5 regimes and benefits when participating in compulsory social insurance

Employees are entitled to 5 benefits when paying compulsory social insurance as follows: maternity, sickness, work accident – occupational disease, retirement, death. Details of cases, conditions and social insurance benefits of each regime will be shared by fdiinvietnam.com in the article.

6 cases must participate in compulsory social insurance

Employees in the following cases must participate in compulsory social insurance:

1. Employees working under indefinite-term labor contracts or seasonal labor contracts from 3 months to less than 12 months;
2. Employees working under seasonal contracts from 1 month to less than 3 months;
3. State officials, civil servants, officers, soldiers;
4. Workers working abroad under labor contracts;
5. Directors, managers, and executives of enterprises/cooperatives who receive salaries;
6. Non-professional workers in communes, wards or towns who receive salaries.

>> See more: Subjects not required to participate in compulsory social insurance.

Conditions, duration and level of social insurance sickness benefits

Employees participating in compulsory social insurance will enjoy social insurance sickness benefits when taking sick leave due to illness, work accidents or sick leave to take care of children and will be paid sick leave by the social insurance agency.

1. Conditions for enjoying sick leave

Employees in the following cases are entitled to sick leave benefits:

• Employees who are sick or have an accident that is not a work-related accident or are being treated for a recurring injury or illness due to a work-related accident or occupational disease that results in them having to take time off work and have a certificate from a medical facility;
• Employees must take time off work to take care of sick children under 7 years old, with confirmation from a medical facility;
• Female employees return to work before the end of maternity leave and fall into one of the two above cases.

2. Sick leave time for social insurance

The maximum time to enjoy sick leave in 1 year for employees is calculated based on normal working days, excluding weekly days off, holidays, and Tet holidays. Specifically:

➨ Group 1: For workers working in normal conditions

• Maximum leave of 30 days if social insurance payment is less than 15 years;
• Maximum leave of 40 days if having paid social insurance for 15 years but less than 30 years;
• Maximum leave of 60 days if having paid social insurance for 30 years or more.

➨ Group 2: For workers doing heavy, toxic, dangerous work

Workers doing heavy, toxic, dangerous work or especially heavy, toxic, dangerous work or working in places with a regional allowance coefficient of 0.7 or higher:

• Maximum leave of 40 days if having paid social insurance for less than 15 years;
• Maximum leave of 50 days if having paid social insurance for 15 years but less than 30 years;
• Maximum 70 days off if you have paid social insurance for 30 years or more.

➨ Group 3: For employees taking leave to care for sick children

• Maximum child care leave is 20 working days if the child is under 3 years old;
• Maximum parental leave is 15 working days if the child is between 3 and under 7 years old.

➨ Group 4: For employees who take time off work due to illness requiring long-term treatment

• Maximum 180 days off, including weekly days off, holidays, and Tet holidays;
• From day 181 onwards, if the employee continues to receive medical treatment, he/she will continue to receive sick leave benefits at a lower level, but the maximum benefit period is equal to the period of social insurance contribution.

3. Sick leave benefits and how to calculate sick leave for social insurance

Sick leave benefit is the amount of money that the Social Insurance agency subsidizes for employees during the time they have to take time off work. The calculation of sick leave benefit for Social Insurance is as follows:

➨ For group 1, group 2, group 3

The level of sick leave benefits for employees in groups 1, 2, and 3 above is calculated as follows:

➨ For group 4

The level of sick leave benefits for employees in group 4 above is calculated as follows:

In there:

The month of sick leave is calculated from the first day of sick leave of that month to the previous day of the following month.

For example: Employee sick leave from March 24, 2023 to April 23, 2023 is counted as 1 month.

In case there are odd days that are not a full month (For example: the employee takes sick leave for 1 month and 9 days), the sick leave benefit for those odd days that are not a full month is calculated according to the formula below but is maximum equal to the sick leave benefit for 1 month.

The rate of sick leave benefits is calculated at 75% of the employee’s sick leave benefits in the first 180 days. From day 181 onwards, if the employee continues to receive treatment, the rate of sick leave benefits for the following period is calculated as follows:

• Equal to 65% if the employee has paid social insurance for 30 years or more;
• Equal to 55% if the employee has paid social insurance for 15 years but less than 30 years;
• Equal to 50% if the employee has paid social insurance for less than 15 years.

>> See details: Documents and procedures for receiving social insurance sickness benefits.

Conditions, duration and level of social insurance maternity benefits

1. Conditions and subjects eligible for maternity benefits

Social insurance maternity regime is an important regime and attracts the most attention from female workers. Regulations on subjects and conditions for enjoying maternity regime are as follows:

➨ Subjects entitled to maternity benefits

Maternity benefits apply to female employees in one of the following cases:

• Case 1: Female worker is pregnant;
• Case 2: Female worker gives birth;
• Case 3: Female worker who is a surrogate mother and the mother who requests surrogacy;
• Case 4: Employee adopts a child under 6 months old;
• Case 5: Female worker has an IUD inserted, employee undergoes sterilization;
• Case 6: Male employee paying social insurance has wife giving birth.

➨ Conditions for maternity benefits

• Employees in cases 2, 3 and 4 above must pay social insurance for at least 6 months within 12 months before giving birth or before adopting a child;
• Female employees who have paid social insurance for 12 months or more and have to take time off work to rest during pregnancy as required by a medical facility must pay social insurance for 3 months or more within 12 months before giving birth;
• Employees who meet the above conditions and terminate their labor contract/quit their job before giving birth or adopting a child under 6 months old are still entitled to maternity benefits.

Thus, employees who meet the above conditions after giving birth submit documents to the Social Insurance agency to receive maternity benefits according to regulations.

2. Maternity leave period

➨ Time to enjoy maternity benefits during pregnancy check-up

• Pregnant female workers are allowed to take 5 days off for prenatal check-ups, 1 day each time;
• In case a pregnant female employee lives far from a medical facility or has an illness or abnormal pregnancy condition, she is entitled to 2 days off per pregnancy check-up;
• Time off work for prenatal check-ups is calculated in working days, not including weekly days off, holidays, and Tet holidays.

➨ Time to enjoy maternity benefits when giving birth

• Total time female employees are entitled to maternity leave before and after giving birth is as follows:
  • For the case of giving birth to 1 child, it is 6 months;
  • In case of twins or more, from the second child onwards, for each child, the mother is given an additional month of maternity leave.
• The maximum time female employees are allowed to take maternity leave before giving birth is not more than 2 months.

➨ Time to enjoy postpartum rest

After the end of maternity leave, within the first 30 days of returning to work, if the female employee’s health has not recovered, she is entitled to 5-10 days of recuperation.

➨ Maternity benefit period for male employees paying social insurance whose wives give birth

The husband’s maternity leave is calculated within the first 30 days from the date the wife gives birth. Specifically:

• 5 working days off;
• 7 working days off in case of cesarean section or giving birth under 32 weeks;
• 10 working days off if wife gives birth to twins, from birth to triplets or more, for each additional child, male employees are given 3 more working days off;
• 14 working days off if wife gives birth to twins or more and has to have surgery.

➨ Maternity leave period when adopting a child

When adopting a child under 6 months old, the employee is entitled to maternity leave until the child is 6 months old (only applicable to the father or mother).

➨ Time to enjoy maternity benefits when taking contraceptive measures

• Maximum 7 days for IUD placement;
• Maximum 15 days for sterilization.

➨ Time to enjoy the regime in case of miscarriage, curettage, abortion, stillbirth or pathological abortion

• Pregnant women under 5 weeks old are entitled to a maximum of 10 days off;
• Pregnant women from 5 weeks to under 13 weeks old are entitled to a maximum of 20 days off;
• Pregnancy from 13 weeks to under 25 weeks old is entitled to a maximum of 40 days off;
• Pregnant women from 25 weeks of age or more are entitled to a maximum of 50 days off.

➨ Maternity leave period for surrogate mothers and intended mothers

• Female surrogate mothers are entitled to full maternity benefits like others during pregnancy, childbirth or miscarriage/abortion until the time the child is handed over to the mother who requested the surrogacy;
• In case the period from the date of birth to the date of delivery of the child is less than 60 days, the surrogate mother is still entitled to maternity benefits until the 60 days are up, including weekly days off, holidays, and Tet holidays;
• The surrogate mother is entitled to maternity benefits from the time of receiving the child until the child is 6 months old.

3. Maternity benefits and how to calculate maternity pay

• The monthly benefit is equal to 100% of the average monthly salary for social insurance contributions of the 6 months prior to taking maternity leave;
• The daily benefit (for cases of leave for prenatal check-ups or male workers whose wives give birth) is equal to the monthly maternity benefit divided by 24 days;
• Female workers who give birth or workers who adopt children under 6 months old are entitled to a one-time subsidy, including:
  • One-time subsidy is equal to 2 times the basic salary;
  • The current basic salary is 1,490,000 VND, from July 1, 2023 the basic salary is 1,800,000 VND.

>> See details: How to calculate maternity pay and documents and procedures for maternity insurance benefits.

Conditions and levels of benefits for work-related accidents and occupational diseases

1. Conditions for receiving occupational accident benefits

Employees participating in compulsory social insurance are entitled to occupational accident benefits when meeting the following conditions:

➨ One is, having a work accident in one of the following cases:

• Accidents during working hours and at work; 
• Accident outside working hours or outside the workplace while performing work as required by the business;
• Had an accident on the way to and from work within a reasonable time and route.

➨ Second, there is a hospital certificate of reduced working capacity of 5% or more.

2. Conditions for receiving occupational disease benefits

• When suffering from an occupational disease listed by the Ministry of Health and the Ministry of Labor, War Invalids and Social Affairs;
• Have a medical certificate proving a 5% or more reduction in working capacity due to illness.

3. Level of benefits for work accidents and occupational diseases

When a worker has a work accident or occupational disease that results in a reduction in working capacity from 5% to 30%, he/she is entitled to a one-time allowance.

The one-time subsidy level is specified as follows:

• A 5% reduction in working capacity will result in a benefit of 5 times the basic salary, then for each additional 1% reduction, a benefit of 0.5 times the basic salary will result;
• In addition, employees also receive an additional allowance calculated based on the number of years of social insurance contributions, specifically:
  • The number of years of social insurance payment from 1 year or less is calculated as 0.5 months;
  • Then, for each additional year of social insurance payment, 0.3 months of social insurance salary of the month immediately preceding the leave for treatment will be calculated.

The time to receive the allowance is calculated from the month the employee finishes treatment and is discharged from the hospital.
In case the employee dies due to a work accident or occupational disease or dies during the first treatment period due to a work accident or occupational disease, the employee’s relatives will receive a one-time allowance equal to 36 times the basic salary.

>> For details , see: Conditions and calculation of occupational accident and disease benefits.

Conditions, levels and duration of pension benefits

1. Conditions for receiving pension in 2023

Employees are entitled to pension if they meet the following conditions:

• When retiring, having participated in social insurance for 20 years or more;
• Reach retirement age as prescribed by the Labor Law.

Retirement age for workers in 2023
Male	Female	Applicable cases
60 years 9 months	56 years old	– Workers work in normal conditions
55 years 9 months	51 years old	– Employees whose labor capacity is reduced by 61% or more – Employees working for 15 years or more, doing heavy, toxic, dangerous or especially heavy, toxic, dangerous work – Employees working for 15 years or more in areas with particularly difficult economic conditions, including working time in areas with regional allowance coefficient of 0.7 or higher before January 1, 2021

2. Pension level

Monthly pension levels for employees participating in compulsory social insurance in 2023 are as follows:

The percentage of monthly pension for employees is specified as follows: 

➨ For male workers

• 45% of the average monthly salary for social insurance contribution corresponding to 20 years of social insurance contribution;
• Then each year pay 2% more, maximum 75%.

➨ For female workers

• 45% of average monthly salary for social insurance contribution corresponding to 15 years of social insurance contribution;
• Then each year of payment is calculated with an additional 2%, up to a maximum of 75%.

➨ For female workers working full-time or part-time

Female workers working full-time/part-time in communes, wards and towns who are eligible for pension are calculated based on the number of years of social insurance contributions and the average monthly salary for social insurance contributions:

• 15 years of social insurance payment is calculated at 45% of the average monthly salary for social insurance payment;
• From 16 to 20 years of social insurance payment, each year of payment will be calculated with an additional 2%.

➨ For workers retiring before age

The monthly pension of a person eligible for early retirement is calculated as that of a person retiring at full age, then reduced by 2% for each year of early retirement.

Subjects and levels of death benefit

When an employee passes away, relatives or those in charge of the funeral will receive funeral benefits, monthly death benefits and one-time death benefits. Specifically:

1. Funeral allowance

➨ Subjects eligible for one-time funeral allowance

In the following cases, when a person dies, the person in charge of the funeral will receive a one-time funeral allowance:

• Employees who have paid social insurance for 12 months or more (including compulsory and voluntary social insurance participation);
• Workers who die due to work-related accidents, occupational diseases or during treatment due to work-related accidents or occupational diseases;
• People who are receiving pensions, monthly occupational accident and disease benefits and have retired.

➨ Funeral allowance level

• Relatives of deceased workers will receive a funeral allowance equal to 10 times the basic salary;
• Specifically, from July 1, 2023, the basic salary is 1,800,000 VND/month, so the funeral allowance is 18,000,000 VND.

2. Monthly death benefit

➨ Cases eligible for monthly survivor benefits

When a worker falls into one of the following cases and dies, his/her relatives will receive a monthly pension:

• Have paid compulsory social insurance for 15 years or more but have not received one-time social insurance;
• Loss due to work accident, occupational disease or during treatment due to work accident, occupational disease;
• Currently receiving monthly occupational accident and disease benefits with a working capacity reduction of 61% or more;
• Currently receiving pension but previously had compulsory social insurance payment period of 15 years or more.

➨ Monthly pension level

• The monthly allowance for each relative is equal to 50% of the basic salary; 
• In case the relative has no direct caregiver, the monthly allowance is equal to 70% of the basic salary.

3. One-time death benefit

➨ Cases eligible for one-time death benefits

If an employee dies in one of the following cases, his/her relatives will receive a one-time death benefit:

• Not eligible for monthly pension;
• Belonging to one of the cases entitled to receive monthly pension but having no relatives receiving monthly pension;
• Relatives who are eligible for monthly death benefits but wish to receive a one-time death benefit, except for children under 6 years old, children/spouse/husband with a working capacity reduction of 81% or more.

➨ One-time death benefit level

The one-time death benefit is equal to 1.5 months of the average monthly salary for social insurance contributions (before 2014) and equal to 2 months of the average monthly salary for social insurance contributions for the years of contribution from 2014 onwards.
The one-time death benefit for relatives of a deceased pensioner is calculated based on the pension period:

• If the person dies within the first 2 months of receiving pension, the one-time death benefit is equal to 48 months of current pension; 
• If you die in the following months, for each additional month of pension received, the benefit will be reduced by 0.5 month of pension, the lowest level is equal to 3 months of current pension.

Note:

The lowest one-time death benefit level is equal to 3 months of the average monthly salary for social insurance contributions.

Some questions about employee benefits when participating in social insurance