Labor ministry wants occupational accident insurance cut to 0.5%

The Ministry of Labor, Invalids and Social Affairs is drafting a decree on compulsory social insurance for occupational accidents and diseases, in which the insurance rate is proposed at 0.5% of a company’s total payroll fund, compared to the current 1%.

In a recent document the ministry sent to the Government, the 2014 social insurance law stipulates that employers shall contribute 1% of their salary funds to the occupational accidents and diseases fund on a monthly basis.

The ministry, in accordance with the Government’s Resolution No. 35 on support for enterprises until 2020, conducted a review of the current social insurance regime for occupational accidents and diseases. The result showed the rate of its expenditure and revenue does not exceed 10%, which has been stable in recent years.

Even though the occupational safety and health law which took effect in mid-2016 stipulates some extra expenditures, this rate does not exceed 25%.

Therefore, the new premium rate for occupational accidents and diseases which will be slower than the current rate and applied in a short-term period is completely feasible with an aim of reducing costs for enterprises.

The ministry has floated two options. One is to reduce the rate for all sectors and jobs to 0.5% of the salary fund. The other is to offer different reduction rates depending on levels of risk and accident consequences for each sector and job.

The ministry said the second option would encourage employees to take proactive steps towards prevention, maximizing occupational accidents and diseases compared to the first choice. However, flexible premium rates should be calculated.

According to the ministry, the first option is simpler than the second and can be applied immediately. Besides, one of the social insurance characteristics is the sharing of risks among participants. Therefore, the ministry would propose the draft decree based on the first option, and evaluate impacts in three years of its implementation to consider the second option’s feasibility.

The new decree should be issued as soon as possible to support local firms. It will take effect 45 days after signing, and be applicable by the end of 2019.

SGT

Other News

Hanoi ready to implement Capital Law 2026, unlocking new development momentum

Hanoi ready to implement Capital Law 2026, unlocking new development momentum

The effectiveness of the Capital Law 2026 will be measured not by the number of legal documents issued but by tangible improvements in governance and public administration, better services for people and businesses, faster administrative procedures, stronger investment attraction and higher economic growth.

Vietnamese students earn honours at ROBOG Asia Cup 2026

Vietnamese students earn honours at ROBOG Asia Cup 2026

Three teams from Chu Van An Secondary School in Vietnam’s Thai Nguyen province have earned First Prize honours and advanced to the quarterfinals at the ROBOG Asia Cup 2026, a regional robotics and artificial intelligence (AI) competition for students held in Hong Kong, China.

Hanoi sets out new investment blueprint with century-long development vision

Hanoi sets out new investment blueprint with century-long development vision

As of early June, Hanoi had attracted 74.6 billion USD in foreign direct investment (FDI) through more than 9,250 valid projects. FDI inflows in the first six months were projected at 3.2 billion USD, surpassing the annual target by 116%, while nearly 16,000 new businesses were established in the first five months, up 34.4% year-on-year.

Vietnam promotes legal cooperation and rule of law at global forum

Vietnam promotes legal cooperation and rule of law at global forum

Vietnam’s development and international integration have gone hand in hand with the improvement of its legal system, the incorporation of international commitments into domestic legislation, and legal reforms aimed at fostering development, openness and global integration. The country regards international law as an essential instrument for building fair, mutually beneficial relations among nations.

Hanoi to hold investment promotion event on June 29

Hanoi to hold investment promotion event on June 29

At the event, Hanoi authorities plan to grant investment policy decisions and investment registration certificates to 20 exemplary projects in the fields of transportation infrastructure, industrial parks, urban development, social housing, environment, science and technology, and foreign investment attraction.

Hanoi's Red River urban area development draws widespread attention

Hanoi's Red River urban area development draws widespread attention

Located south of the Red River and extending from the historic inner city to newly developing areas in the south and the west, the central urban area along Red River’s right bank covers approximately 45,317 hectares and is projected to accommodate around 6.365 million residents by 2045 and 6.455 million by 2065.

Hanoi's Red River urban area development draws widespread attention

Hanoi's Red River urban area development draws widespread attention

Located south of the Red River and extending from the historic inner city to newly developing areas in the south and the west, the central urban area along Red River’s right bank covers approximately 45,317 hectares and is projected to accommodate around 6.365 million residents by 2045 and 6.455 million by 2065.

Regional cooperation strengthened to combat cross-border drug crime

Regional cooperation strengthened to combat cross-border drug crime

Vietnam, China, Laos and Myanmar face common challenges as drug syndicates increasingly exploit the Mekong River, cross-border transport networks, e-commerce platforms, international logistics services, cyberspace and cryptocurrencies to organise drug transactions and smuggling operations.