Decree - Important Circular Effective from July 01, 2016

1. Contribution Levels to the Occupational Accident and Disease Insurance Fund

Monthly, the employer contributes 1% of the social insurance salary fund to the Occupational Accident and Disease Insurance Fund.

In cases where the employer operates in the fields of agriculture, forestry, fishery, or salt production and pays salaries based on products or contracts, contributions to the fund are made monthly, every 3 months, or every 6 months.

Additionally, for non-commissioned officers and soldiers of the People's Army; non-commissioned officers and soldiers of the People's Police serving under a fixed-term; military, police, or cryptography students who are receiving living expenses, the employer contributes 1% on the statutory pay rate.

These provisions are stipulated in Decree 37/2016/ND-CP.

2. Determining the Effectiveness of Detailed Regulations

According to the provisions in Decree 34/2016/ND-CP, the effective date of a legal normative document (VBQPPL) must be specified within the document.

Additionally, the Decree also provides guidance on determining the effectiveness of detailed regulations (QDCT) in cases where the VBQPPL being guided is wholly or partly annulled, or determining effectiveness in cases where one QDCT document provides detailed regulations for multiple VBQPPL, but only one or a few of them are annulled.

Specific provisions can be found in Decree 34/2016/ND-CP.

3. Conditions for Using Elderly Workers in Hazardous and Dangerous Jobs

Compared to previous regulations, Decree 39/2016/ND-CP has added some conditions for using elderly workers in strenuous, toxic, and hazardous jobs that negatively affect health, as follows:

- Must have at least 10 years of continuous working experience until before the time of signing the labor contract with the elderly worker;- The employer must organize checks and assessments before signing the labor contract;- There must be a voluntary work application from the elderly worker for the employer to consider before signing the labor contract.

4. Reducing the Maximum Ratio When Using Short-term Capital for Medium and Long-term Loans

Credit institutions, foreign bank branches are allowed to use short-term capital for medium and long-term loans according to the maximum ratio with the schedule specified in Circular 06/2016/TT-NHNN as follows:

- From July 1, 2016, to December 31, 2016, maintain the maximum ratio of 60% (non-bank credit institutions are 100%).- From January 1, 2017, to December 31, 2017, the maximum ratio will drop to 50% (non-bank credit institutions are 90%).- From January 1, 2018, apply the maximum ratio of 40% (non-bank credit institutions are 80%).

5. From July 1, 2016, when registering social enterprises, six new forms will be used as stipulated in Circular 04/2016/TT-BKHDT.

Additionally, several other important Decrees and Circulars will also take effect from July 1, 2016, such as:

- Circular 203/2015/TT-BTC guiding transactions on the stock market issued by the Minister of Finance- Circular 06/2016/TT-BYT prescribing drug labeling issued by the Minister of Health- Circular 11/2016/TT-BTC guiding Decree 42/2015/ND-CP on derivatives and the derivatives market issued by the Minister of Finance- Circular 11/2016/TT-BYT prescribing drug bidding at public healthcare facilities issued by the Minister of Health

See more:

18 Laws Effective from July 1, 2016.

List of 06 Decrees Effective from July 1, 2016.

List of 41 Circulars Effective from July 1, 2016.

List of 03 Joint Circulars Effective from July 1, 2016.

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