Lower rates of employers’ compulsory contributions to social insurance fund for occupational accidents and diseases

The new rates are regulated in the Government’s Decree No 58/2020/NĐ-CP, which was issued in May 27, 2020 and takes effect on July 15.

According to the outdated law, employers shall make monthly contributions to the occupational accident and disease benefit fund at the rate equaling 0.5 per cent of the base pay rate for the benefit of each employee.

Since the new law takes effect, the contribution rate, equaling 0.3 per cent of the statutory base payroll, shall be applicable to enterprises that satisfy the conditions.

Enterprises operating in industries with high risks of occupational accidents and diseases shall be entitled to the lower-than-normal contribution rates if they conform to following eligibility requirements:

Firstly, enterprises have submitted periodic reports on workplace accidents, occupational safety and hygiene in an accurate, sufficient and timely manner for three consecutive years prior to the submission year.

Secondly, within the three years prior to the submission date, they have not been subject to any administrative monetary fine or any criminal prosecution for violation against laws on occupational safety, hygiene and social insurance.

Thirdly, frequency rate of occupational accidents in the year preceding the submission year must drop by at least 15 per cent from the average frequency of workplace accidents in three consecutive years prior to the submission year, or have not had any occupational accident three years preceding the submission year.

Additional required documents in unemployment insurance application

The Government’s Decree No 61/2020/NĐ-CP, which made amendments to a number of articles of Decree 28/2015/NĐ-CP, will come into force on July 15.

Three documents which can be included in the unemployment insurance application are:

- The confirmation of the employer including employee’s information; type of signed labour contract; reason, point time of the termination;

-The confirmation of the competent State authority that the enterprise or co-operative dissolves, goes bankrupt or decides to dismiss, relieve from duty or dismiss the titles appointed in case an employee is an enterprise manager or co-operative manager.

- In case the employee does not have the documents certifying the termination of the labour contract because the employer has no legal representative and the person authorised by the legal representative, local departments of planning and investment must issue confirmation.

Postponement of basic wage increase from July 1

The National Assembly decided to postpose the increase of basic wage from July 1, 2020.

The monthly basic wage for civil servants and public employees will be kept at VNĐ1.49 million (US$65). Social security and health insurance benefits based on the payroll will be the same.

The National Assembly has assigned the Government to propose the National Assembly’s Standing Committee make adjustments to basic wage depending on practical conditions./.