Period of time and monthly salary as the basis for calculation of occupational accident and disease benefits in Vietnam

Period of time and monthly salary as the basis for calculation of occupational accident and disease benefits in Vietnam (Internet image)

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

1. Period of time and monthly salary as the basis for calculation of occupational accident and disease benefits in Vietnam

According to Article 11 of Decree 88/2020/ND-CP stipulates the period of time and monthly salary as the basis for calculation of occupational accident and disease benefits in Vietnam as follows:

- The period of time as the basis for calculation of occupational accident or occupational disease benefits is total period of payment of insurance premiums to the Insurance Fund, except the overlapping period of different employment contracts over which insurance premiums are paid;

If the period of insurance premium payment has intervals, they shall be accumulated; the period of time over which the employee held any of the titles prescribed in the Decree 09/1998/ND-CP and was entitled to social insurance benefits shall be included in the period for calculation of occupational accident or occupational disease benefits.

- For the period of time over which an employee takes leave and enjoys his/her sickness benefits as prescribed by the Law on Social insurance and over which an employee does not work or takes unpaid leave for at least 14 working days in a month:

The employer is not required to pay insurance premiums to the Insurance Fund for such month and such month is not included in the period of time over which insurance premiums are paid to the Insurance Fund, except for the case specified in Clause 2 Article 3 of Decree 88/2020/ND-CP.

- For the period of time over which an employee takes maternity leave as prescribed by the Law on Social insurance for at least 14 days in a month, the employer is not required to pay insurance premiums to the Insurance Fund, but that month is included in the period of time over which insurance premiums are paid to the Insurance Fund. To be specific:

+ If the employment contract of an employee expires while he/she is on maternity leave, the period of entitlement to maternity benefits beginning from the time off to the expiry of the employment contract shall be included in the period of time over which insurance premiums are paid to the Insurance Fund, but the period of maternity leave after the expiry of the employment contract shall not be included in the period of premium payment.

+ The period of time over which an employee received maternity benefits and terminated her employment contract or working contract or resigned before the time of childbirth or adoption of a child aged under 6 months under Clause 4 Article 31 of the Law on Social insurance shall not be included in the period of time over which insurance premiums are paid to the Insurance Fund;

+ If a female employee goes back to work before expiry of her maternity leave as prescribed, the period of time over which the employee is entitled to maternity benefits beginning from the time off to the time of returning to work before expiry of her maternity leave shall be included in the period of time over which insurance premiums are paid to the Insurance Fund, from the time of returning to work before expiry of her maternity leave, the employee is still entitled to maternity benefits until expiry of the period mentioned in Clause 1 or Clause 3 Article 34 of the Law on Social insurance and the employer is still required to pay insurance premiums to the Insurance Fund;

+ If a father or direct fosterer, intended parent who is entitled to maternity benefits does not take leave, the employer is still required to pay insurance premiums to the Insurance Fund.

- If an employee is kept in temporary detention or is suspended from work, thereby resulting in suspension of participation in the Insurance Fund but if full premiums are then paid for the period of temporary detention or work suspension in accordance with regulations of the Law on Social insurance, the period of payment of full premiums shall be included in the period of time over which such premiums were paid.

- The insurance premium payment period that is taken to receive lump-sum social insurance payout shall not be included in the period of time as the basis for calculation of occupational accident and disease benefits.

- The total number of years of payment of insurance premiums to the Insurance Fund shall be determined as follows:

+ If an employee meets with an occupational accident, the total number of years of payment of premiums to the Insurance Fund is determined until the month preceding the month of the occupational accident;

+ If an employee suffers from an occupational disease, the total number of years of payment of premiums to the Insurance Fund is determined until the month preceding the month of doing the job causing such occupational disease;

+ If an employee enters into employment contracts simultaneously with multiple employers, the overlapping period of different employment contracts over which insurance premiums are paid to the Insurance Fund shall not add up;

+ A year means a period of 12 months of payment of insurance premiums to the Insurance Fund.

- Salary for payment of premiums into the Insurance Fund as the basis for calculation of occupational accident or disease benefits shall be determined as follows:

+ The salary is the monthly salary of the month immediately preceding the month in which the occupational accident occurred or the employ met with the occupational disease;

If an employee meets with an occupational accident within the first month of payment of his/her insurance premiums to the Insurance Fund or meets with an occupational accident or suffers from an occupational disease within the first month of returning to work and payment of his/her insurance premiums to the Insurance Fund after the period of interruption of insurance premium payment due to termination of the employment contract, the salary as the basis for calculation of benefits shall be the salary of such month;

+ The salary is the salary of the last month in which premiums were paid to the Insurance Fund for a job causing the occupational disease in the case where the employee contracted the disease after retirement or after no longer working in the job posing a risk of occupational disease;

+ If an employee whose salary is paid by the State started to participating in social insurance before January 1, 2016, the monthly salary as the basis for calculation of benefits shall be determined according to the coefficient and allowance (if any) multiplied by (x) statutory pay rate at the time of entitlement to the allowance;

+ If an employee enters into employment contracts simultaneously with multiple employers, the salary as the basis for calculation of benefits is the sum of the salaries as basis for payment of insurance premiums to the Insurance Fund of all employment contracts in the month preceding the month of the last occupational accident or occupational disease but not exceeding 20 times the statutory pay rate.

2. Regulations on participation in the Insurance Fund in Vietnam

Regulations on participation in the Insurance Fund in Vietnam according to Article 10 of Decree 88/2020/ND-CP are as follows:

- If an employee who is sent to study or for probation or to work domestically or overseas and still salaried or whose work is suspended or who is awaiting job but still salaried, he/she must still pay his/her insurance premiums to the Insurance Fund for the period of the employee's study, probation, working trip, work suspension or waiting for work.

- If an employee meets with an occupational accident within the first month of payment of his/her insurance premiums to the Insurance Fund or within the first month of returning to work and payment of his/her insurance premiums to the Insurance Fund after the period of interruption of insurance premium payment due to termination of the employment contract, the employer must pay the insurance premiums to the Insurance Fund for such months.

- While an employee has taken leave period due to an occupational accident or occupational disease for treatment and functional rehabilitation, his/her employer must pay full salary to the employee under the employment contract as prescribed in Clause 3 Article 38 of Law on Occupational Safety and Health.

- The employer must full pay occupational accident or occupational disease insurance premiums, including the prescribed interests regarding an employee who is eligible for occupational accident and disease benefits or who terminates his/her employment contract or job contract to provide benefits to the employee in a timely manner.

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