Principles for managing the operations of the voluntary occupational accident insurance fund in Vietnam from January 1, 2025

Principles for managing the operations of the voluntary occupational accident insurance fund in Vietnam from January 1, 2025 (Image from Internet)

On November 1, 2024, the Government of Vietnam promulgated Decree 143/2024/ND-CP regulating voluntary occupational accident insurance for employees working without labor contracts.

1. Principles for managing the operations of the voluntary occupational accident insurance fund in Vietnam from January 1, 2025

According to Article 8 of Decree 143/2024/ND-CP, the management principles of the Voluntary Occupational Accident Insurance Fund include:

- The Voluntary Occupational Accident Insurance Fund is part of the Occupational Accident and Occupational Disease Insurance Fund within the Social Insurance Fund and is accounted independently.

- The management of the Voluntary Occupational Accident Insurance Fund is carried out according to management regulations on the Social Insurance Fund as stipulated in the 2014 Social Insurance Law, 2015 Law on Occupational Safety and Hygiene, and Decree 143/2024/ND-CP.

- The contribution rate for voluntary occupational accident insurance is based on the minimum wage of Region IV. The amount of support from the state budget for voluntary occupational accident insurance contributions as stipulated in Decree 143/2024/ND-CP is decided by the Government of Vietnam based on socio-economic conditions and state budget capability at each period.

- The level of benefit from voluntary occupational accident insurance is calculated based on the rate of decrease in work capacity and the duration of participation in the voluntary occupational accident insurance.

2. Assessment of decreased work capacity for employees participating in voluntary occupational accident insurance from January 1, 2025 in Vietnam

The assessment of the decrease in work capacity for employees participating in voluntary occupational accident insurance is conducted according to Article 6 of Decree 143/2024/ND-CP as follows:

- Employees who have suffered occupational accidents proactively undergo assessment or reassessment of decreased work capacity in the following cases:

+ After initial injury treatment has been stabilized;

+ After recurrent injury treatment has been stabilized;

+ For injuries that cannot be treated stably as prescribed by the Minister of Health, the employee can undergo assessment procedures before or during the treatment process.

- The social insurance agency covers the assessment fees for employees who proactively undergo the assessment of decreased work capacity if the assessment results meet the conditions for entitlement or adjustment to increase the level of voluntary occupational accident insurance benefits.

- The timing for payment of assessment fees for eligible cases as stipulated in Clause 2, Article 6 of Decree 143/2024/ND-CP is implemented along with the time of payment of occupational accident benefits as specified in Article 7 of Decree 143/2024/ND-CP.

3. Guidance on the use of the voluntary occupational accident insurance fund from January 1, 2025 in Vietnam

According to Article 9 of Decree 143/2024/ND-CP, the use of the Voluntary Occupational Accident Insurance Fund is regulated as follows:

- Payment for occupational accident insurance policies as stipulated in Article 4 of Decree 143/2024/ND-CP.

- Management costs of voluntary occupational accident insurance are implemented according to management cost content as stipulated by the 2014 Social Insurance Law.

- Investment to preserve and grow the fund according to regulations of the 2014 Social Insurance Law.

See also Decree 143/2024/ND-CP effective from January 1, 2025.

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