Decree 58/2020/ND-CP on rates of compulsory insurance contributions to the occupational accident and disease benefit fund, issued on May 27, 2020, takes effect from July 15, 2020.
Article table of contents
Documentation and procedures for lower-than-normal rate of contribution to the occupational accident and disease benefit fund in Vietnam (Internet image)
Decree 58/2020/ND-CP stipulates that enterprises operating in industries with high risks of occupational accidents and diseases shall be entitled to the contribution rates which is 0.5% of the statutory base payroll if they conform to following eligibility requirements:
- Within three years prior to the submission date, they have not been subject to any administrative monetary fine or any criminal prosecution for their violation against laws on occupational safety, hygiene and social insurance;
- They have submitted periodic reports on workplace accidents, occupational safety and hygiene in an accurate, sufficient and timely manner within three consecutive years prior to the submission year;
- Frequency rate of occupational accidents in the year preceding the submission year must drop by at least 15% of the average frequency of workplace accidents in 3 consecutive years prior to the submission year, or have not had any occupational accident 3 years preceding the submission year.
According to Article 6 of this Decree, if the employer wishes to have access to the lower-than-normal rate of contribution to the occupational accident and disease benefit fund, they shall submit 01 set of documents directly or online or by post as prescribed in Article 6 of this Decree to the Ministry of Labor, War Invalids and Social Affairs. The application includes:
- Written request form prescribed by using the Form 01 given in an Appendix to Decree 58/2020/ND-CP.
- . Authenticated or certified true copy of the report on assessment of occupational safety and hygiene and reduced incidence frequency of workplace accidents. Report on assessment of occupational safety and hygiene and reduced incidence frequency of accidents at work prescribed in the Form 02 given in the Appendix to Decree 58/2020/ND-CP.
Within 30 working days from receipt of the full set of application documents from the employer, the Ministry of Labor, War Invalids and Social Affairs shall take the following steps:
- Send the written request to the Department of Labor - Invalids and Social Affairs for their assessment of the employer’s compliance with the law on occupational safety and hygiene by using the Form 03 given in the Appendix to Decree 58/2020/ND-CP;
- Post information about agencies, units, enterprises and organizations on the web portal of the Ministry of Labor - Invalids and Social Affairs to collect public comments for at least 10 days;
- Conduct any assessment and consider any decision on the application of the new contribution rate lower than the ordinary rate of contribution to the occupational accident and disease benefit fund according to the Form 04 given in the Appendix to Decree 58/2020/ND-CP; send or inform results directly or online or by post to enterprises and social insurance agencies for further implementation purposes.
- In case of ineligibility for the lower-than-normal rate of contribution, a reply, enclosing clear explanations for such ineligibility, must be sent to the applicant employer.
The time limit for application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund is 36 months from the month in which the decision of application of such rate is in force.
Within 60 days before the expiry of the time limit for application of such rate as prescribed above, if the employer still wishes to continue to pay the lower-than-normal rate of contribution to the occupational accident and disease benefit fund, then they should prepare 1 set of application documents the same as those prescribed in Article 6, and apply according to the processes and procedures stipulated in Article 8 of Decree 58/2020/ND-CP.
Nguyen Trinh
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