Circular No. 04/2015/TT-BLDTBXH guiding the implementation of compensation, allowances, and medical expenses for employees suffering from occupational accidents or occupational diseases.

 

CIRCULAR

Guidelines for implementing compensation, allowances, and medical expenses for employers towards employees who suffer from workplace accidents or occupational diseases bị tai nạn lao động, bệnh nghề nghiệp

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to Decree No. 45/2013/NĐ-CP dated May 10, 2013 of the Government detailing certain provisions of the Labor Code on working hours, rest periods, labor safety, and hygiene;

Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

At the proposal of the Director of the Occupational Safety and Health Inspectorate;

The Minister of Labor, Invalids, and Social Affairs issues this Circular guiding the implementation of compensation, allowances, and medical expenses for employers towards employees who suffer from workplace accidents or occupational diseases.

Article 1. Scope of Regulation

This Circular guides the implementation of compensation, allowances, and medical expenses for employers towards employees who suffer from workplace accidents or occupational diseases.

Article 2. Applicability

1. Agencies, organizations, enterprises, cooperatives, and individuals employing workers (hereinafter referred to collectively as employers), including:

a) Administrative agencies, public service units, and people's armed forces units;

b) Political organizations, political-social organizations, social-professional organizations, and other social organizations;

c) Enterprises under all economic sectors;

d) Cooperatives;

e) Agencies, organizations, and individuals from foreign countries or international organizations with offices located within the territory of the Socialist Republic of Vietnam;

f) Other organizations and individuals employing workers.

2. Workers employed under labor contracts and persons undergoing vocational training, internship, or probation for employment purposes (hereinafter referred to collectively as workers).

3. Cadres, civil servants, public officials, members of the People's Army, and People's Police shall be subject to the same regulations as workers stipulated in this Circular, except where relevant legal documents specifically provide otherwise for each category.

Article 3. Compensation for workplace accidents and occupational diseases

1. Eligible recipients for compensation:

a) Workers suffering from workplace accidents resulting in a reduction in work capacity of 5% or more, or death, except as provided in Point a Clause 1 Article 4 of this Circular;

b) Workers diagnosed with occupational diseases by the Medical Appraisal Board or authorized forensic agencies shall be eligible for compensation in the following circumstances:

- Death caused by occupational disease while working or before transferring to another job, before leaving the job, before losing the job, or before retirement;

- Reduction in the ability to work by 5% or more due to occupational disease based on the results of regular occupational disease medical examinations (as prescribed by the Ministry of Health).

2. Principles of compensation:

a) Compensation for workers injured in workplace accidents shall be provided in separate instances. Each accident will result in individual compensation, without cumulative payments for previous incidents;

b) Compensation for workers suffering from occupational diseases is implemented once per occurrence according to the following rules:

- The first time based on the level (%) of reduced ability to work (percentage of bodily impairment) determined in the initial examination;

- Subsequent times based on the increased level (%) of reduced ability to work to compensate for the difference compared to the previous appraisal result.

3. Amount of compensation:

The level of compensation for workers suffering from work-related accidents or occupational diseases as specified in Points a and b Clause 1 of this Article is calculated as follows:

a) At least 30 months' salary for workers whose work capacity has been reduced by 81% or more, or who have died due to workplace accidents or occupational diseases;

b) At least 1.5 months' salary for those whose work capacity has been reduced by 5% to 10%; if the reduction is between 11% and 80%, an additional 0.4 months' salary will be added for every 1% increase, calculated according to the formula below or referenced in Table 2 attached to this Circular:

Tbt = 1.5 + {(a - 10) x 0.4}

Where:

- Tbt: Compensation amount for workers with a reduction in work capacity of 11% or more (unit: months' salary);

- 1.5: Level of compensation for a reduction in ability to work by 5% to 10%;

- a: Percentage of reduction in ability to work of workers suffering from work-related accidents or occupational diseases;

- 0.4: Compensation factor for each 1% increase in the reduction in ability to work.

Example 1:

- Mr. A suffers from an occupational disease, his first health assessment determined a reduction in work capacity of 15%. The initial compensation amount for Mr. A is calculated as follows:

Tbt = 1.5 + {(15 - 10) x 0.4} = 3.5 (months' salary).

- In subsequent periodic health assessments, Mr. A's reduction in work capacity was determined to be 35% (an increase of 20% compared to the first assessment). The second compensation amount for Mr. A is:

Tbt = 20 x 0.4 = 8.0 (months' salary).

Article 4. Compensation for work-related accidents

1. Workers who suffer from work-related accidents resulting in a reduction in their working capacity of 5% or more, or death, in the following cases, shall be entitled to compensation:

a) Work-related accidents where the cause of the accident is entirely due to the fault of the worker themselves, as concluded in the accident investigation report;

b) Accidents occurring when workers travel from their residence to their workplace or from their workplace back to their residence at reasonable locations and times (based on the accident resolution file of the police agency or confirmation letter from local authorities or the neighborhood police station where the accident occurred).

2. Principles of compensation: The compensation shall be provided on a case-by-case basis; each work-related accident that occurs will result in separate compensation, without cumulative compensation for previous accidents.

3. Levels of compensation:

a) At least 12 months' salary for workers whose working capacity has been reduced by 81% or more, or who have died due to a work-related accident;

b) At least 0.6 months' salary for those whose working capacity has been reduced by 5% to 10%; if the reduction in working capacity is between 11% and 80%, refer to the compensation table in Appendix 2 issued with this Circular or calculate using the formula below:

Ttc = Tbt x 0.4

Where:

- Ttc: Level of compensation for workers whose working capacity has been reduced by over 10% (unit of measurement: months' salary);

- Tbt: Level of compensation for those whose working capacity has been reduced by over 10% (unit of measurement: months' salary).

Example 2:

- Mr. B suffered his first work-related accident due to Mr. B's violation of safety regulations, not due to anyone else's fault. A health assessment determined that Mr. B's working capacity was reduced by 15% due to this accident. The first level of compensation for Mr. B is: Ttc = Tbt x 0.4 = 3.5 x 0.4 = 1.4 (months' salary).

- In the subsequent accident, Mr. B was injured while traveling from his workplace back to his residence (investigated and confirmed to fall under the circumstances eligible for compensation as stipulated in Clause 1 of this Article). A health assessment determined that Mr. B's working capacity was reduced by 20% due to this accident. The second level of compensation for Mr. B is:

Ttc = Tbt x 0.4 = 5.5 x 0.4 = 2.2 (months' salary).

Article 5. Compensation and assistance in special cases

1. In cases where workers suffer accidents while performing tasks or following lawful instructions from employers outside the scope of their agencies, enterprises, organizations, cooperatives, and such accidents are caused by the fault of others (not the worker themselves) or the person responsible cannot be identified, the employer must still compensate the worker according to the provisions of Article 3 of this Circular.

2. In cases where workers suffer accidents while traveling from their residence to their workplace or from their workplace back to their residence at reasonable locations and times, and such accidents are caused by the fault of others (not the worker themselves) or the person responsible cannot be identified, the employer must still provide compensation to the worker according to the provisions of Article 4 of this Circular.

3. In cases where employers have purchased accident insurance for workers suffering from work-related accidents from insurance service providers, the injured workers shall receive compensation and assistance payments according to the contracts signed with the insurance service providers. If the amount paid by the insurance service provider to the injured worker is lower than the levels specified in Articles 3 and 4 of this Circular, the employer must pay the difference so that the total amount received by the injured worker or their relatives is at least equal to the compensation and assistance levels specified in Articles 3 and 4 of this Circular.

4. If employers fail to contribute to social insurance for workers required to participate in mandatory social insurance under the Social Insurance Law, in addition to compensating and providing assistance according to the provisions of Articles 3 and 4 of this Circular, employers must also pay social insurance benefits on behalf of the social insurance agency for workers suffering from work-related accidents or occupational diseases as follows:

a) For workers whose working capacity has been reduced by 5% to 30%, employers must provide a one-time work-related accident and occupational disease allowance at the level prescribed by the Social Insurance Law;

b) For workers whose working capacity has been reduced by 31% or more, employers must provide a monthly work-related accident and occupational disease allowance at the level prescribed by the Social Insurance Law. Payment may be made in a lump sum or monthly, as agreed upon by the parties involved.

Article 6. Wages as the basis for compensation and occupational injury allowance

1. The wages serving as the basis for calculating compensation or occupational injury allowance are the average wages of the six consecutive months immediately preceding the occurrence of the occupational injury or the diagnosis of an occupational disease. If the period of work, apprenticeship, training, probationary period, or internship is less than six months, the wages serving as the basis for calculating compensation or allowance shall be the average wages of the preceding months immediately before the occurrence of the occupational injury or the diagnosis of the occupational disease.

2. The monthly wage level specified in Clause 1 of this Article shall be determined specifically for each category as follows:

a) For civil servants, public officials, members of the People's Army, and the People's Public Security Force, the wages serving as the basis for calculating compensation or occupational injury allowance are the rank-based wages, position-based wages, position allowances, seniority allowances, and seniority allowances exceeding the standard (if applicable);

b) For workers under labor contracts, the wages serving as the basis for calculating compensation or occupational injury allowance are the wages recorded in the labor contract, including both job-based wages, position-based wages, and wage allowances (if applicable);

c) For workers undergoing vocational training or apprenticeship at organizations, institutions, or enterprises without a set vocational training or apprenticeship wage, the wages serving as the basis for calculating compensation or occupational injury allowance are the minimum regional wage published by the Government at the location where the worker is employed; if the organization, institution, or enterprise has a vocational training or apprenticeship wage, the wages serving as the basis for calculating compensation or allowance for workers undergoing vocational training or apprenticeship are the agreed-upon vocational training or apprenticeship wages between both parties;

d) For workers during the probationary or internship period, the wages serving as the basis for calculating compensation or occupational injury allowance are the agreed-upon probationary wages according to Article 28 of the Labor Code or the internship wages as decided by the competent authority.

Article 7. Compensation and Allowance Files

1. For workers suffering from occupational injuries falling within the categories eligible for compensation and allowance as stipulated in Clause 1 of Article 3, Clause 1 of Article 4, and Article 5 of this Circular, the employer shall be responsible for establishing the compensation and allowance file, which includes the following documents:

a) The accident investigation report, the minutes of the meeting announcing the accident investigation report of the grassroots-level, provincial, or centrally-administered city Occupational Injury Investigation Team, or the central Occupational Injury Investigation Team;

b) The medical examination report (document determining the degree of reduced working capacity due to the occupational injury) or the report confirming the death of the worker issued by the forensic agency or the court's declaration of death for cases of disappearance;

c) A legally valid copy of the scene inspection report, the accident site diagram prepared by traffic police or a confirmation letter from the local police station or a confirmation letter from the local government;

d) The employer's decision on compensation and occupational injury allowance (according to the form attached as Appendix 3 to this Circular).

2. For workers suffering from occupational diseases as stipulated in Clause 1 of Article 3 of this Circular, the employer shall be responsible for establishing the compensation file, which includes the following documents:

a) The worker's occupational disease file in accordance with current laws;

b) The report confirming the death of the worker due to an occupational disease issued by the forensic agency or the medical examination report (document determining the degree of reduced working capacity due to the occupational disease) and the conclusion of the authorized Medical Examination Board;

c) The employer's decision on compensation for occupational disease (according to the form attached as Appendix 4 to this Circular).

3. The file shall be established in three copies, of which:

a) The employer retains one copy;

b) The worker suffering from an occupational injury or occupational disease (or the worker's relatives) retains one copy;

c) One copy is sent to the Department of Labor, Invalids, and Social Affairs of the locality where the enterprise, organization, or institution has its main office within ten days from the date of issuance of the occupational injury compensation or occupational disease compensation decision or occupational injury allowance.

Article 8. Time limit for compensation and assistance payments

1. The decision on compensation and assistance by the employer for workers who have suffered work-related accidents or occupational diseases must be completed within five working days from the date of the Medical Examination Board's report on the degree of reduction in labor capacity for serious work-related accidents, or from the date of the provincial or central-level Work Accident Investigation Team's meeting to announce the Work Accident Investigation Report at the workplace for fatal work-related accidents.

2. The compensation and assistance money must be paid in one lump sum to the worker or their relatives within five days from the date the employer issues the decision.

Article 9. Medical Expenses

1. For workers participating in mandatory health insurance, the employer must pay the shared medical expenses and those not covered by health insurance from first aid, emergency care until stable treatment for workers suffering from work-related accidents or occupational diseases.

2. For workers not participating in health insurance, the employer must pay all medical expenses from first aid, emergency care until stable treatment for workers suffering from work-related accidents or occupational diseases.

3. In addition to the cases stipulated in Clauses 1 and 2 of this Article, it is encouraged that employers cover medical expenses for other work-related injuries or illnesses.

Article 10. Implementation Organization

1. The levels of compensation and assistance prescribed in this Circular are the minimum levels. The State encourages employers to provide higher levels of compensation and assistance to workers suffering from work-related accidents or occupational diseases than those prescribed in this Circular.

2. Compensation and assistance costs, and medical expenses for workers suffering from work-related accidents or occupational diseases shall be included in the regular operating costs and production and business costs of agencies, enterprises, and organizations, and are considered reasonable expenses when calculating corporate income tax according to the Corporate Income Tax Law.

3. Workers entitled to compensation, assistance, and medical expenses for work-related accidents or occupational diseases under this Circular will still enjoy social insurance benefits for work-related accidents or occupational diseases as prescribed in the Social Insurance Law (if they participate in mandatory social insurance).

Article 11. Responsibilities of the Employer

1. Establish files and implement compensation and assistance systems for workers or their relatives in accordance with the provisions of this Circular.

2. Regularly care for the health of workers, conduct regular health check-ups (organize examinations, send for assessment of the degree of reduction in labor capacity); provide compensation to workers suffering from work-related accidents or occupational diseases (if applicable); provide treatment and rehabilitation for workers suffering from work-related accidents or occupational diseases (if applicable) who have reduced labor capacity.

Article 12. Responsibilities of the Department of Labor, Invalids and Social Affairs

1. Coordinate with relevant agencies to disseminate this Circular to enterprises operating within the local area.

2. Guide, inspect, monitor the implementation of compensation and assistance systems and medical expenses for work-related accidents and occupational diseases by employers within the local area.

3. Receive and retain files on compensation and assistance for work-related accidents and occupational diseases submitted by employers.

Article 13. Effective Date

1. This Circular takes effect from March 20, 2015.

2. Repeal Circular No. 10/2003/TT-BLDTBXH dated April 18, 2003 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of compensation and assistance for workers suffering from work-related accidents or occupational diseases.

During the implementation process, if there are any difficulties, please reflect them to the Ministry of Labor, Invalids and Social Affairs for timely supplementary guidance.