On May 27, 2020, the Government issued Decree No. 58/2020/ND-CP, effective from July 15, 2020, stipulating that the mandatory social insurance contribution rate to the occupational accident and disease insurance fund is lower than the normal rate.
Accordingly, businesses that meet the following conditions when submitting proposals will have their mandatory social insurance contributions to the Occupational Accident and Disease Insurance Fund reduced by 0,5% (Article 22 of Decision 595/QD-BHXH reduces the contribution rate to 0,3% of the monthly wage fund for social insurance contributions (point b, Clause 1, Article 4 of Decree 58/2020/ND-CP).)
1. Conditions for reducing mandatory social insurance contributions to the Occupational Accident and Disease Insurance Fund in 2020
According to Article 5 and point b, clause 1, Article 4 of Decree 58/2020/ND-CP, effective from July 15, 2020, employers operating in industries with a high risk of occupational accidents and diseases are required to contribute to the Occupational Accident and Disease Insurance Fund at a rate of 0,3% of the monthly wage fund subject to social insurance contributions if they meet the following three conditions:
- Within the three years prior to the proposal date, the applicant must not have been subject to administrative penalties in the form of fines, nor prosecuted for criminal liability related to violations of laws on occupational safety and health and social insurance;
- Submit accurate, complete, and timely periodic reports on occupational accidents and occupational safety and health for the three consecutive years preceding the proposal year;
- The frequency of occupational accidents in the year immediately preceding the year of the proposal must decrease by 15% or more compared to the average frequency of occupational accidents in the three years immediately preceding the year of the proposal, or there must have been no occupational accidents in the three years immediately preceding the year of the proposal.
2. Application for a reduction in mandatory social insurance contributions.
Article 6. Applications for a lower contribution rate than the normal rate to the Occupational Accident and Disease Insurance Fund.
1. The request document must comply with Form No. 01 in the Appendix issued with Decree 58/2020/ND-CP.
2. A certified copy of the report on the assessment of occupational safety and health and reduction of occupational accidents conducted by an occupational safety and health assessment organization.
3. Procedures for proposing a reduction in mandatory social insurance contributions.
Step 1: Submit your application
Employers submit a set of documents either in person or online to the Ministry of Labour, Invalids and Social Affairs.
Step 2: Handling records
The processing time for the application is 30 days from the date of receipt of complete documents from the employer.
Note:
- If the payment is accepted, the period for implementing the lower payment rate is 36 months, starting from the month the decision to apply the lower rate takes effect.
- Within 60 days before the expiration date of the lower contribution rate, if the employer still wishes to continue the application, they should prepare another set of documents and submit the request following the procedure outlined above.