Cases eligible for compensation for occupational accidents and diseases in Vietnam

Cases eligible for compensation for occupational accidents and diseases in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Cases eligible for compensation for occupational accidents and diseases in Vietnam

Cases eligible for compensation for occupational accidents and diseases according to Clause 1, Article 3 of Circular 28/2021/TT-BLDTBXH are as follows:

- Workers suffering from occupational accidents causing at least 5% work capacity reduction or death partially caused by these workers; except for cases prescribed in clause 1 Article 4 hereof.

- Workers suffering from occupational diseases causing at least 5% work capacity reduction or death upon working to employers or before retiring, leaving work,

Or transferring to work for other employers (excluding cases that workers suffering from occupational diseases resulting from working for other employers).

2. Principles of compensation for occupational accidents and diseases in Vietnam

Principles of compensation for occupational accidents and diseases according to Clause 2, Article 3 of Circular 28/2021/TT-BLDTBXH are as follows:

- Compensation for occupational accidents shall be given immediately after each accident and not be totaled up;

- Compensation for workers suffering from occupational diseases shall be given on the basis of:

= Percentage (%) of work capacity reduction (whole person impairment – WPI) for the first medical examination in the first accident.

= Increased percentage (%) of work capacity reduction to compensate differential part between the increase in percentage (%) of work capacity reduction compared to the previous result from the second accident onwards.

3. Rate of compensation for occupational accidents and diseases in Vietnam

Rate of compensation for occupational accidents and diseases in Vietnam according to Clause 3, Article 3 of Circular 28/2021/TT-BLDTBXH are as follows:

Compensation for workers suffering from occupational accidents is prescribed in Section 1 is calculated as follows:

- At least a 30 months’ salary shall be paid for workers suffering from a work capacity reduction of at least 81% or for relatives of workers who died in occupational accidents or diseases.

- At least a 1,5 month’s salary shall be paid for workers suffering from a work capacity reduction of between 5% and 10%; if workers suffer from a work capacity reduction of from 11% to 80%, a 0,4 month’s salary shall be added according to the following formula or Appendix I issued together with Circular 28/2021/TT-BLDTBXH for every 1% increase in work capacity reduction percentage:

Tbt = 1,5 + {(a - 10) x 0,4}

Whereas:

- Tbt: amount of compensation for workers suffering from at least 11% work capacity reduction (unit: months’ salary);

- 1,5: amount of compensation for workers suffering from a work capacity reduction of from 5% to 10%;

- a: percentage (%) of work capacity reduction of workers suffering occupational accidents or diseases;

- 0,4: Coefficient of compensation when work capacity reduction percentage increases by 1%.

4. Requirements for receiving occupational accident benefit in Vietnam

According to Article 45 of the Law on Occupational Safety and Health 2015, an employee buying the insurance shall receive occupational accident insurance benefit if the following requirements are satisfied:

- 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;

- He/she suffers a working capacity decrease of at least 5% caused by an accident prescribed in Clause 1 of Article 45 of the Law on Occupational Safety and Health 2015;

- 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 the Law on Occupational Safety and Health 2015.

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