Levels of voluntary occupational accident insurance benefits from January 01, 2025 in Vietnam

Levels of voluntary occupational accident insurance benefits from January 01, 2025 in Vietnam​ (Image from the internet)

On November 1, 2024, the Government of Vietnam issued Decree 143/2024/ND-CP regarding voluntary occupational accident insurance for employees not employed under labor contracts.

Levels of voluntary occupational accident insurance benefits from January 01, 2025 in Vietnam

Pursuant to Article 7 of Decree 143/2024/ND-CP, the provisions for occupational accident benefits when participating in voluntary occupational accident insurance are as follows:

(1) Employees who suffer from a reduction in work capacity from 5% to 100% due to occupational accidents are entitled to a lump-sum allowance as follows:

- A 5% reduction in work capacity entitles the employee to three times the monthly minimum wage rate as prescribed for Region IV by the Government of Vietnam (hereinafter referred to as the Region IV minimum monthly wage), thereafter for each additional 1% reduction, an additional 0.3 times the Region IV minimum monthly wage is granted;

- In addition to the above-mentioned allowance, employees are also entitled to an additional allowance based on the number of years contributed to the Voluntary Occupational Accident Insurance Fund. For one year or less, a 0.5 times the Region IV minimum monthly wage is calculated; thereafter, each additional year of contribution to the fund entitles an additional 0.3 times the Region IV minimum monthly wage;

- The period used as the basis for calculating occupational accident benefits is the total time the employee has contributed to the Voluntary Occupational Accident Insurance Fund, counted up to the month immediately preceding the month of the occupational accident; if the contributions are not continuous, they will be accumulated; one year is counted when there are 12 full months of contributions to the Voluntary Occupational Accident Insurance Fund.

(2) Relatives of employees who die due to occupational accidents are entitled to a lump-sum allowance equal to 31.5 times the Region IV minimum monthly wage, if they fall into one of the following cases:

- The employee dies due to an on-the-job occupational accident;

- The employee dies during the initial treatment phase for an occupational accident;

- The employee dies during the treatment period for injuries due to occupational accidents without having been assessed for the level of work capacity reduction.

(3) Occupational accident benefits are granted for each occurrence of an occupational accident, without accumulating incidents from previous incidents.

(4) In cases where reassessment results in an increased level of work capacity reduction compared to the previously compensated level, the employee is entitled to an additional lump-sum allowance to ensure they receive the full compensation corresponding to the increased level of work capacity reduction as stipulated in (1).

(5) Timing for Allowance Entitlement:

The timing to determine the Region IV statutory pay rate used as the basis for allowance entitlement is calculated in the month when employee stabilizes treatment and is discharged from the hospital or in the month with the conclusion of the Medical Assessment Council if not hospitalized.

In cases of occupational accidents where it is not possible to determine the time of stabilization and discharge (the discharge paper has a subsequent appointment; removal of plaster; splint, or screws), the allowance entitlement timing is calculated in the month of the Medical Assessment Council's conclusion;

- The allowance entitlement timing for cases stipulated in (2) is calculated in the month of the employee's death;

- The allowance entitlement timing for cases stipulated in (4) is calculated in the month of the Medical Assessment Council's conclusion.

Refer to more details in Decree 143/2024/ND-CP, effective from January 1, 2025.

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