Policies on Occupational Accident Insurance Benefits

1. Lump-Sum Allowance

A lump-sum allowance is applicable to employees whose working capacity is reduced from 5% to 30%.

The benefit level includes the following two items:

- 5 times the statutory pay rate (6,950,000 VND) corresponding to a 5% reduction in working capacity, and for each additional 1% reduction, an additional 2% of the statutory pay rate is granted;- An allowance calculated based on the number of years contributed to the Occupational Accident Insurance Fund: For one year or less, it is calculated as 0.5 months' salary, and for each additional year contributed to the fund, it is calculated as an additional 0.3 months' salary.

2. Monthly Allowance

A monthly allowance is applicable to employees whose working capacity is reduced by 31% or more.

The monthly allowance level includes the following two items:

- 30% of the statutory pay rate (417,000 VND) corresponding to a 31% reduction in working capacity, and for each additional 1% reduction, an additional 2% of the statutory pay rate is granted;- An allowance calculated based on the number of years contributed to the Occupational Accident Insurance Fund: For one year or less, it is calculated as 0.5% of the salary, and for each additional year contributed to the fund, it is calculated as an additional 0.3% of the salary level.

The salary used to calculate the allowances is:

- The monthly salary contributed to the Occupational Accident Insurance Fund in the month immediately preceding the month the work accident occurred;- In the case of a work accident occurring in the first month of contribution to the fund or if there is an intermittent period of participation followed by a return to work, the salary used as the basis for calculating the allowance is the salary of that month.

More details can be found in: Law on Occupational Safety and Health 2015 effective from July 1, 2016.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE