Rates and methods of contribution to the occupational accident and disease benefit fund in Vietnam

Rates and methods of contribution to the occupational accident and disease benefit fund in Vietnam (Internet image)

1. Employees receiving the insurance benefits in Vietnam

According to Article 43 of the Law on occupational safety and hygiene 2015, the employees receiving the insurance benefits are as follows:

(1) The employees receiving the insurance benefits prescribed in this Section are employees subject to compulsory social insurance as prescribed in Point a, b, c, d, dd, e and h Clause 1 Article 2 and employers as prescribed in Clause 3 Article 2 of the Law on Social Insurance, including:

(1.1) Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

(1.2) Persons working under labor contracts with a term of between full 1 month and under 3 months;

(1.3) Cadres, civil servants and public employees;

(1.4) Defense workers, public security workers and persons doing other jobs in cipher organizations;

(1.5) Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

(1.6) Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

(1.7) Salaried managers of enterprises and cooperatives;

(2)  If an employee concludes labor contracts with multiple employers, each employer shall pay insurance premiums for the labor contract concluded with the employee who is subject to compulsory social insurance.

When an employee has an occupational accident or suffers from an occupational disease, he/she shall receive the insurance benefit as prescribed by the Government.

2. Requirements for receiving occupational accident benefit in Vietnam

Requirements for receiving occupational accident benefit in Vietnam according to Article 45 of Law on occupational safety and hygiene 2015 are as follows:

(1) He/she has an accident:

- At the workplace and during the working time, even if he/she does necessary daily activities at the workplace or during the working time as prescribed in the Labor Code and internal regulations of the business entity, including break time, mid-shift meal, in-kind meal, menstrual hygiene, bathing, breastfeeding or personal hygiene;

- Outside the workplace or beyond working time when he/she does works assigned by their employer or the person authorized by the employer;

- On the route between home and work within a reasonable period of time and route;

(2) He/she suffers a working capacity decrease of at least 5% caused by an accident prescribed in item (1)

(3) The employee will not be covered by the Insurance fund if he/she has an accident caused by one of the reasons prescribed in Clause 1 Article 40 of Law on occupational safety and hygiene 2015.

+ Conflict between the employee and the person causing the accident not relating their works or tasks;

+ The employee deliberately ruins their own health;

+ The employee uses drugs or other narcotic substances against of law.

3. Rates and methods of contribution to the occupational accident and disease benefit fund in Vietnam

Article 4 of Decree 58/2020/ND-CP stipulates rates and methods of contribution to the occupational accident and disease benefit fund as follows:

- Based on the statutory base payroll, the employer shall pay monthly social insurance contributions for the benefit of their insured employees in accordance with items (1.1), (1.2), (1.3), (1.4), (1.5), (1.6) in Section 1, except domestic workers, at one of the following rates:

+ Normal contribution rate shall be equal to 0.5% of the statutory base payroll, which is applicable to employees who are public officials, civil servants or public employees, and members of the armed forces under the control of authorities of the Party and State, socio-political organizations, military, public security forces or public service units funded by the state budget;

+ The contribution rate equaling 0.3% of the statutory base payroll shall be applicable to enterprises that satisfy the conditions specified in Article 5 of Decree 58/2020/ND-CP:

++ Within three years prior to the submission date, they have not been subject to any administrative monetary fine or any criminal prosecution for their violation against laws on occupational safety, hygiene and social insurance;

++ They have submitted periodic reports on workplace accidents, occupational safety and hygiene in an accurate, sufficient and timely manner within three consecutive years prior to the submission year;

++ Frequency rate of occupational accidents in the year preceding the submission year must drop by at least 15% of the average frequency of workplace accidents in 3 consecutive years prior to the submission year, or have not had any occupational accident 3 years preceding the submission year.

- Employers shall make monthly contributions to the occupational accident and disease benefit fund at the rate equaling 0.5% of the base pay rate for the benefit of each employee as provided in item (1.7) in Section 1.

- As for employers who are enterprises, cooperatives, sole proprietary business households or cooperative alliances operating in such fields as agriculture, forestry, fishery or salt production, if they receive piecework or lump-sum pay, the monthly contribution rate shall be bound to corresponding requirements imposed in each circumstance specified in points a and b of clause 1 of Article 4 of Decree 58/2020/ND-CP.

Contributions shall be made on a monthly, quarterly or biannual basis.

Quoc Dat

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