Regulations on funeral allowance under the New Law in Vietnam

Regulations on funeral allowance under the New Law in Vietnam (Image from the internet)

The Law on Social Insurance 2024 was approved by the 15th National Assembly of the Socialist Republic of Vietnam, 7th session on June 27, 2024.

Regulations on funeral allowance in Vietnam under the Law on Social Insurance 2024

According to Article 85 of the Law on Social Insurance 2024 regarding the funeral allowance in Vietnam:

- The following persons, when deceased, the organization or individual responsible for the funeral is entitled to a one-time funeral allowance:

+ Subjects specified in clauses 1 and 2 of Article 2 of the Law on Social Insurance 2024 who have contributed to compulsory social insurance for 12 months or more;

+ Those who die due to occupational accidents or occupational diseases as prescribed by the law on labor safety and hygiene;

+ Persons who are enjoying or temporarily suspending the enjoyment of retirement pensions; persons who are enjoying or temporarily suspending the monthly allowance for occupational accidents or occupational diseases after having left their job.

- The funeral allowance is equal to 10 times the reference level in the month when the person specified in clause 1, Article 85 of the Law on Social Insurance 2024 dies.

- In case the subjects specified in points a, b, and c, clause 1, Article 85 of the Law on Social Insurance 2024 are declared dead by the Court, the relative is entitled to the funeral allowance stipulated in clause 2, Article 85 of the Law on Social Insurance 2024.

- With regulations stipulated in clauses 1 and 2, Article 2 of the Law on Social Insurance 2024, having contributed to compulsory social insurance for 12 months or more.

Subjects of compulsory social insurance from July 01, 2025

- Employees who are Vietnamese citizens subject to compulsory social insurance participation include:

+ Persons working under an indefinite-term labor contract, fixed-term labor contract with a duration of at least 01 month, including cases where the employee and employer agree under different titles but with content indicating paid work, salary, and management, direction, supervision of one party;

+ Officials and public employees;

+ Defense laborers, public security laborers, and persons working in other jobs within cryptographic organizations;

+ Officers, professional soldiers, people’s army military personnel; officers, non-commissioned officers on professional duty, technical officers, non-commissioned officers in public security; persons engaged in cipher work paid as army personnel;

+ Non-commissioned officers, soldiers from the People's Army; non-commissioned officers, conscripts from the People's Public Security; students in the army, public security, and ciphers receiving living allowances;

+ Permanent militia members;

+ Employees working abroad under contracts specified in the Law on Vietnamese Employees Working Abroad under Contracts, except where international treaties of which the Socialist Republic of Vietnam is a member have different provisions;

+ Spouses not receiving salaries from the state budget sent abroad for official duty along with members of the representative agencies of the Socialist Republic of Vietnam abroad are entitled to living allowance policies;

+ Managers of enterprises, supervisors, representatives of state capital, representatives of state-owned enterprise capital as stipulated by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or supervisors, and other management positions elected in cooperatives, cooperative unions according to the Law on Cooperatives with salaried positions;

+ Non-professional activists at the commune level, in villages, residential groups;

+ The subjects specified in point a of this clause working part-time, with monthly wages equal to or higher than the lowest level of wages used as a basis for paying compulsory social insurance;

+ Proprietors of household businesses with business registration participating according to the Government of Vietnam’s regulations;

+ Managers of enterprises, supervisors, representatives of state capital, representatives of state-owned enterprise capital as stipulated by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or supervisors, and other management positions elected in cooperatives, cooperative unions according to the Law on Cooperatives without salaried positions.

- Employees who are foreign citizens working in Vietnam are subject to compulsory social insurance participation when working under a labor contract with a term of 12 months or more with employers in Vietnam, except for the following cases:

+ Intra-company transferees as prescribed by the law on foreign employees working in Vietnam;

+ At the time of signing the labor contract, they have reached the retirement age as stipulated in clause 2, Article 169 of the Labor Code;

+ International treaties of which the Socialist Republic of Vietnam is a member provide otherwise.

- Employers subject to compulsory social insurance participation include state agencies, public service providers; agencies, units, and enterprises belonging to the People’s Army, People’s Public Security, and cryptographic organizations; political organizations, socio-political organizations, socio-political-professional organizations, social-professional organizations, other social organizations; foreign agencies, international organizations operating on Vietnamese territory; enterprises, cooperatives, unions of cooperatives, household businesses, and other organizations and individuals employing labor under labor contracts.

(clauses 1, 2, and 3 Law on Social Insurance 2024)

Le Nguyen Anh Hao

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