New Points on Enjoying Work Injury and Occupational Disease Benefits in 2018 in Vietnam

1. Issuance of new forms for procedures to receive occupational accident and occupational disease benefits in Vietnam

Starting from March 1, 2018, when conducting procedures for assessing the level of labor capacity reduction to receive benefits for occupational accidents and occupational diseases, employees, employers, and medical facilities in Vietnam must apply the following new forms:

- Form of Referral Letter for Assessment Examination;

- Form of Proposal Letter for Assessment Examination;

- Form of Discharge Certificate;

- Summary record of medical history form.

The above-mentioned forms are issued together with Circular 56/2017/TT-BYT.

In addition, Circular 56 also specifically stipulates the documents and records required to perform the initial assessment procedures to receive occupational accident and disease insurance policies; pension; survivor policies; one-time social insurance policies; and assessing the health of female workers after childbirth.

2. Method to determine wage base for calculating occupational accident and disease benefits in Vietnam

Clause 7, Article 4 of Circular 26/2017/TT-BLDTBXH specifies the wage base for calculating occupational accident and disease benefits as follows:

- The wage base for calculating occupational accident and disease benefits is understood as the monthly wage immediately preceding the month of the occupational accident or disease.
- For cases of occupational disease when retired or no longer working in occupations at risk of occupational disease, the wage base for calculating benefits is the last month's wage contributed to the occupational accident and disease insurance fund of the job that caused the occupational disease.
- For cases where the employee suffers from an occupational accident during the first month of contributing to the occupational accident and disease insurance fund or suffers from an occupational accident or disease in the first returning month of contributing after an interruption due to the termination of the labor contract, it is equal to the wage contributed to the occupational accident and disease insurance fund for that month. For employees who started to participate in social insurance before January 1, 2016, and are subject to state-regulated wage policies, the wage base for calculating benefits is determined by the wage coefficient and allowances (if any) multiplied by the statutory pay rate at the time of benefit entitlement.

- For employees who simultaneously sign labor contracts with multiple employers, the wage base for calculating benefits is the total wage bases for contributions to the occupational accident and disease insurance fund of all labor contracts in the month immediately preceding the month of the last occupational accident or disease but not exceeding 20 times the statutory pay rate.

3. Regulations on formulas applied for calculating occupational accident and disease benefits in Vietnam

Formula for calculating one-time occupational accident and disease benefits:

One-time benefit amount = {5 x L_min + (m-5) x 0.5 x L_min} + {0.5 x L + (t-1) x 0.3 x L}

Formula for calculating monthly occupational accident and disease benefits:

Monthly benefit amount = {0.3 x L_min + (m-31) x 0.02 x L_min} + {0.05 x L + (t-1) x 0.003 x L}

Where:

- L_min: Statutory pay rate at the time of benefit entitlement;

- m: Level of labor capacity reduction due to occupational accident or disease (using absolute value 31 ≤ m ≤ 100).

+ 5 ≤ m ≤ 30: For cases of one-time benefits;

+ 31 ≤ m ≤ 100: For cases of monthly benefits.

- L: Wage contributed to the occupational accident and disease insurance fund according to Clause 7, Article 4 of Circular 26/2017/TT-BLDTBXH;

- t: Total number of years of contributions to the occupational accident and disease insurance fund according to Clause 6, Article 4 of Circular 26/2017/TT-BLDTBXH.

4. Detailed regulations on cases where employers must contribute to occupational accident and disease insurance for employees in Vietnam

Also in Circular 26/2017/TT-BLDTBXH, 03 additional mandatory cases for employers to contribute to the occupational accident and disease insurance fund for employees are stipulated, including:

- Employees during the period of work, training, or business trips domestically and internationally with wages, or those on leave due to work suspension and awaiting work with wages;

- Employees who suffer from occupational accidents in the first month of contributing to the occupational accident and disease insurance fund or in the first returning month of contributing after an interruption due to the termination of the labor contract, the employer must contribute for that month to the occupational accident and disease insurance fund for the employee;

- Employees during the period of leave for treatment and rehabilitation due to occupational accidents or diseases.

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