Question: Dear lawyers, currently, my company has employees who are foreign workers. However, I still haven’t fully understood the social insurance and health insurance benefits that foreign workers are entitled to. Specifically: sickness, retirement, social insurance for the elderly and occupational accidents, what are the benefits and compensations? Hope you can help me with answer.
Answer:
SB Law Company Limited thank you for your interest in our legal consulting services. Regarding your question, we would like to consult the following:
- About health insurance
1.1. Benefits and compensations for sickness scheme.
Article 6 of Decree No. 143/2018/ND-CP has regulations on sickness scheme for foreign workers as follows:
(i) Condition for Sickness Scheme
– Having an illness or an accident that is not an occupational accident which made the worker can not work; and have the certification of a competent medical examination facility according to regulations of the Ministry of Health.
In case of illness or accident (that made the worker can not work) happened due to self-destruction of health, drunkenness or use of narcotics or drug precursors according to the list prescribed by the Government, they are not entitled to the sickness scheme.
– Having to take leave from work to take care of sick children under 07 years old and certified by a competent medical examination facility.
(ii) Sickness Scheme period
– Working in normal conditions, workers are entitled to 30 days if they have paid social insurance premium for less than 15 years; 40 days if the payment is from full 15 years to less than 30 years; 60 days if paid for full 30 years or more;
– Do heavy, toxic, dangerous occupations or jobs or work particularly hard, toxic or dangerous on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health, or work in places where regional allowance rate is at 0.7 or higher, they are entitled to 40 days if they have paid social insurance premium for less than 15 years; 50 days if the payment is from full 15 years to less than 30 years; 70 days if paid for full 30 years or more.
– Employees who take sick leave due to illness on the List of diseases requiring long-term treatment promulgated by the Ministry of Health are entitled to sickness scheme for up to 180 days, including public holidays, Lunar New Year holidays and weekly rest days.
– In case that the workers are getting the sickness scheme for a full period of sickness scheme in a year but not yet recovering, workers are entitled to convalescence and health rehabilitation.
(iii) Compensations of sickness scheme.
– Sick foreign workers are entitled to a maximum of 75% of the salary on which social insurance are based in the preceding month before leaving.
In case that the worker has just started to work or the worker who has previously paid social insurance premium, and then has his/her working time interrupted made he/she must leave work to get sickness scheme within the first month of their return, the compensation is equal to 75% of the salary of that month on which social insurance are based.
– Employees who continue to get the sickness scheme, specified at Point b, Clause 2, Article 26 of the Law on Social Insurance 2014, shall get these following allowances:
- a) Equal to 65% of the salary on which social insurance are based of the month immediately preceding the leave, if the employee has paid social insurance premium premiums for 30 years or more;
- b) Equal to 55% of the salary on which social insurance are based of the month immediately preceding the leave, if the employee has paid social insurance premium for 15 years to less than 30 years;
- c) Equal to 50% of the salary on which social insurance are based of the month immediately preceding the leave, if the employee has paid social insurance premium for under 15 years
– Employees who continue to get the sickness scheme, specified at Clause 3, Article 26 of the Law on Social Insurance 2014, shall get a compensation equal to 100% of the salary on which social insurance are based of the month immediately preceding the leave.
– One-day compensation is determined as the monthly sickness compensation divided by 24 days.
1.2. About retirement, pension and its compensation.
Article 9 of Decree No. 143/2018/ND-CP has regulations on retirement and pension scheme for foreign workers as follows:
(i) Condition for pension:
When leaving work for full 20 years of paying social insurance premium or more, they will be entitled to a pension if they are in one of the following cases:
– Male who reaches the age of 60, female who reaches the age of 55;
– Male who reaches the age of 55 to 60, female who reaches the age of 50 to 55 and have full 15 years of working in heavy, hazardous or dangerous occupations or jobs or particularly heavy, hazardous or dangerous jobs on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health, or work in places where regional allowance rate is at 0.7 or higher;
– Employees aged between 50 and 55 years old and have paid social insurance premium for 20 years or more, including 15 years of working in coal mining in underground mines;
– People infected with HIV/AIDS due to occupational accidents.
(ii) Compensation:
– Monthly pension:
+ Employee’s monthly pension is determined by multiplying the rate of monthly pension by the average monthly salary on which social insurance are based.
+ The monthly pension rate of employees eligible for pension as prescribed in Article 54 of the Law on Social Insurance is determined as follows:
- Employees who retire from January 1, 2016 to before January 1, 2018, the monthly pension rate is determined at 45%, corresponding to 15 years of paying social insurance premium, then for each year of paying social insurance premium, an additional 2% will be charged for men and 3% for women; up to 75%;
- Female employees who retire from January 1, 2018 onward, the monthly pension rate is determined at 45% corresponding to 15 years of paying social insurance premium, then for each year of paying social insurance premium, an additional 2% will be charged, up to 75%;
- Male employees who retire from January 1, 2018 onward, the monthly pension rate is determined at 45% corresponding to years of paying social insurance premium by the table below, then for each year of paying social insurance premium, an additional 2% will be charged, up to 75%.
– Single premium policy:
+ Employees who have paid social insurance premium for a period of time higher than the number of years corresponding to the pension enjoyment rate by 75%, when they retire, in addition to their pensions, they will also get a lump-sum allowance.
+ Lump-sum allowance is determined by number of years of paying social insurance premium which is higher than the number of years corresponding to the pension rate of 75%. For each year of paying social insurance premium, it is determined as 0.5 months of the average monthly salary went for social insurance premium.
- About retirement plan
2.1. About Social Insurance for elderly.
Pursuant to Clause 2, Article 2 of Decree No. 143/2018/ND-CP, there are regulations on compulsory social insurance for foreign workers working in Vietnam as follows:
“2. Employees specified in Clause 1 of this Article are not eligible to participate in compulsory social insurance as prescribed in this Decree when falling into one of the following cases:
- a) Moving within an enterprise according to the provisions of Clause 1, Article 3 of the Government’s Decree No. 11/2016/ND-CP dated February 3, 2016 detailing the implementation of a number of articles of the Code Labor for foreign workers working in Vietnam;
- b) The employee has reached the retirement age as prescribed in Clause 1, Article 187 of the Law on Labor”.
Referring to Clause 2, Article 169 of the Labor Code 2019 stipulating that from 2021, the retirement age of employees in normal working conditions is exact 60 years and 03 months for male employees and exact 55 years and 04 months for female employees; after that, each year increases by 03 months for male employees and 04 months for female employees.
Thus, according to the mentioned regulation for foreign workers who have reached the retirement age in 2021, for men who are exact 60 years old and 3 months, for women who are exact 55 years old and 4 months old, they will not be subject to compulsory social insurance participation.
2.2 About social welfare and compensation.
(i) Social welfare’s targets.
According to Clause 5, Article 5 of Decree 20/2021/ND-CP, the elderly will be entitled to a monthly social welfare if they fall into one of the following cases:
- a) The elderly are poor households, have no people with obligations and rights to serve them or have people with obligations and rights to take care of them, but these people are receiving monthly social welfare;
- b) Elderly people from exact 75 years old to 80 years old belonging to poor households, near-poor households not specified at Point a of this Clause are living in communes and villages in ethnic minority areas and in mountainous areas and particularly difficult;
- c) Persons aged full 80 years or older who are not specified at Point a of this Clause and do not have a monthly pension, social insurance allowance or monthly social allowance;
- d) The elderly belong to poor households, do not have anyone with obligations and rights to take care of them, do not have the conditions to live in the community, and are eligible for admission to social assistance establishments but have someone to take care of them in the community.
(ii) Compensation:
The subjects specified in Article 5 of this Decree are entitled to a monthly social welfare equal to the standard level of social assistance specified in Article 4 of this Decree multiplied by the corresponding coefficient specified as follows:
For the subjects specified in Clause 5, Article 5 of Decree 20/2021/ND-CP:
– Rate 1.5 for subjects specified at Point a, Clause 5, from exact 60 to 80 years old;
– Rate 1.5 for subjects specified at Point a, Clause 5, from exact 80 years old;
– Rate 1.0 for subjects specified at Point b and c, Clause 5;
– Rate 3.0 for subjects specified at Point d, Clause 5.
The standard social welfare level applied from July 1, 2021 is VND 360,000/month.
- About the occupational accident insurance and compensation.
Article 8 of Decree No. 143/2018/ND-CP has regulations on the occupational accident insurance for foreign workers as follows:
(i) Conditions:
Employees participating in occupational accident and occupational disease insurance are entitled to the occupational accident scheme when fully meet the following conditions:
- Having an accident in one of the following cases:
- a) At the workplace and during working hours, even when performing necessary daily needs at the workplace or during working hours prescribed by the Law on Labor and internal regulations the company, including breaks, mid-shift meals, in-kind refreshments, menstrual hygiene, bathing, breastfeeding, toileting;
- b) Outside the workplace or outside working hours when performing work at the request of the employer or the person authorized by the employer by labor management documents;
On the route from the place of residence to the place of work or from the place of work to the place of residence within a reasonable time and route;
- Working capacity decrease from 5% or more due to an accident specified in Clause 1, Article 45 of the Law on Occupational Safety and Health;
- An employee is not entitled to the scheme paid by the Insurance Fund for Occupational Accidents and Diseases if it falls under one of the causes specified in Clause 1, Article 40 of the Law on Occupational Safety and Health.
(ii) Occupational accident insurance compensation
– Lump-sum allowance (decreased from 5% – 30%): 5% reduction is entitled to 05 times the base salary, for every additional 1% decrease, 0.5 times the base salary.
– Monthly allowance (decreased from 31% or more): 31% reduction is entitled to 30% of the base salary, for every additional 1% decrease, 2% of the base salary.
(iii) Living aids, orthopedic devices
Depending on the condition of the injury, the function of the body which is affected.
(iv) Service allowance (in addition to the monthly allowance)
The compensation level is equal to the base salary if there is a reduction of 81% or more but suffers from spinal paralysis, blindness in both eyes, amputation, paralysis of two limbs or mental illness.
(v) Conserve and recover health after treating an injury or illness:
– Maximum: 10 days off;
– Getting 25% of the base salary/day if staying at home; 40% of the base salary/day if staying at a centralized facility.
(vi) Allowance for death due to work accident or occupational disease:
One-time allowance equal to 36 times the base salary.
