Detailed regulations on the payment of occupational accident allowances to employees in 2022 in Vietnam, payment of occupational accident allowances to employees in 2022 in Vietnam, occupational accident allowances to employees in 2022 in Vietnam, occupational accident allowances to employees in Vietnam

Detailed regulations on the payment of occupational accident allowances to employees in 2022 in Vietnam

The payment of occupational accident allowances to employees in 2022 in Vietnam has had some big changes at the beginning of March. Accordingly, the government has issued specific guidance on the detailed regulations on the payment of occupational accident allowances to employees in 2022 in Vietnam.

Specific regulations on how to calculate accident frequency to reduce social insurance contributions

On December 28, 2021, the Ministry of Labor, War Invalids, and Social Affairs issued Circular 27/2021/TT-BLDTBXH. This Circular guides the employees and the employers on how to calculate the frequency of occupational accidents as a basis for applying a lower payment rate than the normal payment to the labor accident and occupational disease insurance fund.

Detailed regulations on the payment of occupational accident allowances to employees in 2022 in Vietnam
Detailed regulations on the payment of occupational accident allowances to employees in 2022 in Vietnam

Specifically, according to Article 8 of Circular 27, the frequency of occupational accidents is calculated according to the following formula:

The frequency of occupational accidents in the year 20xx = The number of people suffering from occupational accidents and deaths from occupational accidents who are entitled to the occupational accident insurance regime from the Insurance Fund for Occupational Accidents and Diseases calculated from January 1 to December 31 in the year 20xx / The number of employees participating in compulsory social insurance from January 1 to December 31 in the year 20xx x 1000

The average occupational accident frequency of 03 consecutive years before the proposed year is calculated as follows:

The average occupational accident frequency of 03 consecutive years before the proposed year = [The frequency of occupational accidents of the year immediately preceding the proposed year (1st year) + The frequency of occupational accidents of the year immediately preceding the first year (year 2) + The frequency of occupational accidents of the year preceding the second year (3rd year)] / 3.

This calculation will be applied from March 1, 2022.

New guidance on compensation for occupational accidents and diseases

March 1, 2022, is also the effective date of Circular 28/2021/TT-BLDTBXH guiding the implementation of the Law on Occupational Safety and Health, replacing Circular 04/2015/TT-BLDTBXH and Circular 26/2017/TT-BLDTBXH.

According to the new Circular, the mode of payment of occupational accident benefits in special cases has been adjusted to fit the interests of the employees to fight against the employers that might refuse the payment and support for the employees because of the high cost. 

Accordingly, pursuant to Clause 2, Article 8 of Circular 28/2021, in case an employee is eligible to participate in compulsory social insurance but the employer does not pay social insurance for them, either by refusing or making a deal with the employee to work without compulsory insurance, etc., in the circumstance that the employee suffers occupational accidents, the employer will then have to pay the amount corresponding to the allowance that should have been paid by the social insurance agency.

If the employer refuses to pay or pay inadequately, he/she and the company will be punished according to the law on Labor in Vietnam.

In addition, previously, when there is occupational accidents or occupational diseases, the law is flexible that the employees and the employers may negotiate on reasonable compensation for the employees. This is a special focus on the way of payment, either monthly or all at once. 

However, in order to ensure the interests of employees, the new Circular has added provisions in the case that the parties do not agree on the form of payment, the payment shall be made at the request of the employee.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

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