SURVIVORSHIP ALLOWANCE REGIME – SETTLEMENT OF THE SURVIVORSHIP ALLOWANCE REGIME

Legal grounds:

– Law on Social Insurance No. 58/2014/QH13 dated November 20, 2014 (“Law on Social Insurance”);

– Decree 115/2015/ND-CP dated November 11, 2015 guiding the Law on Social Insurance regarding compulsory social insurance (“Decree 115/2015/ND-CP”);

– Circular 59/2015/TT-BLDTBXH dated December 29, 2015 detailing and guiding the implementation of some articles of the Law on Social Insurance on compulsory social insurance (“Circular 59/2015/TT-BLDTBXH”);

– Decision 166/QD-BHXH dated January 31, 2019 providing procedures for processing of applications for social insurance benefits, and payment of social insurance and unemployment insurance benefits (“Decision 166/QD-BHXH”);

– Official Letter 3194/BHXH-CSXH dated October 08, 2020 guiding a number of new points on the process of handling occupational accidents and diseases according to the provisions of Decree 88/2020/ND-CP and decentralization according to the provisions of Decision 166/QD-BHXH (“Official Letter 3194/BHXH-CSXH”).

1. Survivorship Allowance Regime

1.1. Funeral allowance:

(i) Cases eligible for the funeral allowance:

The funeral allowance is applied when the following employees die or are declared dead by a Court, including:

Where participation in compulsory social insurance[1]:

 a. Vietnamese employees who are paying social insurance premiums or employees who have their period of social insurance premium payment reserved and have paid social insurance premium payment for at least full twelve (12) months;

b. Employees who die of a labor accident or an occupational disease or die
during treatment due to a labor accident or an occupational disease;

c. Persons who are on pension or monthly labor accident or occupational disease allowance and have ceased working.

Where participation in voluntary social insurance^[2]:

a. Employees who have paid social insurance premiums for at least full sixty (60) months;

b. Pensioners.

For the employees who pay both compulsory social insurance and voluntary social insurance premiums: If the employees have paid compulsory social insurance premiums for at least full twelve (12) months, the funeral allowance must comply with the policy on compulsory social insurance[3].

(ii) Subjects and levels of the funeral allowance[4]:

When the employees die, the persons who take charge of their funeral are entitled to a lump-sum funeral allowance:

Funeral allowance = 10 times the basic salary of the month when the employees die = VND14,900,000

 [Currently the basic salary is VND1,490,000]

 When the employees are declared dead by the Court, their relatives are entitled to the funeral allowance as specified.

* FOR THE PERSONS WHO ARE DECEASED DUE TO COVID-19, THE FOLLOWING SUPPORT FOR FUNERAL COSTS WILL BE APPLIED:

– According to Decision 3022/QD-TLD dated August 09, 2021 of Vietnam General Confederation of Labour, trade union members and workers of enterprises, regulatory bodies and units collecting trade union fees who are deceased due to COVID-19 from April 27, 2021 are entitled to VND5,000,000/person;

– Upon the guidance on handling corpses of persons infected or suspected of being infected with SARS-CoV-2 as specified by Decision 5188/QD-BYT dated December 14, 2020 and Decision 2233/QD-BCDQG dated May 29, 2020, corpses of persons infected with SARS-CoV-2 must be cremated, only buried in cases where cremation cannot be performed;

– Cremation costs will be covered depending on local policies, for example:

# In Hanoi: according to Appendix 03 providing the policy on support for cremation in Hanoi issued together with Resolution 03/2020/NQ-HDND dated July 07, 2020, the level of support will be as follows:

+ Support for the cremation costs:

> For adult corpse: VND3,000,000/case;

> For corpse of child under 06 years old: VND1,500,000/case.

+ Support for transporting costs: VND1,000,000/case;

+ Other support:

For people from poor households, children under six (06) years old; people with meritorious services who are being cared for regularly at centers for nurturing and nursing people with meritorious services; social objects who are being nurtured regularly at public social assistance establishments of Hanoi city, people who are treated at Hospital 09 – Hanoi Department of Health; homeless wanderer who died in Hanoi city, the support will be as follows:

> For cremation coffin: VND1,250,000/case;

> For bags shrouding: VND500,000/case;

> For ashes urn: VND250,000/case;

> For management and storage of ashes urn: VND5,270,000/lot.

Effect: From January 01, 2021.

# In Ho Chi Minh city: according to Decision 14/2015/QD-UBND dated March 10, 2015 providing the policy on support to encourage cremation in Ho Chi Minh city:

– Cremation support with the amount of VND2,500,000/case for the following persons: Beneficiaries of social welfare who are being raised at Thi Nghe Nursing Center, People from poor households (according to the City’s criteria in each period), etc.

– Cremation support with the amount of VND1,500,000/case for the following persons: Pensioners, People from near-poor households (according to the City’s criteria in each period), People with household registration in Ho Chi Minh city;

– Free cremation for children aged six (06) and under with household registration or temporary residence (KT3) in Ho Chi Minh City.

1.2. Monthly survivorship allowance:

Only for the case of participation in compulsory social insurance.

For employees who pay both compulsory social insurance and voluntary social insurance premiums: If the employees who have paid compulsory social insurance premiums for at least full fifteen (15) years, the monthly survivorship allowance must comply with the policy on compulsory social insurance[5].

(i) Cases eligible for monthly survivorship allowance[6]:

When the employees who meet the criteria specified in Item II.1.1.(i) – Cases eligible for the funeral allowance, and fall in one of the following cases, die, their relatives are entitled to a monthly survivorship allowance:

a. They have paid social insurance premiums for at least full fifteen (15) years but have not yet received a lump-sum social insurance allowance;

b. They are on pension;

c. They die of a labor accident or an occupational disease;

d. They are on monthly labor accident or occupational disease allowance for their working capacity decrease of 61% or more.

(ii) Persons eligible for monthly survivorship allowance[7]:

Relatives of deceased employees who are entitled to a monthly survivorship allowance include:

a. Children aged under 18 years; children aged full 18 years or older who suffer a working capacity decrease of 81% or more; or children whose father died while they are in the womb;

b. Wives aged full 55 years or older or husbands aged full 60 years or older; wives aged under 55 years or husbands aged under 60 years who suffer a working capacity decrease of 81% or more;

c. Natural fathers, natural mothers, fathers-in-law, mothers-in-law, or other family members whom the insured are obliged to nurture in accordance with the law on marriage and family, who are full 60 years or older, for men, or full 55 years or older, for women;

d. Natural fathers, natural mothers, fathers-in-law, mothers-in-law, or other family members whom the insured are obliged to nurture in accordance with the law on marriage and family, who are under 60 years old, for men, or under 55 years old, for women, and suffer a working capacity decrease of 81% or more.

To enjoy a monthly survivorship allowance, relatives defined at Points b, c and d above must have no income or have monthly income lower than the basic salary. Incomes referred to in this provision are exclusive of allowances provided under the law on preferential treatment for people with meritorious services to the country.

(iii) Levels of monthly survivorship allowance[8]:

The monthly survivorship allowance for each relative = 50% of the basic salary = VND745,000/month

 For relatives who have no direct fosterer: The monthly survivorship allowance for each relative = 70% of the basic salary = VND1,043,000/month

[Currently the basic salary is VND1,490,000]

 Note:

– For a dead person, the number of relatives being entitled to monthly survivorship allowance must not exceed four (04); for two (02) or more dead persons, their relatives are entitled to two (02) times the allowance level specified above;

– The time for enjoying monthly survivorship allowance must start from the month following the month the employee dies. For a child whose the father died while he/she is in the womb, the monthly survivorship allowance shall be paid from the month the child is born.

1.3. Lump-sum survivorship allowance:

For both cases of participation in compulsory social insurance and voluntary social insurance.

(i) Cases eligible for a lump-sum survivorship allowance:

Where participation in compulsory social insurance[9]:

When the employees who meet the criteria specified in Item II.1.1.(i) – Cases eligible for the funeral allowance, and fall in one of the following cases, die, their relatives are entitled to a lump-sum survivorship allowance:

a. They do not fall in the cases eligible for a monthly survivorship allowance;

b. They fall in one of the cases eligible for a monthly survivorship allowance but have no relative eligible for the monthly survivorship allowance;

c. Their relatives who are entitled to the monthly survivorship allowance wish to receive a lump-sum survivorship allowance, except under-06 children, children or spouses suffering a working capacity decrease of 81% or more;

d. For employees who die without any relatives (natural child, adopted child, spouse, natural father, natural mother, adoptive father, adoptive mother, father-in-law or mother- in-law, or another family member whom the insured is obliged to nurture in accordance with the law on marriage and family), the lump-sum survivorship allowance must comply with the law of inheritance;

Where participation in voluntary social insurance[10]:

When employees who are paying social insurance premiums, employees who have their period of social insurance premium payment reserved, or persons who are on pension die, their relatives are entitled to a lump-sum survivorship allowance.

(ii) Levels of the lump-sum survivorship allowance[11]:

a. The lump-sum survivorship allowance for relatives of employees who are paying social insurance premiums or of employees who have their period of social insurance premium payment reserved shall be calculated based on the number of years of social insurance premium payment:

– For the years of payment prior 2014: these relatives are entitled to 1.5 times the average monthly income on which social insurance premiums are based for each year of payment;

– For the years of payment since 2014: these relatives are entitled to two (02) times the average monthly income on which social insurance premiums are based each year of payment.

Where participation in compulsory social insurance: The lowest level must equal three (03) times the average monthly salary on which social insurance premiums are based.

Where participation in voluntary social insurance: For employees who have paid social insurance premiums for under one (01) year, the lump-sum survivorship allowance must equal the paid premium amount but not exceed two (02) times the average monthly income on which social insurance premiums are based; for employees who pay both compulsory social insurance and voluntary social insurance premiums, the lump-sum survivorship allowance must equal at least three (03) times the average monthly salary and income on which social insurance premiums are based.

b. The lump-sum survivorship allowance for relatives of persons who die while on pension shall be calculated based on these persons’ period of pension enjoyment:

– If they die within the first two (02) months of pension enjoyment, such allowance must equal forty-eight (48) months’ current pension;

– If they die in subsequent months, the allowance shall be reduced by half the monthly pension for each additional month of pension enjoyment; the lowest allowance level must equal three (03) months’ current pension in case of participation in compulsory social insurance.

2. Settlement of the survivorship allowance regime

2.1. Step 1: Preparation

Employees’ relatives are required to prepare documents including:

(i) In case a person who is paying social insurance or has social insurance payment period preserved dies:

a. Social insurance book;

b. The copy of Death Certificate or Death Notice or Extract of Death Certificate or the Court’s Declaration of Death;

c. The declaration (form 09-HSB);

d. The original Report on Assessment of work capacity reduction of the dead person’s relative whose work capacity reduced by 81% or more severe (if the original report has been submitted for other type of social insurance benefits, the copy thereof may be used), or the copy of certificate of extremely severe physical disability (equivalent to the work capacity reduction level of 81% or more severe) as regulated in Circular 01/2019/TT-BLDTBXH in case of application for monthly survivor allowance;

e. The record of occupational accident investigation or the medical record for treatment of occupational disease if a person died from occupational accident or occupational disease;

f. Invoices/payment receipts and list of medically assessed contents given by health facility in case of payment of medical assessment charges;

g. The Statement Form No. 04C-HBKV (promulgated together with the Circular 136/2020/TT-BQP dated October 29, 2020) of the person who served in the army before January 01, 2007 in area where region-base benefit is granted.

(ii) In case a person who is receiving or is suspended from monthly pension or social insurance benefit dies, the application includes: The documents prescribed in b, c, d, f above.

Quantity: one (01) set.

2.2. Step 2: Application submission

(i) Place of application submission:

a. In case an employee who is paying the compulsory social insurance dies: Relatives submit the application to the employer, the Employer submits such application to the social insurance agency where the Employer pays social insurance premiums after full receipt;

b. In case an employee who has compulsory social insurance payment period preserved (applicable to the case of a person who dies while paying social insurance and the Employer has closed the social insurance book and the relative wishes to directly submit the application, except for the case of death due to labor accident or occupational disease) or is awaiting monthly pension or benefit of communal officials or is paying the voluntary social insurance dies: Relatives submit the application as prescribed to the social insurance agency or Commune-level People’s Committees where the relatives reside;

c. In case a person currently enjoying or temporarily suspending the enjoyment of the monthly pension or social insurance allowance dies: Relatives submit the application as prescribed to the social insurance agency or Commune-level People’s Committees where the relatives reside or monthly pensions and social insurance allowances are being paid.

(ii) Method of application submission:

Employers and employees’ relatives shall submit the applications by one of the following methods:

a. Electronic transactions;

b. Public postal service;

c. Directly at the social insurance agency;

d. Through the Commune-level People’s Committees (only for employees’ relatives who directly submit the applications).

2.3. Step 3: Social insurance agency receives the application and settles as regulated:

(i) Time limit for settlement:

Within eight (08) working days from the receipt of sufficient application as regulated.

(ii) Results:

a. Related documents:

– If applying through the Employer: Receiving the result from the Employer;

– If direct submission: Receiving the result in the registered form (Directly at the social insurance agency or through the public postal service or through electronic transactions of the Employer or the Commune-level People’s Committee).

b. Survivorship allowance: Directly at the social insurance agency or through the public postal service or through a personal account.

Fee: None.

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[1] Article 66 of Law on Social Insurance;

[2] Article 80 of Law on Social Insurance;

[3] Article 71 of Law on Social Insurance;

[4] Clause 2 Article 66 of Law on Social Insurance;

[5] Article 71 of Law on Social Insurance;

[6] Clause 1 Article 67 of Law on Social Insurance;

[7] Clause 2, 3 Article 67 of Law on Social Insurance;

[8] Article 68 of Law on Social Insurance;

[9] Article 69 of Law on Social Insurance;

[10] Article 81 of Law on Social Insurance;

[11] Article 70 of Law on Social Insurance.