Answer:
- Reduction of the Employer’ payment rate into the insurance fund for labour accidents or occupational diseases
Decree 58/2020/NĐ-CP of the Government took effect from 15 July 2020 prescribes the payment rate into the insurance fund for labour accidents and occupational diseases based on the salary fund of the enterprise serving as a basis for SI payment by the Employees under 02 specific circumstances as follows (except for any Employee as a domestic servant)[1]:
- The normal payment rate is comparable to 0.5% of the salary fund of enterprise used as a basis of SI payment; at the same time, it is applicable to any Employee who is a public official, civil servant, public employee, and member of armed forces under the control authorities of the Party, State, socio-political organisations, the military, the public security forces, and public service organisations funded by the State budget;
- Payment rate comparable to 0,3% of the enterprise’ salary fund as the basis of SI payment is applied to any enterprise meeting the following conditions[2]:
- Within 03 years up to the time of the proposal, the enterprise has not been subject to any administrative penalty in the form of a monetary fine or prosecuted for criminal liability related to violations of the laws on labour safety, occupational health, and SI;
- The enterprise has made periodic reports on labour accidents and reports on labour safety and occupational health in an accurate, sufficient, and timely manner within 03 consecutive years prior to the proposed year; and
- The frequency rate of labour accidents in the year preceding the proposed year must be dropped by at least 15% as compared with the average frequency of labour accidents in 03 consecutive years prior to the proposed year or have not had any labour accidents within 03 years prior to the proposed year.
Thus, in comparison with the previous provisions of Decree 44/2017/ ND-CP of the Government dated 14 April 2017, the Employer has more advantages in fulfilling the obligation to pay insurance of labour accidents and occupational diseases for the Employees.
2. Time of applying new insurance payment rate for labour accidents and occupational diseases
The Employer in general and enterprise in particular are responsible for contributing to the insurance fund for labour accidents and occupational diseases at the new rate of 0.5% or 0.3% as prescribed in Article 4.1 of Decree 58/2020/ND-CP of Government as of 15 July 2020 at a rate of 0.5% or 0.3%.
In addition, Article 11.1 of Decree 58/2020/ND-CP also prescribes that, based on the possibility of balancing the insurance fund for labour accidents and occupational diseases, the Government considers adjusting the payment rate to the insurance fund for labour accidents and occupational diseases from time to time. Thus, the date from which Decree 58/2020/ND-CP comes into effect will be considered the time for the Government to review the balance of the insurance fund for labour accidents and occupational diseases. If necessary, the Government may adjust to the said 0.5% or 0.3% payment rate in line with the actual situation of the insurance fund for labour accidents and occupational diseases at that time.
[1] Article 16.1 and Article 4.1 of Decree 58/2020/ND-CP of the Government dated 27 March 2020
[2] Article 5 of Decree 58/2020/ND-CP of the Government dated 27 May 2020
