Shortly, there will be regulations on increasing the social insurance premium paid by enterprises in Vietnam, including the increase in the payment rate of premiums to the occupational accident and disease insurance fund.
Article table of contents
According to the Draft Decree regulating the payment rate of compulsory social insurance premiums to the occupational accident and disease insurance fund, employers shall contribute 0.7% of the monthly salary fund, which is the basis for social insurance contributions of their employees.
Currently, according to Clause 1 Article 3 Decree 44/2017/ND-CP, the payment rate of compulsory social insurance premium to the occupational accident and disease insurance fund is 0.5% based on the salary fund serving as the basis for social insurance premium payment. Therefore, if the Draft is approved, the payment rate of compulsory social insurance premiums to the occupational accident and disease insurance fund by enterprises will increase from 0.5% to 0.7%.
Illustration (source: internet)
However, this Draft also stipulates certain cases where enterprises can pay social insurance premiums at a lower rate to the occupational accident and disease insurance fund if the following conditions are met:
|
Payment rate |
Condition |
|
0,5% |
- Periodically report on occupational accidents and occupational safety and health for 03 consecutive years before the time of proposing the adjustment of the payment rate in an honest, accurate and complete form, in accordance with the contents and time as prescribed; - Have no violations of occupational safety and hygiene in the 03 years preceding the time of proposing the adjustment of the payment rate; - Reduce the frequency of occupational accidents by 50% (including accidents when traveling from the place of residence to the workplace or from the place of work to the place of residence) from the year immediately preceding the year of the proposed adjustment compared to the average frequency of occupational accidents in 03 consecutive years from the year preceding the year of the proposed adjustment for enterprises in industries with a high risk of occupational accidents, occupational diseases or a 75% reduction in the frequency of occupational accidents (including accidents when traveling from the place of residence to the workplace or from the place of work to the place of residence) calculated from the year immediately preceding the year of the proposed adjustment compared to the average frequency of occupational accidents in 03 consecutive years from the year preceding the year propose adjustments for the remaining enterprises; - Have expenses for implementation of the average occupational safety and health plan in 03 years preceding the time of proposing adjustment of the payment rate equal to at least 0.3% of the salary fund as a basis for payment of social insurance premiums of employees; - Have a certificate of occupational safety and health management system standards according to ISO 45001:2018. |
|
0,3% |
- Periodically report on occupational accidents and occupational safety and health for 03 consecutive years before the time of proposing the adjustment of the payment rate in an honest, accurate and complete form, in accordance with the contents and time as prescribed; - Have no violations of occupational safety and hygiene in the 03 years preceding the time of proposing the adjustment of the payment rate; - Reduce the frequency of occupational accidents by 75% (including accidents when traveling from the place of residence to the workplace or from the workplace to the place of residence) from the year immediately preceding the year of the proposed adjustment compared to the average frequency of occupational accidents in 03 consecutive years from the year preceding the year of the proposed adjustment for enterprises in the industries with high risk of occupational accidents, occupational diseases or non-occurrence of occupational accidents (including cases of accidents when traveling from place of residence to workplace or from place of the workplace to a place of residence) from 03 years preceding the year of the proposed adjustment for the remaining enterprise; - Have expenses for implementation of the average occupational safety and health plan in 03 years preceding the time of proposing adjustment of the payment rate equal to at least 0.5% of the salary fund as a basis for payment of social insurance premiums of employees; - Have a certificate of occupational safety and health management system standards according to ISO 45001:2018. |
In case of detecting false declarations or falsification of occupational safety and health assessment dossiers according to the conclusions of State agencies, enterprises must pay 1% of the salary fund as a basis for paying social insurance premiums of employees.
Details may be found in Draft Decree stipulating the payment rate of compulsory social insurance premiums to the occupational accident and disease insurance fund, which is expected to take effect from January 1, 2020
Duy Thinh
- Key word:
- social insurance premiums
- Vietnam
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