THE GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
No: 12-CP | Hanoi, January 26, 1995 |
ISSUING THE REGULATION ON SOCIAL INSURANCE
THE GOVERNMENT
Pursuant to the Law on Organization of the Government on the 30th of September 1992;
Pursuant to the Labor Code passed on the 23rd of June 1994;
At the proposal of the Minister of Labor, War Invalids and Social Affairs,
DECREES:
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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Vo Van Kiet
ON SOCIAL INSURANCE
(Issued together with Decree No.12-CP on the 26th of January 1995 of the Government)
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- Sickness allowance;
- Maternity allowance;
- Allowance for labor accident and occupational disease;
- Pension;
- Death allowance.
- The laborers working at State-owned enterprises;
- The laborers working at the enterprises of the non-State sectors, which employ 10 laborers or more;
- The Vietnamese laborers who work at enterprises with foreign invested capital, in export-processing zones or industrial parks; or in foreign agencies or organizations or international organizations in Vietnam, except otherwise provided for by an international agreement that the Socialist Republic of Vietnam has signed or acceded to;
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- The laborers at enterprises or service organizations belonging to the armed forces;
- The elected personnel at State management agencies, or offices of the Party and people's organizations, from central to district levels;
- The State officials and employees at the specialized administrative agencies, the employees offices of the Party and people's organizations, from central to district levels;
The above-stipulated subjects who are currently in training or practise, or on mission or on convalescence inside or outside the country while continuing to receive salaries or wages, are also obliged to join the social insurance scheme.
The above-said subjects are collectively referred to as the employees.
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The employee, who takes leave of sickness which is self-inflicted or due to alcoholism or drug abuse, is not entitled to sickness allowance.
Article 7.- The maximum period of time for the employee to take sickness allowance is as follows:
1. With regard to an employee working in normal conditions:
- 30 days in a year, if he/she has paid social insurance premiums for less than 15 years;
- 40 days in a year, if he/she has paid social insurance premiums for from 15 to less than 30 years;
- 50 days in a year, if he/she has paid social insurance premiums for 30 years or more;
2. With regard to the employee working in heavy or hazardous occupations or jobs; or working in areas where the area allowance is indexed at 0.7 or more:
- 40 days in a year, if he/she has paid social insurance premiums for less than 15 years;
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- 60 days in a year, if he/she has paid social insurance premiums for 30 years or more;
The list of heavy or hazardous occupations and jobs shall be issued by the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Health.
3. The employee who suffers from a disease which requires long treatment under prescriptions of the Ministry of Health, is entitled to sickness allowance for a maximum of 180 days in a year, irrespective of the time for which he/she has paid his/her social insurance premiums.
In the event that the employee must continue his/her medical treatment after these 180 days, his/her sickness allowance will be provided for in Item 2, Article 9, of this Regulation.
2. In case both parents of the sick child are subscribers to the social insurance policy, only one parent is entitled to social insurance benefit during his/her leave of absence to take of the sick child.
3. The maximum period for allowance for child-caring leave of absence is as follows:
- 20 days in a year, if the child is under three years of age;
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- 15 days in year, if the child is from 3 to 7 years of age.
4. The employee, who takes family-planning measures such as intra-uterus device, abortion and vasectomy and takes leave of absence as provided for by the Ministry of Health, is entitled to allowances stipulated in Item 1, Article 9, of this Regulation.
2. In case the employee suffers from a disease which takes long treatment as stipulated in Item 3, Article 7 of this Regulation and which requires further treatment after the total period of 180 days, he/she shall be entitled to an allowance of 75% of the salary which is used as basis to pay his/her social insurance premiums prior to his/her leave of absence, if he/she has been a subscriber to the social insurance policy for 30 years or more; or to an allowance of 65% of the salary which is used as basis to pay his/her social insurance premiums prior to his/her leave of absence, if he/she has been a subscriber to the social insurance policy for less than 30 years.
In case the child-bearing woman employee, who is working far from a medical institution or who is having an ailment or whose fetus is abnormal, shall have two days off for each of these leaves.
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1. The maternity leave, which is taken before and after confinement, is defined as follows:
- Four months for the woman employee who works in normal conditions;
- Five months for the woman employee who works in hazardous occupation or on heavy-duty job; on three-shift duty; or in place which has an area subsidy index from 0.5 to 0.7;
- Six months for the woman employee who works in a place which has an area subsidy index of 1; who works in an occupation listed as special by the Ministry of Labor, War Invalids and Social Affairs.
2. In case of twin or multiple birth, the woman employee shall have an additional leave of 30 days for each child from the second.
In case the new-born child dies before 60 days of age (including still birth), the woman employee is entitled to a leave of absence of 75 days after child delivery; if the child dies after 60 days of age, the woman employee is entitled to a leave of absence of 15 days after the death of the child, but not exceeding the time maximum stipulated in Item 1 of this Article.
3. At the expiry of the maternity leave as stipulated in Items 1 and 2 of this Article, if the woman employee has the need, she may take additional leave of absence on condition that she has the consent of her employer. In this case she shall not be convered by social insurance.
4. The woman employee may resume work before the expiry of her maternity leave as stipulated in Item 1 of this Article, if she has spent 60 days of the leave after date of delivery, has a doctor's certificate that her early return to work shall not affect her health, and has notified her employer of her return one week in advance. In this case, aside from her salary, the woman employee shall continue to enjoy her maternity allowance till the end of her regulatory maternity leave.
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III. ALLOWANCES FOR LABOR ACCIDENT AND OCCUPATIONAL DISEASE
- During the work time, or at the work place, including overtime work required by the employer;
- Outside the work place while on assignment by the employer;
- En route to and from place of work and residence.
After his/her stabilization of injury, his/her employer shall have to assign him/her to a suitable job. The employee shall be recommended by the social insurance organization to take evaluation of labor ability at a Medical Evaluation Board according to the provisions set by the Ministry of Health.
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Degree of labor disability One-time allowance
From 5% to 10% 4 months of minimum wage
From 11% to 20% 8 months of minimum wage
From 21% to 30% 12 months of minimum wage
2. For labor disability of 31% or higher, a monthly allowance shall be given from the date of hospital checkout:
Degree of labor disability Monthly allowance
From 31% to 40% 0.4 x minimum wage
From 41% to 50% 0.6 x minimum wage
From 51% to 60% 0.8 x minimum wage
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From 71% to 80% 1.2 x minimum wage
From 81% to 90% 1.4 x minimum wage
From 91% to 100% 1.6 x minimum wage
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1. Having reached the age of 60 for a man and 55 for a woman, and having paid social insurance premiums for 20 years or more.
2. Having reached the age of 55 for a man and 50 for a woman, and having paid social insurance premiums for 20 years or more, which includes one of the followings:
- A full 15-year period in heavy-duty or hazardous occupations;
- A full 15-year period in places which have an area subsidy index of 0.7 or more;
- A full 10-year period working in southern Vietnam or Laos before the 30th of April 1975, or in Cambodia before the 31st of August 1989.
1. Having reached the age of 60 for a man and 55 for a woman, and having paid social insurance premiums for from full 15 years to less than 20 years.
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3. Having spent at least 15 years working in especially heavy or hazardous job, and having paid social insurance premiums for full 20 years or more, but having lost 61% or more of his/her labor ability (whatever the age).
The list of heavy or hazardous jobs and especially heavy or hazardous jobs shall be issued by the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Health.
Article 27.- The employee who is entitled to monthly pension shall enjoy the following benefits:
1. A monthly pension, which is based on the number of years covered by social insurance premiums and the average of the monthly salaries which have been used as basis for computing the level of his/her social insurance premiums. It is defined as follows:
a) The employee who has purchased social insurance for full 15 years, shall have a monthly pension equal to 45% of the average of the monthly salaries which have been used as basis for computing the level of social insurance premiums. After that, for each additional year covered by social insurance premiums, another 2% shall be added. The maximum monthly pension shall be equal to only 75% of the average of the monthly salaries which have been used as basis for computing the level of his/her social insurance premiums.
b) The employee, who is entitled to a monthly pension lower than the pension stipulated in Article 26, shall have his/her pension calculated as provided for in Pont (a) of this Article. But for each year of the premature retirement age as stipulated in Items 1 and 2, Article 25 of this Regulation, 2% of the average of the monthly salaries which have been used as basis for computing the lvel of his/her social insurance premiums, shall be deducted.
The lowest pension shall be equal to the minimum wage.
2. Apart from the monthly pension, the employee who has paid social insurance premiums for over 30 years, shall, at the time of his/her retirement, be given a one-time allowance which is calculated as follows: each year (comprising 12 months) from the 31st year of paying social insurance premiums, shall be paid half the average monthly salary which has been used as basis for computing the level of his/her social insurance premiums, but the total shall not exceed five months of this average salary.
3. The employee, who is entitled to a monthly pension, shall have the health insurance premises for him/her by the fund for social insurance.
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1. For the employee who has paid social insurance premiums according to his/her monthly salaries as defined in the wage brackets and scales set by the State, the computing is done on the basis of the weighted average of his/her monthly salaries which have been used as basis for computing the level of his/her social insurance premiums in the five years immediately before his/her retirement.
2. For the employee who has purchased social insurance according to his/her salaries as defined in the wage brackets and scales set by the State for one period of time, and not according to them for another period of time, the computing is done on the basis of the weighted average of his/her monthly salaries which have been used as basis for computing the level of his/her social insurance premiums for both periods of time.
1. Children below 15 years of age (including the offspring, the legally adopted children, the children born out of wedlock but recognized by law, and the offspring being conceived by the wife at the time of the husband's death). If the children age still going to school, they shall be entitled to this monthly allowance till they reach 18 years of age.
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2. The number of dependents to be given this month allowance shall not exceed four persons. The allowance shall start from the date of the death of the employee. Special cases shall be decided by the Ministry of Labor, War Invalids and Social Affairs.
2. For the employee who is on monthly pension or allowance for labor accident or occupational disease, when he/she dies, his/her family shall receive a one-time allowance based on the period of time that he/she has taken the pension or allowance. If he/she dies in the first year of the pension or allowance, it shall be equal to 12 months of pension or allowance. From the second year on, each year shall be a deduction of one month of pension or allowance. But the one-time death allowance shall be at least equal to three months of pension or allowance.
THE SOCIAL INSURANCE FUND, LEVEL OF PAYMENT AND RESPONSIBILITY IN PAYING SOCIAL INSURANCE
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1. The employer shall pay an amount equal to 15% of the total salary fund of the social insurance in his/her unit, of which 10% shall be to cover pension and death allowance, and 5% to cover expenses according to regimes for sickness, maternity, labor accident and occupational disease.
2. The employee shall pay 5% of his/her monthly salary to cover expenses according to regimes for his/her pension and death allowance.
3. The State shall contribute and provide other support to ensure the implementation of the social insurance regimes for the employees.
4. Other sources.
The social insurance fund is allowed to take measures to preserve its value and grow it in accordance with the Government regulation.
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ORGANIZATION, MANAGEMENT AND IMPLEMENTATION OF SOCIAL INSURANCE
Article 41.- The Government provides unified State management of social insurance.
The Ministry of Labor, War Invalids and Social Affairs is the Government agency to exercise State management function over social insurance: It shall draft and submit for approval laws on social insurance; issue legal documents on social insurance within its jurisdiction; and provide guidance for, and control and inspection of, the implementation of social insurance.
POWERS AND RESPONSIBILITY OF THE PARTIES TO SOCIAL INSURANCE
1. The employee has the right:
- To receive the social insurance book;
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- To complain to the competent State authority when his/her employer or the social insurance organization violates the Regulation of Social Insurance.
2. The employee has the responsibility:
- To pay the social insurance premiums as required;
- To implement properly the provisions on filing for social insurance;
- To maintain and utilize the social insurance book and file as prescribed.
1. The employer has the right:
- To refuse to meet requests which vary with the provisions of the regulation on Social Insurance.
- To complain to the authorized State agency when the social insurance organization violates the Regulation on Social Insurance.
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- To contribute to the social insurance fund as prescribed;
- To make deduction of the salary of the employee to pay social insurance premiums as prescribed;
- To submit documents and files, and provide related information at the request of the social insurance controller or inspector assigned by the authorized State agency.
1. The social insurance agency has the right:
- To submit for issuance by the Prime Minister, or to issue in accordance with its jurisdiction, the regulations on the collection and expenditure of social insurance premiums, and to determine the beneficiaries of social insurance as stipulated in this Regulation;
- To organize the management of the social insurance fund to ensure the efficient implementation of the social insurance regimes;
- To educate and mobilize all people to take part in social insurance;
- To refuse to pay social insurance to the beneficiary of social insurance regimes when the authorized State agency concludes on the fakery of the file.
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- To organize the collection, management and use of the social insurance fund as prescribed;
- To implement the regimes of social insurance strictly in accordance with the provisions of this Regulation;
- To organize the payment of pension and social insurance allowances in time, in full, and with convenience;
- To settle disputes and complaints over social insurance;
- To issue annual reports on the implementation of social insurance regimes for the employer and the employee.
Chapter VI
SETTLEMENT OF DISPUTES AND HANDLING OF VIOLATIONS OF SOCIAL INSURANCE
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Apart from reducing or canceling the right to social insurance, the holder of false file is obliged to refund in full the social insurance money that he/she has benefited, and shall, depending on the extent of the violation, be sanctioned administratively or investigated for penal liability.
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Workers in rubber industry who are benefiting allowances under Decision No.206-CP on the 30th of May, 1979 of the Government, shall on their death be entitled to the burial expense stipulated in Article 31 of this Regulation, to be given to their families.
2. The employee, who works outside the State sector and has for a period of time paid social insurance premiums in accordance with the State provisions prior to the effective date of this Regulation and who has not taken the one-time allowance of social insurance, shall have that period of time accounted for in his/her claim for social insurance.-
- 1 Decree of Government No. 152/2006/ND-CP of December 22, 2006 guiding a number of articles of the law on social insurance regarding compulsory social insurance
- 2 Decree of Government No. 152/2006/ND-CP of December 22, 2006 guiding a number of articles of the law on social insurance regarding compulsory social insurance