Công văn 2159/BHXH-BT

Pursuant to regulations in the Government's Decree No. 44/2017/ND-CP dated April 14, 2017 providing for compulsory insurance premium rates made to the insurance fund for occupational accidents and occupational diseases, and the Government’s Decree No. 47/2017/ND-CP dated April 24, 2017 providing for the statutory pay rate of officials, public employees and armed forces’ personnel, the Vietnam Social Security gives the following instructions on the insurance premium rates made to the insurance fund for occupational accidents and occupational diseases and collection of social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases according to new statutory pay rate.

I. Compulsory insurance premium rates made to the insurance fund for occupational accidents and occupational diseases

As of June 01, 2017, employers shall make monthly insurance premium s to the insurance fund for occupational accidents and occupational diseases in accordance with regulations Clause 3 Article 44 of the Law on Occupational Safety and Sanitation according to the following rates:

1. 0.5% of the employer's salary fund which is the basis for paying social insurance premiums prescribed in Points a, b, c, d, dd and h Clause 1 Article 2 of the Law on Social Insurance, excluding domestic workers.

2. 0.5% of the statutory pay rate for employees prescribed in Point e Clause 1 Article 2 of the Law on Social Insurance.

II. Collection of social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases according to new statutory pay rate

1. As of July 01, 2017, the statutory pay rate of VND 1,300,000/month shall be used as the basis for making payment of compulsory social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases.

1.1. Regulated entities:   

a) Employees who participate in compulsory social insurance, health insurance and unemployment insurance, and insurance for occupational accidents and occupational diseases, and also entities prescribed in Article 2 of the Decree No. 47/2017/ND-CP.

b) Employees working in foreign countries under contracts prescribed in the Law on Vietnamese Guest Workers and persons on spouse allowance in overseas Vietnamese representative missions prescribed in Point g Clause 1 Article 2 and Clause 4 Article 123 of the Law on Social Insurance in 2014.

c) Managers, Party Committee Secretaries, Deputy Party Committee Secretaries, and Chairpersons of the Trade Unions of single-member limited liability companies of which charter capital is wholly owned by the State, participating in insurance programs according to the salary coefficients stated in the Appendix I enclosed with the Government’s Decree No. 52/2016/ND-CP dated June 13, 2016 providing for salary, remuneration and bonus payment to managers of single-member limited liability companies of which charter capital is wholly owned by the State.

1.2. Social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases of the entities prescribed in Point 1.1 of this Section shall be paid according to salaries and allowances which are calculated according to the new statutory pay rate, i.e. VND 1,300,000/month, as of July 01, 2017.

In case payment of payable amounts of social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases due to increase in the statutory pay rate is made after 06 months from the date of entry into force of the Decree No. 47/2017/ND-CP, not only payables of social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases are paid but also the interests on such payables according to duration of collection of such payables in accordance with regulations in the Prime Minister’s Decision No. 60/2015/QD-TTg dated November 27, 2015 on financial management mechanism in social, health and unemployment insurance and administrative expenses; the Circular No. 20/2016/TT-BTC dated February 03, 2016 by Ministry of Finance providing instructions on implementation of financial management mechanism and administrative expenses in social, health and unemployment insurance.

2. Participants in voluntary social insurance programs may pay voluntary social insurance premiums according to the highest monthly income of VND 26,000,000/month (i.e. VND 1,300,000/month x 20 times).

3. Participants in health insurance programs shall pay health insurance premiums according to the statutory pay rate of VND 1,300,000/month.

3.1. Entities whose health insurance premiums are wholly covered by state budget: The health insurance premiums shall be paid according to the statutory pay rate of VND 1,300,000/month as of July 01, 2017. As of July 01, 2017, health insurance agencies shall adjust the health insurance premiums of holders of health insurance cards which have been granted before July 01, 2017 according to the statutory pay rate of VND 1,300,000/month.

3.2. Entities whose health insurance premiums are partially covered by state budget and household-based buyers of health insurance as of July 01, 2017: Health insurance premiums shall be paid according to the statutory pay rate of VND 1,300,000/month.

III. Implemention organization 

1. The Social Security Offices of provinces or central-affiliated cities, and the Social Security Offices of Ministry of National Defence, and Ministry of Public Security shall: Inform employers, managing units of participants in health insurance programs, collection agents, participants in voluntary social insurance programs, entities whose health insurance premiums are partially covered by state budget and household-based buyers of health insurance of insurance premiums for occupational accidents and occupational diseases and the statutory pay rate which is used as the basis for paying social insurance, health insurance and unemployment insurance premiums, and insurance premiums for occupational accidents and occupational diseases in accordance with current regulations and instructions in Sections I and II herein.

2. Vietnam Social Security shall: Request the Information Technology Center to timely revise and provide management software to serve management and operation purposes in accordance with regulations.

Request the Social Security Offices of provinces or central-affiliated cities, and the Social Security Offices of Ministry of National Defence, and Ministry of Public Security to comply with relevant regulations and instructions herein. Difficulties that arise during the implementation of this official dispatch should be promptly reported to the Vietnam Social Security for consideration./.