Salary as basis for compensation for occupational accidents

Circular 28/2021/TT-BLDTBXH guiding the Law on Occupational Safety and Health on benefits for employees suffering from occupational accidents and occupational diseases takes effect from March 1, 2022.

Accordingly, the salary is used as a basis for compensation for occupational accidents and diseases. Salary is also used as the basis for payments to employees suffering occupational accidents or diseases and having to quit their jobs for medical treatment and rehabilitation according to the provisions of Clause 3, Article 38 of the Law on Occupational Safety and Health. The employees will receive an average of six consecutive months before the occurrence of the occupational accident or before the occupational disease.

If the work period, apprenticeship, or probationary period is less than six months, the salary used as the basis for compensation and benefits is the average salary of the months preceding the time of the occupational accident or at the time of being diagnosed with an occupational disease.

 Salary is now used as a basis for compensation for occupational accidents

The above-mentioned monthly salary is determined according to each subject as follows:

- For cadres, civil servants, public employees, people in the people's army, the people's police, the monthly salary includes the salary of rank, position and salary-related allowances (if any), for example, position allowance, seniority allowance and overtime allowance that are determined in the labor contract.

- For paid apprentices, the monthly salary is the apprenticeship salary agreed upon by the two parties. In case there is no apprenticeship salary, the salary used as the basis for compensation and allowance for occupational accidents is the minimum salary announced by the Government at the location where the apprentice works.

- For civil servants and public employees during the probationary period, the monthly salary is the probationary salary that is decided by a competent authority.

- For employees who are on a probationary period, the monthly salary is the probationary salary agreed upon by the two parties following the provisions of the applicable Labor Code.

Guidelines for calculating the frequency of occupational accidents to reduce the payment of compulsory social insurance

Effective from March 1, 2022, Circular 27/2021/TT-BLDTBXH guides how to calculate the frequency of occupational accidents so employees’ compulsory social insurance contribution to the Occupational Accident and Occupational Health Fund is reduced.

Article 8 of the circular mentions the calculation of the frequency of occupational accidents as a basis for applying a lower social insurance premium than the normal rate to the Occupational Accident and Occupational Health Insurance Fund.

According to Decree 58/2020/ND-CP, enterprises are proposed to apply social insurance contributions lower than the normal payment to the occupational accident and disease insurance fund, only having to pay 0.3 per cent of the salary fund as a basis for payment of social insurance instead of paying 0.5 per cent when satisfying the prescribed conditions, including the condition on the frequency of occupational accidents in the year preceding the proposed year.

Illustrative image (VSS)

Increase monthly allowance for old and weak commune cadres who quit jobs

Circular 2/2022/TT-BNV guides the adjustment of monthly allowances from January 1, 2022, for commune, ward and township cadres who quit their jobs under Decision 130-CP dated June 20, 1975, of the Government Council and Decision 111-HDBT dated October 13, 1981, of the Council of Ministers.

Specifically, from January 1, 2022, the monthly allowance for retired, old and weak commune-level cadres is adjusted as follow:

- Cadres who are the former Secretaries of the Party Committee, Chairpeople of the Commune People's Committee receive an allowance of VND2,473,000 per month.

Caption 2: Increase the monthly allowance for old and weak commune cadres.

Previously, according to Clause 2, Article 2 of Circular 09/2019/TT-BNV, the benefit level was VND2,116,000 per month.

- For cadres who are former Deputy Secretaries, Vice Chairmen, Standing Party Committee members, Secretaries of the People's Committee, Secretaries of the Commune People's Council, Commune Team Captains or Heads of the Commune Police, the new monthly allowance is VND2,400,000. Previously, the rate was VND2,048,000 per month.

- For the remaining titles, the allowance is VND2,237,000 per month. The previous rate was VND1,896,000 per month.

The Circular 2/2022/TT-BNV takes effect from March 15, 2022, replacing Circular 09/2019/TT-BNV. 

Instructions to increase pension and social insurance allowance

Under Circular 37/2021/TT-BLDTBXH guiding the adjustment of pensions, social insurance benefits and monthly allowances that takes effect from March 15, 2022, from January 1, 2022, the pension, social insurance allowance and monthly allowance will increase by 7.4 per cent for cadres, civil servants, workers, public employees, military personnel, people's police and cipher workers who are enjoying monthly pensions.

Other beneficiaries are commune, ward and township officials who are enjoying monthly pensions and allowances and people who receive a monthly allowance for the loss of working capacity./.