Decree No. 58/2020/ND-CP rates of compulsory insurance contributions to the occupational accident fund

DECREE

Prescribing rates of compulsory social insurance premiums payable to the Occupational Accident and Disease Insurance Fund^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 25, 2015 Law on Occupational Safety and Health;

Pursuant to the November 20, 2014 Law on Social Insurance;

At the proposal of the Minister of Labor, Invalids and Social Affairs;

The Government promulgates the Decree prescribing rates of compulsory social insurance premiums payable to the Occupational Accident and Disease Insurance Fund.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes rates of compulsory social insurance premiums payable tothe Occupational Accident and Disease Insurance Fund.

Article 2.Subjects of application

1. Employers specified in Clause 3, Article 2 of the Law on Social Insurance.

2. Other agencies, organizations and individuals involved in the payment of compulsory social insurance premiums to the Occupational Accident and Disease Insurance Fund.

Article 3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Year of proposal means the year of submission of a written proposal on application of a lower-than-normal rate of the compulsory social insurance premium.

2. Report on assessment of occupational safety and health and occupational accident frequency rate reduction means a report assessing conditions that serve as grounds for reduction of premium rates payable to the Occupational Accident and Disease Insurance Fund.

Chapter II

RATES AND METHODS OF PAYMENT OF PREMIUMS TO THE OCCUPATIONAL ACCIDENT AND DISEASE INSURANCE FUND

Article 3.Rates and methods of payment of premiums to the Occupational Accident and Disease Insurance Fund

1. For the employees specified at Points a, b, c, d, dd and h, Clause 1, Article 2, and Clause 2, Article 2 of the Law on Social Insurance, except domestic workers, employers shall make monthly payments calculated based on salary funds used as a basis for payment of social insurance premiums at one of the following rates:

a/ 0.5% of the salary fund used as a basis for payment of social insurance premiums; this rate shall also be applied to cadres, civil servants, public employees, and armed forces personnel of Party agencies, state agencies, socio-political organizations, military and public security forces, and state budget-funded public non-business units;

b/ 0.3% of the salary fund used as a basis for payment of social insurance premiums, applicable to enterprises satisfying the conditions prescribed in Article 5 of this Decree.

2. Employers shall make monthly payments to the Occupational Accident and Disease Insurance Fund at the rate of 0.5% of the basic salary level of each employee prescribed at Point e, Clause 1, Article 2 of the Law on Social Insurance.

3. For employers that are enterprises, cooperatives, business households or cooperative groups operating in agriculture, forestry, fisheries or salt production and pay product-based or piecework-based salaries, monthly premium rates shall correspond to each case prescribed at Point a or b, Clause 1 of this Article. The premium payment may be made on a monthly, quarterly or biannual basis.

Article 5.Cases eligible for lower-than-normal rate of premiums payable to theOccupational Accident and Disease Insurance Fund

Enterprises operating in sectors and trades with a high risk of occupational accidents and diseases shall be eligible for the premium rate prescribed at Point b, Clause 1, Article 4 of this Decree if satisfying the following conditions:

1. Not having been sanctioned for administrative violations in the form of fines or examined for penal liability for violations of the laws on occupational safety and health and social insurance in 3 years, counted up to the time of proposal;

2. Having made periodical reports on occupational accidents and occupational safety and health in an accurate, complete and timely manner in 3 consecutive years preceding the year of proposal;

3. The labor accident frequency rate in the year preceding the year of proposal has been reduced by at least 15% of the average frequency rate of 3 consecutive years preceding the year of proposal or no occupational accidents has occurred in 3 consecutive years preceding the year of proposal.

Chapter III

DOSSIERS, ORDER, PROCEDURES, AND TIME LIMIT FOR PAYMENT OF PREMIUMS TO THE OCCUPATIONAL ACCIDENT AND DISEASE INSURANCE FUND AT THE LOWER-THAN-NORMAL RATE

Article 6.Dossier of proposal for application of the lower-than-normal rate of premiums payable to the Occupational Accident and Disease Insurance Fund

1. A written proposal, made according to Form No. 01 provided in the Appendix to this Decree.

2. A certified copy of the report on assessment of occupational safety and health and occupational accident frequency rate reduction made by an occupational safety and health assessment organization defined in Article 7 of this Decree according to Form No. 02 provided in the Appendix to this Decree.

Article 7.Reports on assessment of occupational safety and health and occupational accident frequency rate reduction used as a basis for consideration of application of the lower-than-normal rate of premiums payable to the Occupational Accident and Disease Insurance Fund

A report on assessment of occupational safety and health and occupational accident frequency rate reduction mentioned in Clause 2, Article 6 of this Decree which is made by an occupational safety and health assessment organization must satisfy the following requirements:

1. The occupational safety and health assessment organization has been granted a grade-C certificate of eligibility for occupational safety and health training (to be eligible for training occupational safety and hygiene practitioners) and such certificate remains valid under regulations.

2. The assessment is carried out by in-house experts of the occupational safety and health assessment organization. Assessment experts must be occupational safety and hygiene trainers who work on a full-time basis at the organization and have undergone further training and passed tests on occupational safety and health assessment operations under regulations of by the Ministry of Labor, Invalids and Social Affairs.

Article 8.Order and procedures for decision on application of lower-than-normal rates of premiums payable to the Occupational Accident and Disease Insurance Fund

1. An employer that wishes to pay the lower-than-normal rate of premium to the Occupational Accident and Disease Insurance Fund shall submit 1 set of dossier prescribed in Article 6 of this Decree directly or online or by post to the Ministry of Labor, Invalids and Social Affairs.

2. Within 30 working days after receiving the employer’s complete dossier, the Ministry of Labor, Invalids and Social Affairs shall:

a/ Send to the provincial-level Department of Labor, Invalids and Social Affairs a written request for assessment of the employer’s observance of the law on occupational safety and health, made according to Form No. 03 provided in the Appendix to this Decree;

b/ Post information on the employer on its portal for public opinion for at least 10 days;

c/ Organize appraisal and issue a decision on the application of the lower-than-normal rate of premium payable to the Occupational Accident and Disease Insurance Fund according to Form No. 04 provided in the Appendix to this Decree; and send or notify the decision directly or by post to the enterprise and the concerned social insurance agency for implementation;

d/ Issue a written reply, clearly stating the reason, if deeming the enterprise ineligible for application of the lower-than-normal premium rate.

Article 9.Period of application of the lower-than-normal rate of premiums payable to the Occupational Accident and Disease Insurance Fund

1. The period of application of the premium rate prescribed at Point b, Clause 1, Article 4 of this Decree is 36 months from the month when the decision on application of the lower-than-normal premium rate takes effect.

2. Within 60 days before expiration of the period of application of the premium rate prescribed in Clause 1 of this Article, if the employer still wishes to continue paying premiums to the Occupational Accident and Disease Insurance Fund at the lower-than-normal rate, it/he/she shall make 1 set of dossier prescribed in Article 6, and carry out procedures prescribed in Article 8 of this Decree.

Article 10.Revocation and cancellation of decisions on adjustment and application of the lower-than-normal rates of premiums payable to the Occupational Accident and Disease Insurance Fund

1. The Ministry of Labor, Invalids and Social Affairs may revoke or cancel decisions on adjustment and application of the lower-than-normal rate of premiums payable to the Occupational Accident and Disease Insurance Fund.

2. A decision on adjustment and application of the lower-than-normal rate of premium payable to the Occupational Accident and Disease Insurance Fund prescribed at Point c, Clause 2, Article 8 of this Decree shall be revoked or canceled in the following cases:

a/ The employer forges or falsifies documents in the dossier of proposal on application of the lower-than-normal rate of premium payable to the Occupational Accident and Disease Insurance Fund;

b/ The employer violates the laws on occupational safety and health and social insurance during the period of application of the lower-than-normal rate of premium payable to the Occupational Accident and Disease Insurance Fund and is sanctioned for administrative violations in the form of fine or examined for penal liability;

c/ The employer fails to make reports on occupational accidents and occupational safety and health practice during the period of application of the lower-than-normal rate of premium payable to the Occupational Accident and Disease Insurance Fund;

d/ The occupational safety and health assessment organization commits fraudulent acts to change conditions serving as the ground for proposing reduction of the premium rate prescribed in Article 5 of this Decree.

3. Employers that commit the acts specified at Point a, Clause 2 of this Article shall:

a/ Refund the difference between the premium amount calculated at the lower-than-normal rate and that calculated at the normal rate for the period of implementation of the decision on adjustment and application of the lower-than-normal rate of premium payable to the Occupational Accident and Disease Insurance Fund;

b/ Pay premiums at the rate of 1% of the salary fund used as a basis for social insurance premium payment for 36 months from the date the decision on adjustment and application of the lower-than-normal rate of premiums payable to the Occupational Accident and Disease Insurance Fund becomes invalid due to revocation or cancellation.

4. Employers that violate the provisions of Points b and c, Clause 2 of this Article shall pay premiums at the rate of 0.5% of the salary fund used as the basis for paying social insurance premiums to the Occupational Accident and Disease Insurance Fund from the date the decision on adjustment and application of the lower-than-normal rates of premiums to the Occupational Accident and Disease Insurance Fund becomes invalid due to revocation or cancellation.

5. In case occupational safety and health assessment organizations commit fraudulent acts:

a/ In case fraudulent acts of occupational safety and health assessment organizations lead to changes in conditions serving as the ground for proposing application of the lower premium rate prescribed in Article 5 of this Decree (in fact, employers fail to satisfy the prescribed conditions), employers shall refund the difference mentioned at Point a, Clause 3 of this Article, and at the same time, pay premiums at the normal rate prescribed in Clause 4 of this Article;

b/ In case fraudulent acts of occupational safety and health assessment organizations do not lead to any changes in conditions serving as the ground for proposing the application of the lower premium rate prescribed in Article 5 of this Decree, employers may continue pay premiums to the Occupational Accident and Disease Insurance Fund at the lower-than-normal rate;

c/ Results of occupational safety and health assessment carried out by occupational safety and health assessment organizations and experts that commit fraudulent acts shall not be recognized for consideration of rates of premiums payable to the Occupational Accident and Disease Insurance Fund within 3 years after conclusion on their fraudulent acts is made; and these organizations and experts shall, depending on severity of their violations, be sanctioned in accordance with the law on sanctioning of administrative violations and examined for penal liability.

Chapter IV

IMPLEMENTATION RESPONSIBILITY

Article 11.Responsibilities of the Ministry of Labor, Invalids and Social Affairs

1. To submit to the Government for consideration of, and decision on, adjustment of the premium rates prescribed in Article 4 of this Decree based on the balancing capacity of the Occupational Accident and Disease Insurance Fund in each period; and organize the implementation of this Decree.

2. To guide contents and programs and organize further training and testing of occupational safety and health assessment operations, and reduction of or exemption from attending further training classes for occupational safety and health assessment experts; and guide methods for calculation of occupational accident frequency rates.

3. To announce on its portal the list of occupational safety and health assessment experts; and acts of law violation in adjustment of the premium rates prescribed in this Decree.

4. To build and manage a database on occupational safety and health assessment to serve the adjustment of rates of premiums payable to the Occupational Accident and Disease Insurance Fund.

5. To provide information, disseminate and guide the implementation of this Decree on the mass media at the central level; and organize further training courses and guide related ministries, sectors, localities, organizations and associations to implement and inspect the implementation of, this Decree.

6. To guide and direct provincial-level Departments of Labor, Invalids and Social Affairs to comply with Point a, Clause 2, Article 8 of this Decree.

Article 12.Responsibilities of the Vietnam Social Security

1. To guide and direct provincial-level social insurance agencies to conduct the adjustment of rates of premiums payable to the Occupational Accident and Disease Insurance Fund.

2. To sum up for reporting to the Ministry of Labor, Invalids and Social Affairs information on implementation of occupational accident and disease insurance regimes and policies; and sum up for reporting to the Ministry of Finance information on management and use of the Occupational Accident and Disease Insurance Fund.

Article 13.Responsibilities of provincial-level People’s Committees

1. To provide information, disseminate, guide, manage and organize the payment of compulsory social insurance premiums to the Occupational Accident and Disease Insurance Fund in their localities under this Decree.

2. To urge and direct provincial-level Departments of Labor, Invalids and Social Affairs and related sectors to coordinate with local socio-political organizations in inspecting and examining the observance of the law on payment of compulsory social insurance premiums to the Occupational Accident and Disease Insurance Fund in their localities.

Article 14.Responsibilities of occupational safety and health assessment organizations

1. To appoint experts to participate in further training classes on occupational safety and health operations; to assign qualified experts on the list published on the Ministry of Labor, Invalids and Social Affairs’ portal to conduct assessment as prescribed in Clause 2, Article 7 of this Decree.

2. To formulate a specific assessment process suitable to each to-be-assessed enterprise.

3. To formulate reports on assessment of occupational safety and health and occupation accident frequency rate reduction which shall serve as the ground for consideration for application of the lower-than-normal rate of premiums payable to the Occupational Accident and Disease Insurance Fund. Such a report shall be made according to Form No. 02 provided in the Appendix to this Decree.

4. To coordinate with, and provide dossiers to, state competent agencies when so requested during the process of assessment and appraisal.

5. To make annual reports and unscheduled reports when requested to the Ministry of Labor, Invalids and Social Affairs, according to Form No. 05 provided in the Appendix to this Decree.

Article 15.Rights and responsibilities of employers

1. To refund the difference and pay premiums at the rates prescribed in Clauses 3 and 4, and Point a, Clause 5, Article 10 of this Decree.

2. To appoint persons to coordinate with, and supervise the assessment by, occupational safety and health assessment organizations so as to ensure the latter’s compliance with law during the process of making assessment reports.

3. To provide dossiers and documents relating to occupational safety and health during the assessment process.

4. To retain sufficient dossiers which are used as grounds for proposing the rates of premiums payable to the Occupational Accident and Disease Insurance Fund; and provide dossiers to state competent agencies when so requested.

5. To lodge complaints and denunciations about acts of law violations in the payment of premiums to the Occupational Accident and Disease Insurance Fund.

6. To pay assessment expenses as agreed upon with occupational safety and hygiene assessment organizations.

Chapter V

IMPLEMENTATION PROVISIONS

Article 16.Effect

1. This Decree takes effect on July 15, 2020.

2. The provisions in the Government’s Decree No. 44/2017/ND-CP of April 14, 2017, prescribing the rate of compulsory social insurance premiums payable to the Occupational Accident and Disease Insurance Fund, and Point b, Clause 1, Article 13 of the Government’s Decree No. 143/2018/ND-CP of October 15, 2018, detailing the Law on Social Insurance and the Law on Occupational Safety and Health regarding compulsory social insurance for employees being foreign citizens working in Vietnam, cease to be effective on the effective date of this Decree.

Article 17.Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC