NEW POLICY ON COMPULSORY SOCIAL INSURANCE TAKES EFFECT FROM SEPTEMBER 1ST 2021
From September 1, 2021, Circular No. 06/2021/TT-BLDTBXH amending Circular No. 59/2015/TT-BLDTBXH officially takes effect and contains the following notable compulsory social insurance contents:
1. About subjects participating in compulsory social insurance
In addition to provisions on non-specialized workers in communes, wards and townships who are also persons entering into labor contracts specified in Point a and Point b Clause 1 Article 2 of the Law on Social Insurance, they shall participate in compulsory social insurance according to the subjects specified in Point a and Point b Clause 1 Article 2 of the Law on Social Insurance.
This means that non-specialized workers in communes, wards and towns who are also employees of labor contracts will pay compulsory social insurance at 8% of the monthly salary to the retirement and death fund.  The monthly salary as a basis for payment of this social insurance will be based on the signed labor contract but follows the principle of not lower than the regional minimum wage for employees doing the simplest work.
2. On the level of entitlement to sickness benefits
For employees who leave their jobs due to illness in the list of diseases requiring long treatment, the supplement stipulates the level of entitlement to sickness benefits of odd days not full month maximum equal to the one-month sickness allowance (currently not stipulated maximum).
For employees who are sick or have an accident that is not a labor accident, the following provisions are supplemented:
Employees who are subject to compulsory social insurance payment to the sickness and maternity fund with sickness or accidents without labor accidents or have to quit their jobs to care for sick children under 7 years old but the time off work for 14 or more working days in the month (including unpaid leave) shall be counted above the salary paid social insurance of the month preceding quitting work.
3. About the duration of maternity benefits
In case female workers are pregnant with twins or more but at birth if a child is dead or stillborn, the period of entitlement, maternity allowance for childbirth and one-time allowance for childbirth are calculated according to the number of children born, including dead or stillborn (Currently, maternity regime maternity regime is only settled for living children under Clause 3 Article 10 of Circular No. 59/2015/TT-BLDTBXH).
4. Supplementing regulations on cases of monthly death benefits
Clause 23, Article 1 of Circular 06/2021, supplemented at the end of Clause 1, Article 25 of Circular 59/2015 as follows:
The time to consider age for employees' relatives as prescribed in Clause 2, Article 67 of the Law on Social Insurance is the end of the last day of the month the employee dies.
When settling the survivorship regime, if the employee's family records cannot determine the date of birth, the date of January 1 of the year of birth shall be used to calculate the age as the basis for settlement of the survivorship regime.
The determination of the income level of the employee's relatives as a basis for settlement of monthly survivorship allowance as prescribed in Clause 3, Article 67 of the Law on Social Insurance is determined in the month the employee dies.
Relatives who have been settled for monthly survivorship allowance in accordance with regulations and then have an income higher than the base salary will still enjoy the monthly survivorship allowance.
For detailed advice and timely support on transfer procedures and documents, please contact:
Gattaca Law Firm
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