Vietnam’s Social Insurance Reduction: Decree 58 on Occupational Diseases and Accidents

Eligibility under Decree 58

Businesses that operate in the specific sectors under the occupational diseases and accident category are eligible to contribute to a lower rate of 0.3 percent compared to the current rate or 0.5 percent:

These include:

1. Petroleum;
2. Plastic or rubber-based chemical production;
3. Metal production;
4. Mining;
5. Construction;
6. Shipbuilding;
7. Power generation and transmission;
8. Fishery and aquatic processing;
9. Garment, apparels or shoes manufacturing;
10. Scrap recycling; and
11. Environment cleaning.

Businesses that want to apply for the lower SI contribution rate must meet the following conditions as stipulated in Article 5 of Decree 58:

• They should not have been subject to administrative or penal liability in violation of occupational safety, safety, sanitation, and social insurance in the past three years;
• Have reported occupational accidents, safety, and sanitation issues accurately and in a timely manner for the past three years; and
• The number of accidents in the last year has been reduced by at least 15 percent compared to the average of the last three years; or
• No accidents have occurred in the last three years.

Businesses will then need to submit an application form with the relevant documents such as Form 1 in Decree 58 to the Ministry of Labor, Invalids and Social Affairs (MOLISA).
If approved, the social insurance contribution reduction for the business will be valid for a period of three years. The business can renew the application to continue to benefit from the lower contribution rate.