Monthly benefits for occupational accidents in Vietnam

Occupational accidents, while undesirable, can occur unexpectedly, significantly impacting the health and income of workers. To safeguard the rights of workers and provide necessary support during such adversities, the State has established regulations governing monthly benefits for occupational accidents in Vietnam. To clarify the criteria for eligibility and the procedural requirements for receiving these benefits, Viet An Law will elucidate the latest regulatory framework concerning the occupational accident benefits system in Vietnam.

Conditions for receiving monthly benefits for occupational accidents in Vietnam

Occupational accidents are accidents that cause injury to any part or function of the body or cause death to workers, occurring during the labor process, and are associated with the performance of work and labor duties (Clause 8, Article 3 of the Law on Occupational Safety and Hygiene 2015).

According to the provisions of Article 45 of the Law on Occupational Safety and Hygiene 2015, workers participating in occupational accident insurance are entitled to occupational accident benefits when the following conditions are met:

• Sustaining an accident falling within one of the following cases:
  • At the workplace and during working hours, including while performing necessary personal needs at the workplace or during working hours permitted by the Labor Code and the internal rules of the production and business establishment, including break time, meals, taking nourishment through food, menstrual hygiene, bathing, breastfeeding, and using the toilet;
  • Outside the workplace or outside working hours when performing work at the request of the employer or the person authorized in writing by the employer to directly manage the labor;
  • On the route from the residence to the workplace or from the workplace to the residence within a reasonable time and route;
• Reduction of labor capacity by 5% or more due to the accident specified in Clause 1, Article 45 of the Law on Occupational Safety and Hygiene 2015;
• Workers are not entitled to benefits paid by the Occupational Accident and Disease Insurance Fund if they fall into one of the causes specified in Clause 1, Article 40 of the Law on Occupational Safety and Hygiene 2015.

Regulations on receiving monthly benefits for occupational accidents

Under Clause 1, Article 49 of the Law on Occupational Safety and Hygiene 2015, workers who suffer a reduction in labor capacity of 31% or more are entitled to monthly benefits.

The monthly benefit levels are specified as follows:

• A reduction of 31% in labor capacity entitles the worker to 30% of the base salary; for each additional 1% reduction, the worker is entitled to an additional 2% of the base salary.
• Additionally, workers are entitled to an extra monthly benefit calculated based on the number of years they have paid social insurance contributions. For up to one year, this benefit is calculated at 0.5% of the salary used for social insurance contributions of the month immediately preceding the cessation of work for treatment. For each additional year of social insurance contributions, the benefit increases by 0.3%.

In cases where injuries or illnesses recur, workers are entitled to reassessment of their reduced labor capacity, and the new benefit period is calculated from the month in which the Medical Examination Council concludes the assessment.

The benefit period: The benefit period is calculated from the month the worker completes treatment and is discharged from the hospital.

Moreover, according to Article 50 of the 2014 Social Insurance Law, workers who suffer a reduction in labor capacity of 81% or more and are paralyzed, blind in both eyes, have amputated or paralyzed limbs, or have a mental illness, are entitled to a monthly service allowance equivalent to the base salary.

Workers who are receiving monthly benefits for occupational accidents and relocating to a new place within the country and wishing to continue receiving benefits at their new place of residence must apply to the social insurance agency currently providing the benefits. Within 05 days of receiving the application, the social insurance agency is responsible for processing it; if the request is not granted, they must provide a written explanation stating the reasons.

Procedure for Receiving monthly benefits for occupational accidents for the first time

Step 1: Prepare and Submit the Dossier

Workers eligible for benefits prepare the dossier and submit it to the employing agency. The dossier includes:

• A copy of the hospital discharge certificate or an excerpt of the medical record after treatment for the occupational accident (in case of inpatient treatment);
• The medical assessment report on the reduction of labor capacity issued by the Medical Examination Council;
• The prescriptions of the medical examination and treatment facility, the orthopedic facility, the rehabilitation facility, or the orthopedic devices (if any);
• Invoices, receipts for assessment fees, and a list of assessment contents from the medical examination agency (in case of reimbursement of medical assessment fees);

Employing agency: Receives the dossier from the worker; prepares a proposal for resolving occupational accident benefits and submits it to the social insurance agency where the employing agency pays social insurance; in case the worker retires after the accident and requests the resolution of occupational accident benefits, the employing agency where the accident occurred prepares the dossier and transfers it to the social insurance agency responsible for paying pensions within 30 days from the date of receiving the complete dossier from the worker.

Submission methods:

• Via electronic transactions: Prepare an electronic dossier, sign digitally, and send it to the Vietnam Social Security Public Service Portal or through the I-VAN organization; if the paper dossier is not converted to electronic format, send the paper dossier to the social insurance agency via postal services within 30 days from the date of receiving the complete dossier from the worker.
• Via postal services.
• Directly at the social insurance agency.

Step 2: The social insurance agency receives and processes the dossier

Within 10 days from the date of receiving the complete dossier, the social insurance agency is responsible for resolving the occupational accident insurance benefits; if not resolved, a written response stating the reasons must be provided.

Step 3: Receive the resolution results

The employing agency receives the relevant documents in the registered form to hand over to the worker (directly at the social insurance agency or via postal services or via electronic transactions).

The worker receives the benefits through one of the following methods:

• Via personal account;
• Directly at the social insurance agency (for one-time benefits) or via postal services.

Some related questions about receiving monthly benefits for occupational accidents in Vietnam

Where can workers register to receive benefits?

Workers can submit their dossiers at the district or provincial social insurance agency where they reside or where the company is registered to pay social insurance.

Do workers need to pay additional fees to receive occupational accident benefits?

No. The occupational accident benefit is paid from the Occupational Accident and Disease Insurance Fund contributed by the employer. Workers do not need to pay additional fees.

Do monthly benefits change if the base salary increases?

Yes. Monthly benefits are adjusted to increase according to the base salary. When the State adjusts the base salary, the benefits will automatically increase correspondingly.

If the company does not participate in occupational accident insurance, are workers entitled to benefits?

If the company does not pay insurance, workers can still request compensation from the employer according to legal regulations. The compensation is usually equivalent to 1.5 to 3 months’ salary for each 1% reduction in labor capacity.

Are freelance workers or those without a labor contract entitled to benefits?

No. Only those who participate in compulsory social insurance are eligible for occupational accident benefits. However, they can request compensation from the employer if the accident occurs due to the company’s fault.

If a worker works for multiple companies and an accident occurs at one company, how are benefits calculated?

The benefit scheme is the responsibility of the company where the accident occurred, and it is calculated based on the salary at that company.

The above information is provided by Viet An Law Firm regarding the regulations on receiving monthly benefits for occupational accidents. If you need service support, please contact Viet An Law Firm for the quickest assistance!