ENTERPRISES SHALL BE ENTITLED TO THE LOWER-THAN-NORMAL RATE OF CONTRIBUTION TO THE OCCUPATIONAL ACCIDENT AND DISEASE BENEFIT FUND

Pursuant to Decree 58/2020/ND-CP issued by the Government on May 27, 2020 and coming into effect from July 15, 2020:

– Accordingly, the Employer shall pay monthly social insurance contributions for the benefit of their insured employees in accordance with points a, b, c, d, dd and h of clause 1 of Article 2 and clause 2 of Article 2 in the Law on Social Insurance, except domestic workers, at one of the following rates:

(i) Normal contribution rate shall be equal to 0.5% of the statutory base payroll, which is applicable to employees who are public officials, civil servants or public employees, and members of the armed forces under the control of authorities of the Party and State, socio-political organizations, military, public security forces or public service units funded by the state budget;

(ii) The contribution rate equaling 0.3% of the statutory base payroll shall be applicable to enterprises that satisfy the conditions specified in Article 5 herein.

– Enterprises operating in industries with high risks of occupational accidents and diseases shall be entitled to the contribution rate qualing 0.3% of the statutory base payroll, if they conform to following eligibility requirements:

(i) Within three (03) years prior to the submission date, they have not been subject to any administrative monetary fine or any criminal prosecution for their violation against laws on occupational safety, hygiene and social insurance;

(ii) They have submitted periodic reports on workplace accidents, occupational safety and hygiene in an accurate, sufficient and timely manner within three (03) consecutive years prior to the submission year;

(iii) Frequency rate of occupational accidents in the year preceding the submission year must drop by at least 15% of the average frequency of workplace accidents in three (03) consecutive years prior to the submission year, or have not had any occupational accident three (03) years preceding the submission year.

Best regards,