Conditions for receiving voluntary occupational accident insurance policies from January 1, 2025 in Vietnam

Conditions for receiving voluntary occupational insurance policies from January 1, 2025 in Vietnam​ (Image from the Internet)

On November 01, 2024, the Government of Vietnam issued Decree 143/2024/ND-CP regulating voluntary occupational insurance for employees not bound by employment contracts.

1. Conditions for voluntary occupational insurance venefits from January 01, 2025 in Vietnam

The conditions for voluntary occupational insurance benefits are specifically stipulated in Article 5 of Decree 143/2024/ND-CP as follows:

- Employees participating in voluntary occupational insurance are eligible for benefits as stipulated in Article 4 of Decree 143/2024/ND-CP when they meet the following conditions:

+ A reduction in work capacity of 5% or more due to an occupational accident occurring while participating in voluntary occupational insurance;

+ Not falling into the cases stipulated in Clause 2, Article 5 of Decree 143/2024/ND-CP.

- Employees will not receive occupational accident benefits as per Article 4 of Decree 143/2024/ND-CP if the accident is due to one of the following causes:

+ Conflicts of the victim with the person causing the accident unrelated to work or labor duties;

+ Intentional self-harm by the employee;

+ Use of drugs or addictive substances contrary to legal regulations.

2. Payment methods and contribution rates for employees participating in voluntary occupational insurance from January 01, 2025 in Vietnam

According to Article 11 of Decree 143/2024/ND-CP, the payment methods and contribution levels for employees participating in voluntary occupational insurance are as follows:

- Employees can register with the social insurance agency for one of the following payment methods:

+ Payment every 6 months;

+ Payment every 12 months.

- Those currently participating in voluntary occupational insurance can change the payment method. Changes in payment methods are executed after completing the previously registered payment cycle.

- The contribution levels for voluntary occupational insurance are as follows:

+ The 6-month contribution equals 6% of the minimum monthly wage of Region IV;

+ The 12-month contribution equals 12% of the minimum monthly wage of Region IV.

- The timing of contributions for occupational accident insurance, as stipulated in Clause 1, Article 11 of Decree 143/2024/ND-CP, will be implemented as follows:

+ First time, immediately upon registration for voluntary occupational insurance;

+ Subsequent times, within 10 days before the end of the payment cycle.

+ Immediately upon re-registering for voluntary occupational insurance as per Article 17 of Decree 143/2024/ND-CP

“Article 17. Procedure for Re-registration of Payment Method

1. The re-registration application for changing the payment method, serving as the basis for paying voluntary occupational insurance, includes:

a) Social insurance book;

b) Social insurance participation declaration.

2. Resolution of re-registration for voluntary occupational insurance payment method

a) Participants submit the application specified in Clause 1 of this Article to the social insurance agency;

b) The social insurance agency is responsible for resolving on the day if receiving a complete application as per regulations. If not resolved, a written response with a clear reason must be provided.”

Refer to the Decree 143/2024/ND-CP, effective from January 01, 2025.

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