services, particularly in district hospitals.
They said most businesses want their employees to receive treatment at the main hospitals in Vientiane or at provincial hospitals, because they offer better service. However, this makes the hospitals overcrowded and unable to provide sufficient care.
They said that improved district hospitals would encourage businesses to buy social security for their employees as quality health services would be more widely available.
