[Latest] The level of disaster management fund payment for employees

In order to support the activities in disaster prevention and fighting, employers and employees all pay for the disaster management fund in case the state budget cannot satisfy all the requirements.  So, what is the level of disaster management fund payment for employees?

1. Who must pay the disaster management fund?

In accordance with Clause 3, Article 12, Decree No. 78/2021/ND-CP, Vietnamese citizens aged between full 18 years and the retirement age under normal working conditions specified by the labor law shall make annual contributions for disaster management funds as follows: In particulars:

(1) Cadres, civil servants, public employees, and other persons who work in agencies, organizations, and non-business units of the Party, the State, socio-political organizations, and associations that receive state budget funds for their operation at the central level, in provinces or centrally run cities, districts, towns, provincial cities, or municipal cities (district level), communes, wards, or townships (commune level), special administrative-economic units, and those serving in armed forces.

(2) Workers working under labor contracts in businesses.

(3) Other workers and employees other than those specified in Sections (1) and (2)

Note: The objectives prescribed in Clause 1, Article 13, Decree No. 78/2021/ND-CP must not pay for disaster management funds:

• Persons are eligible for preferential treatment applicable to persons with contributions to the revolution as specified in Article 3 of December 9, 2020, Ordinance No. 02/2020/UBTVQH14 on Preferential Treatment for Persons with Meritorious Services to the revolution.
• Social protection beneficiaries currently enjoy monthly social allowances.
• Non-commissioned officers and soldiers serving for definite terms in the armed forces and currently enjoying cost-of-living allowances
• Students studying under long-term formal training programs at universities, colleges, intermediate schools, and vocational training schools.
• Persons with disabilities or persons with a working capacity loss rate of at least 21% and people suffering fatal diseases or mental illnesses as certified by district- or higher-level hospitals
• Persons who are unemployed or underemployed for at least 6 months in a year.
• Women who are nursing their infants aged under 12 months
• Members of poor households or households living just above the poverty line; members of households in extreme difficulty-hit communes in coastal sandbars, on islands, in region-III communes or extreme difficulty-hit villages in ethnic minority and mountainous areas; members of households suffering serious damage caused by disasters, epidemics, fires, explosions or accidents

2. How much does the disaster management payment level for the employees?

Apart from subjects eligible for contribution exemption, reduction, or payment postponement, other employees shall pay disaster management funds as follows:

(1) Cadres, civil servants, public employees, and other persons who work in agencies, organizations and non-business units of the Party, and those serving in armed forces:

Contribution level/year

=

1.2

x

Basic salary levels

:

The number of monthly working days

For example: Ms. A is the official, works for 22 days, and must pay disaster management funds as follows:

Contribution level = 1/2 x VND 1.49 million: 22 days = VND 33,864/year

(2) Workers working under labor contracts in businesses.

Contribution level/year

=

1.2

x

Region-based minimum wage

:

The number of monthly working days

Note: Employees who sign many labor contracts must pay 01 times in accordance with the contract with the longest duration time.

Currently, the region-based minimum wage prescribed in Decree No. 38/2022/ND-CP is as follows:

Region	Region-based minimum wage (VND/month)
Region I	4,680,000.
Region II	4,160,000.
Region III	3,640,000.
Region IV	3,250,000.

For example: Ms. B is working in Region I, works for 26 days must pay disaster management funds as follows:

Contribution level = 1/2 x VND 4.68 million: 26 days = VND 90,000/year

(3) Other workers and employees other than those specified at Sections (1) and (2)

Contribution level/year = VND 10,000/person

3. What are the fines for employees for failing to pay the disaster management fund?

It is compulsory for the employees for paying disaster management funds. The employee shall be imposed the fines for failing to pay the disaster management fund in accordance with Clause 1, Article 17, Decree No. 03/2022/ND-CP as follow:

- A fine ranging from VND 300,000 to VND 500,000: For failing to make payment to the disaster management fund if the amount payable is less than VND 300,000;

- A fine ranging from VND 500,000 - 01 million: For failing to make payment to the disaster management fund if the amount payable is from VND 300,000 to less than VND 500,000;

- A fine ranging from VND 01 to VND 03: For failing to make payment to the disaster management fund if the amount payable is from VND 500,000 to less than VND 3,000,000;

- A fine ranging from VND 03 to VND 05: For failing to make payment to the disaster management fund if the amount payable is from VND 3,000,000 to less than VND 5,000,000;

- A fine ranging from VND 05 to VND 08: For failing to make payment to the disaster management fund if the amount payable is from VND 5,000,000 to less than VND 10,000,000;

- A fine ranging from VND 08 to VND 12: For failing to make payment to the disaster management fund if the amount payable is from VND 10,000,000 to less than VND 20,000,000;

- A fine ranging from VND 12 - 20 million: For failing to make payment to the disaster management fund if the amount payable is from VND 20,000,000 to less than VND 40,000,000;

- A fine ranging from VND 20 to VND 30: For failing to make payment to the disaster management fund if the amount payable is from VND 40,000,000 to less than VND 60,000,000;

- A fine ranging from VND 30 to VND 40: For failing to make payment to the disaster management fund if the amount payable is from VND 60,000,000 to less than VND 80,000,000;

- A fine ranging from VND 40 - 50 million: For failing to make payment to the disaster management fund if the amount payable is from VND 80,000,000 to less than VND 100,000,000.

Here is the information on the disaster management fund for the employees and the fine levels for failing to make payment to the disaster management fund.