Vietnam: Important social insurance policies effective from September 2020

LawNet would like to respectfully send to Customers and Members the important social insurance policies that will come into effect from September 2020 in Vietnam, specifically including:

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1. Changing the level of assistance for the occupational accident and occupational disease insurance from September 15, 2020

Specifically, Decree No. 88/2020/ND-CP of Vietnam’s Government changes the level of assistance for the occupational accident and occupational disease insurance provided for employees who suffer from occupational accident or occupational disease, specifically as follows:

- Assistance in career change: The maximum assistance is 50% of the tuition fees but must not exceed 15 times the statutory pay rate (remains unchanged);

- Assistance in occupational disease examination: 50% of the costs of examination of the occupational disease determined on the basis of list of prices of occupational disease examination at the time on which the employee had the occupational disease examination after health insurance payout has been provided, but the assistance must not exceed VND 800,000 per person per examination (before September 15, 2020, this assistance must not exceed one third of the statutory pay rate per person per examination).

- Assistance in occupational disease treatment: 50% of the costs of treatment of the occupational disease determined on the basis of list of prices of occupational disease treatment at the time on which the employee had the occupational disease treatment and after health insurance payout has been provided, but such assistance must not exceed VND 15,000,000 per person (before September 15, 2020, this assistance must not exceed 10 times the statutory pay rate per person).

- Assistance in occupational rehabilitation: 50% of the costs of occupational rehabilitation determined on the basis of list of prices of occupational rehabilitation at the time of occupational rehabilitation and after health insurance payout has been provided, but such assistance must not exceed VND 3,000,000 per person per time (before September 15, 2020, this assistance must not exceed 02 times the statutory pay rate per person per time).

- Assistance for re-investigation into an occupational accident or occupational disease: 100% of the funding for re-investigation into an occupational accident or occupational disease (remains unchanged), including:

+ Travel expenses for persons joining the investigation team;

+ Costs of hiring experts and fees for expert examination;

+ Fees for printing documents concerning the occupational accident or occupational disease.

- Assistance in occupational safety and health training: An employer is entitled to a maximum lump sum financial assistance within 24 months at a rate of 70% of the actual costs of training for each employee eligible for training assistance, but not exceeding the following:

Assistance in initial training:

+ Not exceeding VND 150,000 per person, for the person to be trained who is a safety and health officer;

+ Not exceeding VND 300,000 per person, for the person to be trained who is a manager responsible for occupational safety and health or a health worker (before September 15, 2020, this assistance must not exceed a quarter of the statutory pay rate per person);

+ Not exceeding VND 600,000 per person, for the person to be trained who does work subject to strict occupational safety and health requirements (before September 15, 2020, this assistance must not exceed haft of the statutory pay rate per person);

+ Not exceeding VND 700,000 per person, for the person to be trained who is a person responsible for doing occupational safety and health work (before September 15, 2020, this assistance must not exceed 01 time the statutory pay rate per person).

Assistance in periodic training shall not exceed 50% of that in initial training.

2. Annulling the regulation on calculating the working time before January 01, 1995 to be eligible for social insurance benefits

Specifically, Decree No. 89/2020/ND-CP of Vietnam’s Government stipulating the functions, tasks, powers and organizational structure of Vietnam Social Insurance (effective from September 20, 2020) annuls the regulation of Clause 7 Article 23 of Decree No. 115/2015/ND-CP, which is as follows:

Each employee who has no original documents on working period before January 01, 1995 shall have his/her employer provided explanation for the loss, certified the employee's working and salary history, certified that the employee has not received severance pay or lump-sum benefit, and then the employer shall send report to the Ministry or agency in charge of central government or People’s Committee of the province for certification and the Ministry of Labor, War Invalids and Social Affairs for consideration.

Above are the important social insurance policies that will take effect from September 2020. Employees should pay attention to these changes to protect their rights and benefits.

Ty Na

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