Decree No. 58/2020/ND-CP on the contribution rate for mandatory social insurance into the Work Injury and Occupational Disease Insurance Fund

DECREE

Regulations on the Contribution Rate for Compulsory Social Insurance into the Occupational Accident and Occupational Disease Insurance Fund

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

Pursuant to the Labor Safety Law dated June 25, 2015;

Pursuant to Resolution No. 104/2023/QH15 dated November 10, 2023 of the National Assembly on the state budget estimate for 2024;

Decree No. 07/2021/NĐ-CP

The Government promulgates this Decree to stipulate the contribution rate for compulsory social insurance into the Occupational Accident and Occupational Disease Insurance Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the contribution rate for compulsory social insurance into the Occupational Accident and Occupational Disease Insurance Fund.

Article 2. Applicability

1. Employers as prescribed in Clause 3, Article 2 of the Social Insurance Law.

2. Agencies, organizations, and other individuals related to the implementation of contributions into the Occupational Accident and Occupational Disease Insurance Fund under compulsory social insurance.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Proposing year refers to the year when the proposal for applying a lower contribution rate than the normal rate is submitted.

2. Report on occupational safety and health work and reduction in frequency of occupational accidents is a report evaluating conditions serving as the basis for reducing the contribution rate into the Occupational Accident and Occupational Disease Insurance Fund.

Chapter II

CONTRIBUTION RATE AND CONTRIBUTION METHOD INTO THE OCCUPATIONAL ACCIDENT AND OCCUPATIONAL DISEASE INSURANCE FUND

Article 4. Contribution rate and contribution method into the Occupational Accident and Occupational Disease Insurance Fund

a) The normal contribution rate is 0.5% of the payroll used as the basis for social insurance contributions; simultaneously applicable to employees who are civil servants, public officials, and members of the armed forces belonging to agencies of the Party, State, political-social organizations, military, police, and public institutions funded by the state budget;

b) A contribution rate of 0.3% of the payroll used as the basis for social insurance contributions shall be applied to enterprises meeting the conditions stipulated in Article 5 of this Decree.

3. Employers who are enterprises, cooperatives, individual business households, and cooperative groups operating in agriculture, forestry, fisheries, salt production, and paying wages based on output or contracts shall contribute monthly at the corresponding rate according to the conditions specified in Points a and b, Clause 1 of this Article; the contribution method shall be implemented monthly, every three months, or every six months.

Article 5. Cases eligible for applying a lower contribution rate than the normal rate into the Occupational Accident and Occupational Disease Insurance Fund

Enterprises operating in industries with high risks of occupational accidents and occupational diseases may apply the contribution rate prescribed in Point b, Clause 1, Article 4 of this Decree if they meet the following conditions:

1. In the three years prior to the proposing year, they have not been subject to administrative penalties involving fines, nor have they been criminally prosecuted for violations of laws on occupational safety and health and social insurance;

2. They have accurately and fully reported occupational accidents and occupational safety and health status on a regular basis within the three consecutive years immediately preceding the proposing year;

3. The frequency of occupational accidents in the year immediately preceding the proposing year must decrease by 15% or more compared to the average frequency of occupational accidents over the three consecutive years immediately preceding the proposing year, or there must be no occupational accidents occurring from the three consecutive years immediately preceding the proposing year.

Chapter III

DOCUMENTS, PROCEDURES, AND TIME LIMIT FOR APPLYING A LOWER CONTRIBUTION RATE THAN THE NORMAL RATE INTO THE OCCUPATIONAL ACCIDENT AND OCCUPATIONAL DISEASE INSURANCE FUND

Article 6. The application file for a lower contribution rate to the Work Injury and Occupational Disease Insurance Fund compared to the normal contribution rate

1. The request document shall be in accordance with Model No. 01 attached as an appendix to this Decree.

2. A certified copy of the Safety and Hygiene at Work and Accident Frequency Reduction Report conducted by the safety and hygiene at work assessment organization specified in Article 7 of this Decree. The Safety and Hygiene at Work and Accident Frequency Reduction Report shall comply with Model No. 02 attached as an appendix to this Decree.

Article 7. The Safety and Hygiene at Work and Accident Frequency Reduction Report serves as the basis for considering the application of a lower contribution rate to the Work Injury and Occupational Disease Insurance Fund compared to the normal contribution rate

The Safety and Hygiene at Work and Accident Frequency Reduction Report stipulated in Clause 2 of Article 6 of this Decree, conducted by the safety and hygiene at work assessment organization, must meet the following requirements:

1. It is an organization that has been issued a Certificate of Qualification for Safety and Hygiene at Work Training Category C (training personnel for safety and hygiene at work) which remains valid according to the regulations.

2. Utilize safety and hygiene at work assessment experts from the organization during the assessment process. The assessment expert is a safety and hygiene at work training staff member of the organization who has been trained and examined to meet the requirements for assessing safety and hygiene at work activities as prescribed by the Ministry of Labor, Invalids and Social Affairs.

Article 8. Procedures and formalities for deciding on the application of a lower contribution rate to the Work Injury and Occupational Disease Insurance Fund compared to the normal contribution rate

1. An employer wishing to apply a lower contribution rate to the Work Injury and Occupational Disease Insurance Fund compared to the normal contribution rate shall submit one set of application files directly, online, or via postal service in accordance with Article 6 of this Decree to the Ministry of Labor, Invalids and Social Affairs.

2. Within thirty working days from the date of receipt of the complete application file from the employer, the Ministry of Labor, Invalids and Social Affairs shall undertake the following tasks:

a) Send a document to the Department of Labor, Invalids and Social Affairs requesting an evaluation of compliance with laws on safety and hygiene at work in accordance with Model No. 03 attached as an appendix to this Decree;

b) Publish information about the agency, unit, enterprise, or organization on the Ministry of Labor, Invalids and Social Affairs' electronic portal to solicit public opinions for at least ten days;

c) Conduct an audit and decide on the application of a new lower contribution rate to the Work Injury and Occupational Disease Insurance Fund in accordance with Model No. 04 attached as an appendix to this Decree; send or deliver the result directly, online, or via postal service to the enterprise and social insurance agency for implementation;

d) In cases where the conditions for applying a lower contribution rate than the normal contribution rate are not met, provide a response to the employer and clearly state the reasons.

Article 9. Duration of Application of a Lower Contribution Rate to the Work Injury and Occupational Disease Insurance Fund Compared to the Normal Contribution Rate

1. The duration of implementing the contribution rate as stipulated in Point b, Clause 1, Article 4 of this Decree is thirty-six months, starting from the month the decision on applying the contribution rate becomes effective.

2. Within sixty days before the expiration date of the application period as stipulated in Clause 1 of this Article, if the employer still wishes to continue applying a lower contribution rate to the Work Injury Insurance Fund, they shall prepare one set of application files in accordance with Article 6 and proceed with the request as prescribed in Article 8 of this Decree.

Article 10. Revocation and cancellation of the Decision adjusting and applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund

1. The Ministry of Labor, War Invalids and Social Affairs has the authority to revoke and cancel the Decision adjusting and applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund.

2. The Decision adjusting and applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund as stipulated in point c, Clause 2, Article 8 of this Decree shall be revoked and cancelled in the following cases:

a) Employers engage in fraudulent acts or make false declarations in documents in the application dossier for applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund;

b) Employers violate laws on occupational safety and health and social insurance to the extent that they are subject to administrative fines in the form of monetary penalties or criminal prosecution during the period of applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund;

c) Employers fail to report work injuries or occupational safety and health activities during the period of applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund;

d) Organizations evaluating occupational safety and health engage in fraudulent acts that alter conditions serving as the basis for requesting a reduction in the contribution rate as stipulated in Article 5 of this Decree.

3. Employers engaging in acts as prescribed in point a, Clause 2 of this Article shall be responsible for:

a) Repaying the difference in contributions made at the reduced rate compared to the normal rate during the implementation period of the Decision adjusting and applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund;

b) Implementing a contribution rate equal to 1% of the payroll basis for social insurance contributions for a period of 36 months from the date when the Decision adjusting and applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund becomes invalid due to revocation and cancellation.

4. Employers violating as prescribed in point b, c, Clause 2 of this Article shall be responsible for implementing the normal contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund at 0.5% of the payroll basis for social insurance contributions from the date when the Decision adjusting and applying a lower contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund becomes invalid due to revocation and cancellation.

5. In cases of fraudulent acts by organizations evaluating occupational safety and health, the following actions shall be taken:

a) If the fraudulent acts of the organization evaluating occupational safety and health alter the conditions serving as the basis for requesting a reduction in the contribution rate as stipulated in Article 5 of this Decree (in reality, employers do not meet the required conditions), then the employer shall be responsible for repaying the difference in contributions as prescribed in point a, Clause 3 of this Article, while simultaneously implementing the normal contribution rate as prescribed in Clause 4 of this Article;

b) If the fraudulent acts of the organization evaluating occupational safety and health do not alter the fulfillment of the conditions for requesting a reduction in the contribution rate as stipulated in Article 5 of this Decree, then the employer shall continue to implement a lower contribution rate compared to the normal rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund;

c) Organizations and experts evaluating occupational safety and health engaging in fraudulent acts shall not have their assessment results recognized for determining the contribution rate to the Work Injury Insurance Fund and Occupational Disease Insurance Fund for a period of three years from the date of the conclusion regarding the fraudulent act; they shall also be subject to administrative penalties and criminal prosecution according to the level of violation.

Chapter IV

IMPLEMENTATION RESPONSIBILITY

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

1. Submit to the Government for consideration and decision to adjust the contribution rate prescribed in Article 4 of this Decree based on the ability to ensure balance in the Work Injury Insurance Fund and Occupational Disease Insurance Fund during each period; organize the implementation of this Decree.

2. Guide the content, program, and organization of training and examination for occupational safety and health evaluation business, exemption and reduction of training contents already learned for occupational safety and health evaluators; guide the method of calculating work injury frequency.

3. Publish on the Ministry of Labor, War Invalids and Social Affairs's electronic portal the list of occupational safety and health evaluators; violations of laws in the adjustment of contribution rates as prescribed in this Decree.

4. Establish and manage a database for evaluations to adjust contribution rates to the Work Injury Insurance Fund and Occupational Disease Insurance Fund.

5. Organize information dissemination and guidance on the implementation of this Decree through mass media at the central level; organize training and guidance for relevant ministries, sectors, localities, organizations, and associations in implementing and supervising the enforcement of this Decree.

6. Guide and direct Provincial Departments of Labor, War Invalids and Social Affairs to implement as prescribed in point a, Clause 2, Article 8 of this Decree.

Article 12. Responsibilities of the Vietnam Social Security

1. Guide and direct provincial social security agencies to implement adjustments to contribution levels into the Work Injury and Occupational Disease Insurance Fund.

2. Compile and report to the Ministry of Labor, Invalids and Social Affairs on the implementation of work injury and occupational disease insurance policies and systems; compile and report to the Ministry of Finance on the management and utilization of the Work Injury and Occupational Disease Insurance Fund.

Article 13. Responsibilities of People's Committees of provinces and centrally governed cities

1. Organize information dissemination, guidance, management, and implementation of mandatory social insurance contributions into the Work Injury and Occupational Disease Insurance Fund according to this Decree within their jurisdiction.

2. Urge and direct the Department of Labor, Invalids and Social Affairs and related sectors to cooperate with political and social organizations at the local level to inspect and supervise compliance with laws regarding mandatory social insurance contributions into the Work Injury and Occupational Disease Insurance Fund within their jurisdiction.

Article 14. Responsibilities of occupational safety and health evaluation organizations

1. Send experts to attend training courses on occupational safety and health evaluation; use competent evaluators who have been announced on the website of the Ministry of Labor, Invalids and Social Affairs to conduct evaluations as stipulated in Clause 2, Article 7 of this Decree.

2. Develop specific evaluation procedures suitable for the enterprises being evaluated.

3. Prepare reports on occupational safety and health work and reduce the frequency of work injuries to serve as grounds for considering lower contribution rates into the Work Injury and Occupational Disease Insurance Fund according to Model No. 02 attached to this Decree.

4. Coordinate and provide relevant files when requested by authorized state agencies during the evaluation process.

5. Report annually or at any time upon request to the Ministry of Labor, Invalids and Social Affairs according to Model No. 05 attached to this Decree.

Article 15. Rights and responsibilities of employers

1. Reimburse the difference in contributions and implement contribution levels as prescribed in Clause 3, Clause 4, Point a, Clause 5, Article 10 of this Decree.

2. Appoint personnel to coordinate and oversee to ensure that occupational safety and health evaluation organizations comply with the law during the preparation of evaluation reports.

3. Provide relevant files and documents related to occupational safety and health work during the evaluation process.

4. Retain complete files as grounds for requesting application of contribution levels into the Work Injury and Occupational Disease Insurance Fund; provide files to authorized state agencies when requested.

5. Protest and report violations of laws concerning contributions to the Work Injury and Occupational Disease Insurance Fund.

6. Pay evaluation costs according to agreements with occupational safety and health evaluation organizations.

Chapter V

IMPLEMENTING PROVISIONS

Article 16. Effective Date

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

2. The provisions of Government Decree No. 44/2017/NĐ-CP dated April 14, 2017, regarding mandatory social insurance contribution levels into the Work Injury and Occupational Disease Insurance Fund, and Point b, Clause 1, Article 13 of Government Decree No. 143/2018/NĐ-CP dated October 15, 2018, detailing the Law on Social Insurance and the Law on Occupational Safety and Health regarding mandatory social insurance for foreign workers employed in Vietnam shall cease to be effective from the date this Decree takes effect.

Article 17. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree.