From March 2022, several new circulars pertaining to social insurance, labor and salary have become effective. Notable provisions of these circulars include the salary used as the basis of compensation for occupational accidents and occupational diseases; instructions on how to calculate the frequency rate of occupational accidents to reduce the payment amount of social insurance premiums; and other related policies and regulations.
Salary used as the basis of compensation for occupational accidents and occupational diseases
Under Circular No. 28/2021/TT-BLDTBXH, salary used as the basis of compensation for occupational accidents and occupational diseases, allowances for occupational accidents and salary used as the basis for payment to employees suffering from occupational accidents or diseases and having to leave their jobs for medical treatment and rehabilitation, shall be calculated on average of 6 consecutive months preceding the occurrence of the occupational accident or disease.
If the period of working, apprenticeship, or probation is less than 6 months, salary used as the basis of compensation and allowance shall be calculated on the average salary of the months preceding the occurrence of the occupational accident or at the time of being diagnosed with an occupational disease.
The monthly salary above is determined for each subject as follows:
- For cadres, civil servants, public employees, members of the people’s army, and members of the people’s police: the monthly salary includes salary for rank, position, and any related allowances (if any) (position allowance, seniority allowance, seniority allowance beyond the frame).
- For employees working under a labor contract: the monthly salary includes salary, allowance, and any other amounts agreed upon in the labor contract.
- For paid apprentices: the monthly salary is the amount agreed upon by the two parties. In case there is no apprentice salary agreement, the salary used as the basis of compensation, allowance for occupational accidents shall be the minimum wage announced by the government at the location where the apprentices work.
- For probationary civil servants and public employees: the monthly salary is the probationary salary determined by the competent authority.
- For probationary employees: the monthly salary is the probationary salary agreed upon by the two parties in accordance with the applicable Labor Code of Vietnam.
Formula for calculating the frequency rate of occupational accidents to reduce the payment of compulsory social insurance
Under Circular 27/2021/TT-BLDTBXH, the frequency rate of occupational accidents is used as a basis for application of a lower premium rate than the normal rate paid to the Occupational Accidents and Diseases Insurance Fund. This rate is calculated by the following formula:
| Ki = | Ni x 1000 |
| Pi |
in which
Ki: the frequency rate of occupational accidents of year i;
Ni: the number of people suffering and death from occupational accidents who are entitled to the occupational accident insurance regime from the Occupational Accidents and Diseases Insurance Fund from January 1 to the end of December 31 in year i;
Pi: the number of employees participating in compulsory social insurance from January 1 to December 31 in year i.
Increase of monthly allowance
According to Circular 02/2022/TT-BNV, from 1 January 2022, the monthly allowance to be received (rounded) for old and weak commune-level cadres who have retired is adjusted as follows:
- For cadres who are formerly Secretaries of Party Committee or Chairmans of the Commune People’s Committee: the monthly allowance is 2,473,000 VND/month (up from the previous rate of 2,116,000 VND/month);
- For cadres who are formerly Deputy Secretaries, Vice Presidents, Permanent members of the Party Committee, Member of Secretariat of the Commune People’s Committee, Secretary of the Communal People’s Council, Commune Commander, President of People’s Public Security: the monthly allowance is 2,400,000 VND/month (up from the previous rate of 2,048,000 VND/month);
- For the remaining titles: the monthly allowance is 2,237,000 VND/month (up from the previous rate of 1,896,000 VND/month).
Increase of pension, social insurance allowance and monthly allowance
Under Circular 37/2021/TT-BLDTBXH, from 1 January 2022, pension, social insurance allowance, and monthly allowance will increase by 7.4 percent.
The above benefits are determined for the following subjects:
- cadres, civil servants, workers, and public employees; soldiers, public security officers, and people performing cipher work who are receiving monthly pensions;
- commune, ward, and township officials who are receiving monthly pensions and allowances; and
- individuals who are receiving a monthly allowance for loss of working capacity.