Chapter XII - Social insurance

* This translated version is originated from Ministry of Justice and for reference only.

Article 140.-

1- The State shall enact policies of social insurance to expand and raise gradually the material well-being of the employee and his/her family, thus contributing to the stabilization of their life in times of sickness, pregnancy, retirement, death, labor accident, occupational disease, loss of employment or other misfortunes and difficulties.

2- Various forms of obligatory or voluntary social insurance shall be provided to each type of employee and business, to assure that the employees have access to appropriate forms of social insurance.

Article 141.-

1- Obligatory forms of social insurance shall apply to businesses employing more than 10 employees. At these businesses, the employer as well as the employee must pay the social insurance premiums, as defined at Article 149 of this Code, and the employee is beneficiary of social insurance allowances in the event of sickness, labor accident, occupational disease, pregnancy, retirement or death.

2- With regard to the employee working in a business employing fewer than 10 employees, performing jobs lasting less than three months, or jobs of a seasonal or temporary character, the employee's social insurance allowances shall be included in his/her salary paid by the employer, so that he/she can join a social insurance scheme of his/her choice or look after his/her own insurance.

Article 142.-

1- In the event of sickness, the employee is entitled to medical examinations and treatment at medical facilities, according to the provisions of the medial insurance.

2- The employee who becomes sick, and is allowed by the doctor to be treated at home or at the hospital, shall receive a sickness allowance paid by the social insurance fund.

The level of this sickness allowance depends on the type and condition of work, the social insurance premiums the employee has paid and the time length of his/her buying them. This level is set by the Government.

Article 143.-

1- During the employee's medical treatment following a labor accident or as a result of an occupational disease, the employer must pay the full salary and medical expenses for the affected employee, as provided for in Item 2, Article 107, of this Code.

After the treatment, depending on the level of his/her disability as a result of the labor accident or occupational disease, the employee shall be examined by the Medical Examination Board, which will classify the degree of his/her disability for the allocation of his/her disability allowance to be paid either once for all or monthly by the social insurance fund.

2- If, during the course of the employment, the employee dies as a result of a labor accident or occupational disease, his/her closest relatives shall receive a death indemnity, as defined in Article 146 of this Code, plus an allowance from social insurance amounting to 24 months of the minimal salary set by the Government.

Article 144.-

1- If during her maternity leave, as defined at Article 114 of this Code, if the female employee has paid her social insurance premium, she shall receive a social insurance benefit equal to 100% of her salary, plus an allowance equal to one month salary if she gives birth to her first or second child.

2- The other regimes concerning female employees shall apply as defined at Article 117 of this Code.

Article 145.-

1- The employee shall benefit from a monthly pension if he/she meets the following conditions on age and social insurance premium:

a/ The employee is 60 years of age for men and 55 years of age for women. The personable age of the employees who work on heavy or noxious jobs or in highlands, border regions, off-shore islands and some special cases shall be defined by the Government.

b/ The employee has paid his/her social insurance premium for at least 20 years.

2- The employee who does not meet all the conditions stated above shall also receive a monthly pension at a lower rate if he/she fills one of the following conditions:

a/ He/she has reached the age stipulated at Point (a), Item 1, of this Article and has paid his/her social insurance premiums for at least 15 years.

b/ The employee has paid his/her social insurance premiums for at least 20 years and is at least 50 years of age for men and 45 years of age for women and who has lost at least 61% of his/her working capacity;

c/ The employee performs especially heavy or noxious jobs as prescribed by the Government and has paid his/her social insurance premiums for at least 20 years and has lost at least 61% of his/her working capacity.

3- An employee who cannot meet the conditions for entitlement to the monthly pension as defined in Items 1 and 2 of this Article shall receive a package allowance.

4- The level of monthly pension and package allowance, defined in Item 1, 2 and 3 of this Article, depends on the levels of the premium and the number of years it has been paid, which are prescribed by the Government.

Article 146.-

1- When an employee, a pensioner or a beneficiary of monthly allowances for labor incapacitation, labor accident or occupational disease, dies, the person in charge of his/her funeral shall receive a funeral allowance, prescribed by the Government.

2- A monthly allowance shall be granted to the close relative of an employee who dies as a result of a labor accident, an occupational disease, who dies after having paid his/her social insurance premiums for more than 15 years, who dies while benefiting from a monthly pension or monthly allowance for labor accident or occupational disease, who has children under 15 years of age, or whose spouse or parents are past the working age whom he/she directly catered for while he/she was living. If the deceased employee has no relatives eligible for a monthly allowance or has not paid his/her social insurance premiums for 15 years, his/her family shall receive a package allowance, but this may not exceed an amount equal to 12 months of his/her salary or of the allowance he/she had been receiving.

3- The beneficiary of the pension system, of the allowance for labor incapacitation or the allowance for labor accidents, in degrees 1 and 2, or occupational diseases, in degrees 1 and 2, prior to the effective date of this Code, shall benefit from the death allowance provisions stipulated in this Article.

Article 147.-

1- The time worked by an employee of a State owned business before this Code becomes effective shall be covered by the social insurance if the employee has not received the severance allowance or the package allowance paid by the social insurance fund.

2- Social insurance benefits of pensioners, beneficiaries of monthly allowances for labor incapacitation, labor accident, occupational disease and death, prior to the effective date of this Code, shall be assured by the State budget and shall be readjusted to fit in with the social insurance policy in force.

Article 148.- Businesses engaged in agriculture, forestry, fishery and salt production have the responsibility to take part in different forms of social insurance suitable to the characteristics of their production and use of labor in each branch, according to the Statute on Social Insurance.

Article 149.-

1- The social insurance fund is funded by the following sources:

a/ Contribution by the employer representing 15% of the total wage fund;

b/ Contribution by the employee representing 5% of his/her wage;

c/ Contributions and allowances by the State to ensure the implementation of the social insurance policy for the employee; and

d/ Other sources.

2- The social insurance fund is placed under unified management, according to the financial regulations of the State and the system of independent accounting, and is protected by the State. The fund is authorized to take measures to preserve its value and increase its growth, according to prescriptions of the Government.

Article 150.- The Government shall issue the Statute on Social Insurance, establish a system of social insurance and promulgate the Rules on Organization and Operation of the Social Insurance Fund with the participation of the Vietnam General Confederation of Labor.

Article 151.-

1- The employee taking part in the social insurance scheme shall receive full social insurance benefits in an expeditious and timely manner.

2- Any dispute arising between the employee and the employer concerning social insurance shall be settled according to the provisions of Chapter XIV of this Code. If a dispute involves the social insurance agency, it shall be settled according to the Rules on Organization and Operation of the Social Insurance Fund.

Article 152.- The State encourages employees, trade unions, employers and other social organizations to establish social mutual assistance funds.