Compensation for occupational accidents and diseases for employees in Vietnam

Compensation for occupational accidents and diseases for employees in Vietnam (Internet image)

This problem, LawNet would like to answer as follows:

1. What is occupational disease?

According to Clause 9, Article 3 of the Law on occupational safety and hygiene 2015, occupational disease means a disease caused by the harmful working condition of an occupation on an employee.

2. Case of compensation for occupational accidents and diseases for employees in Vietnam

Case of compensation for occupational accidents and diseases for employees according to Point b, Clause 1, Article 3 of Circular 28/2021/TT-BLDTBXH is as follows

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).

3. Compensation for occupational accidents and diseases for employees in Vietnam

The rates of compensation for occupational accidents and diseases for employees in Vietnam specified in Clause 3, Article 3 of Circular 28/2021/TT-BLDTBXH are 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%.

Example 1:

- Mr. A has suffered from an occupational disease and taken the first medical assessment to confirm a 15% work capacity reduction. The first compensation for Mr. A shall be calculated as follow:

Tbt = 1,5 + {(15- 10) x 0,4}= 3,5 (months’ salary).

- Periodically, Mr. A had 35% work capacity reduction in the second medical assessment (the work capacity reduction had increased by 20% compared to the first medical assessment). The second compensation for Mr. A shall be calculated as follow:

Tbt = 20 x 0,4 = 8,0 (months’ salary).

Appendix I

4. Time limits for compensations and benefits for employees in Vietnam

Time limits for compensations and benefits as prescribed in Article 7 of Circular 28/2021/TT-BLDTBXH are as follows:

- Decision on compensations or benefits of employers to their workers suffering occupational accidents or diseases must be completed within 05 working days from the days of receiving medical assessment reports of Medical Assessment Councils on percentage of work capacity reduction for serious occupational accidents

Or from the days on which Incident Investigation Teams of provinces or central authorities organize meetings about publicizing minutes of grassroots-level incident investigation for fatal accidents.

- Compensations and benefits must be provided once for workers or their relatives within 05 days from the days on which their employers make decisions on compensation and benefit.

5. Penalties for failing to pay compensations and benefits for employees in Vietnam

According to Point e, Clause 1, Article 23 of Decree 12/2022/ND-CP, a fine ranging from VND 2.000.000 to VND 4.000.000 per employee but not exceeding VND 75.000.000 shall be imposed upon an employer for failing to pay or insufficiently or lately paying compensation or allowances to employees suffering from occupational accidents or diseases in accordance with regulations of law.

*Note: For the employer who is an violating organization, the fine will be doubled from 04 - 08 million VND/employee whose rights are violated, but only a maximum fine of 150 million VND as prescribed in Clause 1 of Article 6 Decree 12/2022/ND-CP.

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