From July 1, 10 social insurance benefits will be increased

According to information from the Ministry of Home Affairs, the Politburo has agreed that from July 1, the basic salary will increase from VND 1,800,000 million to VND 2,234,000 for all cadres and civil servants.

Because the current Law on Social Insurance (SI) has 10 SI regimes calculated based on the basic salary. Therefore, when the basic salary is adjusted to 2,340,000 VND, the regimes associated with the basic salary are expected to be adjusted to increase accordingly.

Sickness allowance

The 2014 Law on Social Insurance stipulates that employees who have taken sick leave for the full period of time in a year as prescribed in Article 26 of this Law, and whose health has not yet recovered within the first 30 days of returning to work, are entitled to 5 to 10 days of rest and recuperation within a year.

This leave includes holidays, Tet and weekly breaks.

When employees take health care leave, they will not be paid by the company but will be paid social insurance benefits by the Social Insurance agency.

Sickness allowance/day = 30% x Basic salary.

Thus, after July 1, 2024, the sickness allowance will increase by VND 702,000/day compared to VND 540,000/day before July 1, 2024.

One-time allowance for childbirth

The 2014 Law on Social Insurance stipulates that female employees who give birth or employees who adopt children under 6 months old are entitled to a one-time allowance for each child equal to 2 times the basic salary in the month the female employee gives birth or the month the employee adopts the child.

In case of giving birth but only the father participates in social insurance, he/she will receive a one-time subsidy equal to 2 times the basic salary in the month of birth for each child.

The one-time allowance upon childbirth is calculated with the formula:

One-time allowance/child = 2 x Basic salary

Thus, from July 1, when the basic salary increases to VND 2.34 million/month, the one-time allowance upon childbirth will increase to VND 4,680,000 compared to VND 3,600,000 before July 1, 2024.

Postpartum health care and recovery allowance

The current Law on Social Insurance stipulates that female employees, immediately after the maternity leave period, within the first 30 working days, if their health has not recovered, are entitled to rest and recuperate for 5 to 10 days.

This time includes holidays, Tet holidays, and weekly days off. If there is time off for recuperation from the end of the previous year to the beginning of the following year, that time off will be counted for the previous year.

During maternity leave, employees are not paid by the company but are paid social insurance benefits by the Social Insurance agency.

Maternity leave allowance/day = 30% x Basic salary.

Thus, the level of maternity leave benefits for employees after July 1, 2024 when the basic salary increases will be adjusted to VND 702,000/day. Compared to the level before July 1, 2024, it was VND 540,000/day.

Adjustment to increase funeral allowance

The current Social Insurance Law stipulates that relatives will receive funeral benefits when the deceased employee falls into one of the following cases: participating in social insurance, reserving social insurance payment process, receiving pension, receiving monthly occupational accident or occupational disease benefits, or dying due to occupational accident or occupational disease.

Funeral allowance = 10 x Basic salary.

Thus, when the basic salary increases, the funeral allowance also increases from 18 million VND to 23.4 million VND.

Monthly death benefit

Article 68 of the current Law on Social Insurance stipulates that the monthly death benefit paid to relatives of employees is as follows:

Relatives without direct support: Monthly allowance = 70% x Basic salary. According to the above calculation formula, when the basic salary increases to 2,340,000 VND, this level will increase to 1,683,000 VND after July 1, 2024. (This level before July 1, 2024 was 1,260,000 VND)

In the remaining cases: Monthly death benefit = 50% x Basic salary. This level after July 1, 2024 will increase to VND 1,170,000 compared to VND 900,000 before July 1, 2024.

One-time allowance for work-related accidents and occupational diseases

According to Article 48 of the Law on Labor Safety and Hygiene, employees whose working capacity is reduced from 5% to 30% are entitled to a one-time allowance.

The one-time subsidy level is specified as follows:

A 5% reduction in working capacity is entitled to five times the basic salary, then for each additional 1% reduction, an additional 0.5 times the basic salary is entitled to.

Before July 1, 2024, if the working capacity is reduced by 5%, the recipient will receive 9,000,000 VND. After that, for every additional 1% reduction, the recipient will receive an additional 900,000 VND.

After July 1, 2024, if the working capacity is reduced by 5%, the recipient will receive 11,700,000 VND. After that, for each additional 1% reduction, the recipient will receive an additional 1,170,000 VND.

Monthly allowance for loss of working capacity

Article 49 of the Law on Labor Safety and Hygiene stipulates: Employees whose working capacity is reduced by 31% or more are entitled to monthly allowances.

The monthly allowance is specifically regulated: A 31% reduction in working capacity will be paid 30% of the basic salary. Then, for every additional 1% reduction, an additional 2% of the basic salary will be paid...

Thus, before July 1, 2024, if the working capacity is reduced by 31%, the recipient will receive 540,000 VND/month. After that, for each additional 1% reduction, the recipient will receive an additional 36,000 VND/month.

After July 1, 2024, if the working capacity is reduced by 31%, the benefit is 702,000 VND/month. After that, for each additional 1% reduction, the benefit is 46,800 VND/month.

Allowance for people with work-related accidents and occupational diseases

Article 52 of the Law on Labor Safety and Hygiene stipulates: Employees whose working capacity is reduced by 81% or more, who are paralyzed by the spine or blind in both eyes or have amputated or paralyzed limbs or are mentally ill, in addition to the benefits prescribed in Article 49 of this Law, are also entitled to a monthly service allowance equal to the basic salary.

Service allowance/month = Basic salary.

Thus, before July 1, 2024, the subsidy for people with work-related accidents and occupational diseases is VND 1,800,000. After July 1, 2024, this level will increase to VND 2,340,000 when the basic salary is adjusted up.

One-time benefit for death due to work accident or occupational disease

Article 53 of the Law on Labor Safety and Hygiene stipulates that if a worker dies due to a work accident or occupational disease, his or her relatives will receive a one-time allowance:

One-time allowance = 36 x Basic salary.

When the basic salary is adjusted from July 1, 2024 to VND 2,340,000, the one-time allowance for death due to work-related accidents or occupational diseases will increase by VND 84,240,000. This payment level before July 1, 2024 was VND 64,800,000.

Post-treatment recovery level

Article 54 of the Law on Labor Safety and Hygiene, after stable treatment of injuries caused by work accidents or illnesses caused by occupational diseases, if within the first 30 days the employee's health has not recovered, the employee is entitled to rest and recuperate.

Post-treatment recuperation allowance/day = 30% x Basic salary

Accordingly, the level of post-treatment convalescence in 2024 from July 1, 2024 is 702,000 VND/day compared to the level before July 1, 2024 of 540,000 VND/day.