Hanoi-Vietnam: Guidance on determining monthly salary severing as the basis for occupational accident and disease insurance premium payment

Circular 26 provides guidance on determining the monthly salary set forth calculation of occupational accident or disease benefits in Vietnam as follows:

- Be understood as the salary of month preceding the month in which the employee meets with occupational accident or suffers from occupational disease;

- Be the salary of the last month of contribution associated with the job causing occupational disease if the employee retired or no longer did the job at risk of occupational diseases.

- If an employee meets with an occupational accident within the first month of contribution to the insurance fund or within the first month of re-contribution to the insurance fund after an interrupted payment period due to termination of labor contract, the monthly salary set forth calculation of benefit shall be salary of such month.

- If an employee subject to pay regime stipulated by the state starts making contributions to social insurance fund before January 1, 2016, the monthly salary set forth calculation of benefit shall be determined according to his/her pay step and allowances (if any) multiplied by (x) statutory statutory pay rate at the allowance receipt time.

-If an employee enters into multiple labor contracts simultaneously with multiple employers, the amount of salary set forth calculation of benefit shall be equal to total amounts of salary as basis for contribution to the insurance fund of all labor contracts in the month preceding the month of last occupational accident or disease but not exceeding 20 months' statutory pay rate.

The determination of the period covered by occupational accident or disease benefits may be found in Circular 26/2017/TT-BLDTBXH effective from December 01, 2017.

- Thanh Lam -

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