Some Information on Occupational Accident and Disease Insurance

1. Objects subject to occupational accident and disease insurance contributions

Article 2 of the Decree No. 37/2016/ND-CP (effective from July 1, 2016) issued by the Government of Vietnam provides that the subjects required to participate in compulsory occupational accident and disease insurance include:

- Officials and public employees and Vietnamese employees working under labor contracts, specifically:- Officials and public employees as prescribed by the law on officials and public employees;- Officers, professional soldiers of the People's Army; officers, non-commissioned officers, and technical specialists of the People's Public Security; persons engaged in cryptographic work receiving salaries equivalent to military personnel;- Non-commissioned officers and soldiers of the People's Army; non-commissioned officers and soldiers of the People's Public Security serving for a fixed term; military, public security, and cryptographic students being granted living allowances;- Defense workers, public security workers, and other workers in cryptographic organizations;- Persons working under indefinite-term labor contracts and fixed-term labor contracts of 3 months or more, and persons working under fixed-term labor contracts of 1 to less than 3 months, excluding domestic workers;- Enterprise managers, cooperative managers receiving salaries.- Employers, including:- State agencies, public service providers, and people's armed forces units;- Political organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations, and other social organizations;- Foreign agencies, international organizations operating in Vietnam;- Enterprises, cooperatives, individual household businesses, cooperative groups, other organizations, and individuals hiring and employing workers under labor contracts.- Employees who have retired or no longer work in hazardous occupations or jobs.

2. Contribution rates and methods of occupational accident and disease insurance:

Decree No. 37 guides the contribution rates to the occupational accident and disease insurance fund as follows:

- Employers shall monthly contribute as follows:- 1% of the social insurance contribution wage fund (or statutory pay rate of employees).- In case the employer is an enterprise, cooperative, individual household business, or cooperative group operating in agriculture, forestry, fishery, or salt production paying wages based on products or contracts, contributions can be made monthly, quarterly, or semi-annually.- From January 1, 2018 onward, the Government of Vietnam may decide on a lower contribution rate than the above-mentioned 1%.

3. Some benefits to be enjoyed when participating in occupational accident and disease insurance:

To be eligible for the benefits of occupational accident and disease insurance, employees must meet the following conditions:

In terms of occupational accidents:

- Suffer an accident at the workplace and during working hours; outside the workplace or outside working hours when performing tasks at the request of the employer; on the way to and from home to the workplace within a reasonable time and route.- And have a reduction of working capacity by 5% or more caused by the accident.

In terms of occupational diseases:

- Suffer a disease listed in the occupational diseases table issued by the Ministry of Health and the Ministry of Labor, War Invalids, and Social Affairs when working in an environment or occupation with harmful factors;- And have a reduction of working capacity by 5% or more caused by the disease.

Insurance benefits include:

- Monthly or one-time compensation for occupational accidents and diseases, calculated based on the total wages subject to contributions to the occupational accident and disease fund for all labor contracts at the time the accident or disease occurs, but not exceeding the maximum level prescribed by the social insurance law.- Support regimes for vocational retraining; occupational disease examination and treatment; occupational safety and hygiene training; labor function rehabilitation; and other social insurance benefits as prescribed by the social insurance law.

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