Circular No. 10/2003/TT-BLDTBXH on guiding the implementation of compensation and allowances for workers suffering from occupational accidents or occupational diseases

CIRCULAR

OF THE MINISTRY OF LABOR, INVALIDS AND SOCIAL AFFAIRS
GUIDELINES ON THE IMPLEMENTATION OF COMPENSATION AND SUBSIDY REGIMES FOR WORKERS INJURED IN WORK ACCIDENTS OR SUFFERING FROM OCCUPATIONAL DISEASES

IMPLEMENTING DECREE NO. 110/2002/ND-CP dated December 27, 2002 of the Government on amending and supplementing Decree No. 06/CP dated January 20, 1995 of the Government detailing certain provisions of the Labor Code on labor safety and hygiene; following the comments from the Ministry of Health, the Ministry of Finance, the Vietnam General Confederation of Labor, and other relevant agencies, the Ministry of Labor, Invalids and Social Affairs hereby provides the following guidelines:

I. OBJECTS AND SCOPE OF APPLICATION

The objects subject to the compensation and subsidy regimes for work accidents and occupational diseases as stipulated in Clause 4, Article 1 of Decree No. 110/2002/ND-CP dated December 27, 2002 of the Government include:

1. Workers employed under labor contracts in the following enterprises, agencies, and organizations:

a. Enterprises established and operating under the Law on State-Owned Enterprises, including production and business enterprises, public service enterprises, and enterprises belonging to the armed forces;

b. Enterprises established and operating under the Enterprise Law, including limited liability companies, joint stock companies, partnerships, and private businesses;

c. Enterprises established and operating under the Law on Foreign Investment in Vietnam, including joint ventures and wholly foreign-owned enterprises; Maled. Individual production and business households, cooperatives;

d. Enterprises of political organizations and political-social organizations;

e. Administrative agencies, public service organizations, political organizations, political-social organizations, professional-political-social organizations, other social organizations, and armed forces; including organizations and units permitted to engage in production, business, and services within administrative agencies, public service organizations, the Party, mass organizations, and people's associations that self-finance;

i. Agencies and organizations of foreign countries or international organizations in Vietnam,

g. Semi-public, privately-run, and individual establishments in cultural, health, education, training, scientific, sports, and other public service sectors;

h. Commune, ward, and town health stations;

except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise; Male k. Other organizations employing workers not specified in Point 1 above. Male 2. Civil servants and officials according to the Civil Servants Ordinance.

3. Workers and cooperative members working and receiving wages under labor contracts in cooperatives established and operating under the Cooperative Law.

4. Workers specified in Points 1, 2, and 3 of this item include trainees and apprentices learning skills to work at enterprises, agencies, and organizations, who also fall within the scope of implementation of the compensation and subsidy regimes for work accidents and occupational diseases.

II. COMPENSATION AND SUBSIDY REGIMES

1. Compensation regime:

a. Work accidents or occupational diseases causing a reduction in work capacity of 5% or more, or resulting in death, entitle the worker to compensation:

Work accidents occurring due to hazardous and toxic factors in the workplace causing injury to any part or function of the worker's body or leading to death during the course of work closely related to performing job tasks (including time spent addressing necessary needs during working hours as stipulated by the Labor Code such as rest breaks, mid-shift meals, physical nourishment supplements, menstrual hygiene, bathing, breastfeeding, using the restroom, and preparation and conclusion times for work).

Occupational diseases are illnesses arising from harmful working conditions of the profession affecting the worker according to the list of occupational diseases issued by the Ministry of Health and the Ministry of Labor, Invalids and Social Affairs (Annex 1).

b. Conditions for workers to be entitled to compensation:

For work accidents:

Workers suffering work accidents as stipulated in Sub-clause a, Point 1 above shall be entitled to compensation if the cause of the accident is attributed to the employer's fault as concluded in the accident investigation report.

Compensation shall be provided in separate instances. Each work accident shall be compensated separately without cumulative compensation for previous accidents.

For occupational diseases:

Workers suffering occupational diseases as stipulated in Sub-clause a, Point 1 above shall be entitled to compensation based on the conclusions of the forensic medical examination report or the authorized Medical Appraisal Board in the following cases:

Death due to occupational disease while working or before transferring to another job, before leaving the job, before losing the job, or before retirement.

Regularly undergoing occupational disease medical examinations (as prescribed by the Ministry of Health) to determine the degree of reduced work capacity.

Compensation for occupational diseases shall be provided in separate instances as follows:

The first instance shall be based on the percentage of reduced work capacity determined in the initial examination, and subsequent instances shall be based on the increase in the percentage of reduced work capacity to compensate for the difference in the increased percentage of reduced work capacity compared to the immediately preceding instance.

c. Level of compensation:

The level of compensation for work accidents and occupational diseases as stipulated in Sub-clause b above shall be calculated as follows:

At least 30 months' salary and wage allowances (if applicable) for workers with a reduced work capacity of 81% or more or who have died due to work accidents or occupational diseases.

At least 1.5 months' salary and wage allowances (if applicable) for those with a reduced work capacity of 5% to 10%, and thereafter, for each additional 1% of reduced work capacity between 10% and 81%, an additional 0.4 months' salary and wage allowances (if applicable) shall be added.

Method of calculating compensation:

The method of calculating compensation for workers with a reduced work capacity between 10% and 81% shall be calculated using the formula below or by referring to the table of compensation and subsidies based on the degree of reduced work capacity from 5% to death (Annex 2).

Tbt = 1.5 + (a - 10) x 0.4

Tbt: Level of compensation for workers with a reduced work capacity of over 10% (unit of measurement: months of salary and wage allowances if applicable);

1.5: Level of compensation when the reduced work capacity is between 5% and 10%; {a: Percentage of reduced work capacity of the worker injured in a work accident or suffering from an occupational disease;

Where:

0.4: Compensation coefficient for each 1% increase in reduced work capacity.

Mr. A, suffering from an occupational disease, was assessed at his first appraisal to have a reduced work capacity of 15%. The level of compensation is calculated as follows:

The first level of compensation for Mr. A is:

(15 - 10) x 0.4 = 3.5 (months of salary and wage allowances if applicable).

Example:

Mr. A, suffering from an occupational disease, after the first medical assessment, the degree of work capacity impairment was determined to be 15%. The compensation amount is calculated as follows:

The first compensation payment for Mr. A is:

1.5: Level of compensation when the reduced work capacity is between 5% and 10%; {(15 - 10) x 0,4} = 3,5 (months of salary and allowances if applicable).

Periodically, Mr. A was re-examined for his health, and the second assessment showed a reduction in work capacity of 35% (an increase of 20% compared to the first assessment).

The compensation amount for the second time for Mr. A is:

Tbt = 20 x 0.4 = 8.0 (months of salary and allowances if applicable).

2. Allowance System:

a. Workers who suffer workplace accidents under the following circumstances shall be entitled to benefits:

Workplace accidents as stipulated in Clause a, Point 1 above but caused directly by the worker's fault as concluded in the Accident Investigation Report;

A workplace accident occurs when an employee is injured while traveling from their residence to their workplace, from their workplace back to their residence, or due to objective reasons such as natural disasters, fires, and other risks associated with performing work tasks or when the person responsible for the accident cannot be identified at the workplace.

Benefits are provided on a case-by-case basis. Each workplace accident that occurs will be compensated separately, without cumulative compensation for previous accidents.

b. Benefit levels:

The level of benefit for workplace accidents is calculated as follows:

At least 12 months of salary and allowances (if applicable) for workers whose ability to work has been reduced by 81% or more or who have died due to a workplace accident;

At least 0.6 months of salary and allowances (if applicable) for those whose ability to work has been reduced by 5% to 10%; if the reduction in ability to work is over 10% but less than 81%, it is calculated according to the formula below or by referring to the compensation and benefit table based on the percentage of reduction in ability to work from 5% to death (Annex 2).

Calculation method for benefit levels:

(Similar to the calculation method for compensation and multiplying the result of the compensation calculation by 0.4).

Ttc = Tbt x 0.4

Where:

Ttc: The benefit level for workers whose ability to work has been reduced by more than 10% (unit of measurement: months of salary and allowances if applicable);

0.4: Compensation coefficient for each 1% increase in reduced work capacity.

Example:

Mr. B suffered a workplace accident (cause: direct fault due to Mr. B violating safety regulations). After the first medical examination, the degree of reduction in work capacity was determined to be 15%. The benefit level is calculated as follows:

The first benefit level for Mr. B is:

Ttc = Tbt x 0.4 = 3.5 x 0.4 = 1.4 (months of salary and allowances if applicable).

The second time Mr. B suffered an accident while traveling from the workplace to the residence (the accident is considered a workplace accident). After the second medical examination, the degree of reduction in work capacity was determined to be 20%.

The second benefit level for Mr. B is:

Ttc = 5.50 x 0.4 = 2.20 (months of salary and allowances if applicable).

3. The compensation and benefit levels prescribed herein are minimums. The State encourages employers to provide higher compensation and benefits to workers suffering from workplace accidents or occupational diseases.

4. The salary used as the basis for calculating compensation or benefits is the salary stipulated in the labor contract, averaged over the six consecutive months immediately preceding the occurrence of the workplace accident or the determination of occupational disease, including rank salary, position salary, regional allowance, and position allowance (if applicable) as currently regulated.

In cases where the period of employment is less than six months, the salary of the most recent month or the salary paid at the time of the workplace accident or the determination of occupational disease shall be used to calculate compensation and benefits.

5. Individuals entitled to compensation and benefits for workplace accidents and occupational diseases under this Circular shall still enjoy social insurance benefits for workplace accidents and occupational diseases (if they have mandatory social insurance coverage) as stipulated in Decree No. 12/CP dated January 26, 1995 of the Government on the promulgation of the Social Insurance Regulations.

III. DOCUMENTATION AND PROCEDURES

1. Documentation and procedures:

a) Employers are responsible for preparing documentation for workers who have suffered workplace accidents as follows:

Accident investigation report in accordance with current laws (Annex 3 and Annex 4);

Medical examination report (document determining the degree of reduction in work capacity due to workplace accidents) issued by the authorized Medical Examination Board.

Decision on compensation and benefits by the employer (Annex 5).

b) Employers are responsible for preparing documentation for workers who have suffered occupational diseases as follows:

Occupational disease file of the worker in accordance with current laws (Annex 6);

Report confirming the death of the worker due to occupational disease by the Forensic Medicine Agency or the medical examination report determining the degree of reduction in work capacity due to occupational disease issued by the authorized Medical Examination Board;

Decision on compensation by the employer (Annex 7).

c) The documentation is prepared in three copies:

The employer retains one copy;

The worker (or the relative of the deceased worker) retains one copy;

One copy is sent to the local Department of Labor, Invalids, and Social Affairs where the enterprise, agency, or organization has its headquarters.

2. Time limit for compensation and benefits:

The decision on compensation and benefits by the employer for workers suffering from workplace accidents or occupational diseases must be completed within five days from the date of the Medical Examination Board's report or the Forensic Medicine Agency's report;

The compensation and benefits must be paid in full to the worker suffering from a workplace accident or occupational disease within five days from the date of the employer's decision.

3. Costs for compensating and providing benefits to workers suffering from workplace accidents or occupational diseases are accounted for in the product cost or circulation fee of enterprises, production bases, or businesses. For administrative agencies and public institutions, these costs are included in their regular budget. For households and individuals responsible for compensation and benefits, they must bear the costs.

IV. IMPLEMENTATION

1. Employers are responsible for:

Strengthening measures to improve working conditions, preventive measures, and educational campaigns to raise awareness to minimize workplace accidents and occupational diseases among workers.

Regularly care for the health of workers, conduct regular health check-ups; if occupational diseases are detected, treatment and rehabilitation to restore functions must be carried out for those affected. Organize examinations and send for assessment of the degree of reduced work capacity; provide compensation to workers suffering from occupational diseases (if applicable).

Properly implement policies and regulations regarding compensation for workplace accidents and occupational diseases, and allowances for workplace accidents and occupational diseases for workers or their dependents who have died due to workplace accidents or occupational diseases.

Periodically report on the situation of workplace accidents and occupational diseases, the implementation of compensation and allowance systems for workplace accidents and occupational diseases every six months and annually according to the general report of the Department of Labor, Invalids and Social Affairs and the local trade union where the enterprise, agency, or organization has its main office.

2. The Departments of Labor, Invalids, and Social Affairs shall cooperate with local trade unions to regularly inspect and supervise the implementation of policies and systems concerning workplace safety and hygiene and the provisions of this circular; if errors are found, they shall guide employers to comply with the regulations, and if there are serious violations, strict action must be taken.

3. Ministries, agencies at the ministerial level, People's Committees of provinces and centrally governed cities shall organize the dissemination and guidance on the implementation of this circular to each enterprise, agency, and organization under their management.

4. Individuals identified as having suffered workplace accidents or occupational diseases since January 1, 2003, shall be entitled to compensation and allowances for workplace accidents and occupational diseases as stipulated in this circular.

5. This circular takes effect fifteen days after its publication in the Official Gazette. Circular No. 19/LDTBXH-TT dated 02/8/1997 issued by the Ministry of Labor, Invalids, and Social Affairs regarding the guidelines for implementing compensation for victims of workplace accidents is hereby repealed.

Any difficulties encountered during implementation should be reported to the Ministry of Labor, Invalids, and Social Affairs for study and resolution.