In which cases are enterprises in Vietnam eligible for a reduction in mandatory social insurance contributions?

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In which cases are enterprises in Vietnam eligible for a reduction in mandatory social insurance contributions?​ (Illustrative image)

Pursuant to the provisions of Article 5 Decree 58/2020/ND-CP, enterprises operating in industries with high risks of occupational accidents and diseases in Vietnam are allowed to apply a contribution rate of 0.3% of the salary fund, which is the basis for compulsory social insurance contributions to the Fund for Occupational Accidents and Diseases if they meet the following conditions:

- Within three years up to the proposed time, they have not been administratively penalized by means of a fine, nor have they been prosecuted for offenses related to occupational safety, hygiene laws, and social insurance;

- They have accurately, fully, and punctually submitted periodic occupational accident reports and occupational safety and hygiene reports for the three consecutive years prior to the proposal year;

- The frequency of occupational accidents in the year preceding the proposal year must have decreased by 15% or more compared to the average frequency of occupational accidents in the three consecutive years before the proposal year, or no occupational accidents occurred within the three consecutive years preceding the proposal year.

Thus, according to the above provisions, enterprises operating in industries with high risks of occupational accidents and diseases that meet the three aforementioned conditions shall be eligible to apply a compulsory social insurance contribution rate of 0.3% of the employee's salary fund to the Fund for Occupational Accidents and Diseases. Enterprises shall follow the procedures to apply for a reduction in the compulsory social insurance contribution rate to the Fund for Occupational Accidents and Diseases through the following steps:

Step 1: Prepare the application dossier

Enterprises operating in industries with high risks of occupational accidents and diseases shall prepare the following application dossier for the reduction in the compulsory social insurance contribution rate:

- A proposal document following Form No. 01;

- A certified copy of the Occupational Safety and Hygiene and Occupational Accident Reduction Assessment Report conducted by an occupational safety and hygiene assessment organization according to Form No. 02.

Note: The Occupational Safety and Hygiene and Occupational Accident Reduction Assessment Report must be conducted by an occupational safety and hygiene assessment organization ensuring the following requirements:

- An organization granted a certificate of eligibility to conduct occupational safety and hygiene training of Grade C (trained to train occupational safety and hygiene workers) which is still valid as regulated;

- Use in-house occupational safety and hygiene experts of the organization during the assessment process. The expert must be an in-house trainer of the organization who has been trained, examined, and met the professional requirements for occupational safety and hygiene assessment as regulated by the Ministry of Labor, War Invalids and Social Affairs of Vietnam (MOLISA).

Step 2: Submit the application dossier

Enterprises wishing to apply a lower compulsory social insurance contribution rate to the Fund for Occupational Accidents and Diseases than the normal rate shall submit one dossier directly, online, or via post.

Step 3: Receive the results

Within 30 working days from the receipt of the complete dossier of the enterprise, the MOLISA shall send an official letter to the Department of Labor, War Invalids and Social Affairs of Vietnam (DOLISA) requesting an assessment of compliance with occupational safety, hygiene, and insurance laws according to Form No. 03; publicly post the information of the agency, unit, enterprise, or organization on the electronic portal of the MOLISA for at least 10 days to collect wide public opinions.

An appraisal organization shall decide on the application of the new lower contribution rate to the Fund for Occupational Accidents and Diseases according to Form No. 04; send or directly return the results online or via post to enterprises and relevant social insurance agencies for implementation. In the case of ineligibility to apply the lower contribution rate, the reasons must be clearly stated to the enterprise.

Enterprises should note that the period for implementing the compulsory social insurance contribution rate to the Fund for Occupational Accidents and Diseases of 0.3% of the employee's salary fund is 36 months, from the month the decision on the application of the contribution rate takes effect.

Ty Na

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