OVERVIEW OF COMPULSORY INSURANCE(Social, Health & Unemployment Insurance)

- HR Dept.-

PARTICIPANTS FOR COMPULSORY INSURANCE

Employee:

Vietnamese employee: who signs labor contract with term

from 12 months above.

Foreign employee: who signs labor contract with term

from 12 months above is also subject for health insurance

payment.

Employer: All types of companies: State-owned, private,

foreign companies

BENEFITS OF SOCIAL INSURANCE

SOCIAL INSURANCE

4

Retirement

Death 5

1Sick leave

1Sick leave

11Sick leave

2Pregnancy

leavePregnancy

leave

2Pregnancy

leave

2

3

Labor accidentLabor accidentLabor accident

3

Labor accident

BENEFITS OF SOCIAL INSURANCE

Sick Leave

Individual sickness

Child sickness

Long-term sick leave

Convalescence and health restoration regimes

Pregnancy Leave

Pregnancy leave for medical examinationMaternity leaveor Baby adoption (baby under 4 month old)

Losing pregnancy

Labor Accident

-During the work time, or at the work place, including overtime work required by the employer- Outside the work place while on assignment by the employer- En route to and from place of work and residence

Retirement

Retirement pension

Retirement allowance

01 time SI allowance

Death

Funeral expense

Monthly death allowance for relatives

BENEFITS OF SOCIAL INSURANCE – SICK LEAVETypes of sick

leaveConditions for sick

leave Time limit Payment by SI

Individual sickness

Qualified doctor certificate for sick leave

Maximum 30 working days per year. 75% of SI salary

Child sickness

Qualified doctor certificate for sick leave due to child sickness

- If child under 3 years old: maximum 20 working days per year.- If child under 7 years old: maximum 15 working days per year.

75% of SI salary

Long-term sick leave

Qualified doctor certificate for long-term sick leave

Based on the list of diseases that need long-term treatment

- First 180 days of treatment: 75% of SI salary- Second 180 days of treatment: 45% of SI salary (Percentage is based on the SI attendance duration.

Convalescence and health restoration regimes

Qualified doctor certificate for convalescence and health restoration

- From 5 to 10 days based on the type of diseases.

- 40% of minimum wage of salary per day: Convalescence at hospital- 25% of minimum wage of salary per day: Convalescence at home.

BENEFITS OF SOCIAL INSURANCE – PREGNANCY LEAVE

Types of pregnancy leave

Conditions for pregnancy leave Time limit Payment

by SI

Pregnancy leave for medical examination

- Female employee- Qualified doctor certificate for medical examination

- 05 leave days 100% of SI salary

Maternity leaveor Baby adoption (baby under 4 month old)

- Qualified doctor certificate for birth delivering- Child's birth certificate

- 4 month leave 100% of SI salary

Losing pregnancy- Qualified doctor certificate of losing pregnancy

- 10 days: Under 01 month pregnancy- 20 days: From 01 month to under 03 month pregnancy- 40 days: From 04 month to under 06 month pregnancy- 50 days: From 06 month above pregnancy

100% of SI salary

BENEFITS OF SOCIAL INSURANCE – LABOR ACCIDENT

Types of benefit

Conditions for compensation for labor accident Payment by SI

Labor accident

- Qualified doctor certificate for labor disability- Labor disability from 05% above can be paid

- Based on the percentage of labor disability- Based on the SI attendance time- Based on the regulation of SI

BENEFITS OF SOCIAL INSURANCE – RETIREMENT

Types of retirement benefits

Conditions for compensation for labor accident Payment by SI

Retirement pension- 20 year contribution to SI- Male: enough 60 year old- Female: enough 55 year old

- First 15 years: 45% of average SI salary- From the 16th year up will increase each year 2% for male, 3% for female

Retirement allowance

- Over 30 year contribution to SI for male - Over 25 year contribution to SI for female

- From the year 31st for male and the year 26th for female: 01 additional year ~ 0.5 month of average SI salary

01 time SI allowance

- Enough 1 year contribute to social insurance- Unemployment- Emigrant

- 01 year of SI contribution ~ 1.5 month of average SI salary

BENEFITS OF SOCIAL INSURANCE – DEATHTypes of

retirement benefits

Conditions for compensation for labor accident Payment by SI

Funeral expense

- The employee who is working- Who has ceased working and is waiting for his/her pension to be processed;- Who is on monthly pension or allowance for labor accident or occupational disease, when he/she dies, - Employees are paying social insurance or on retirement paid by SI co.

- 10 months of minimum wage of salary

Monthly death allowance for relatives

- At least 15 years paid social insurance- Who is waiting for his/her monthly pension or who is on pension- Who suffers from labor accident or occupational disease

- Relative who has supporter: Monthly allowance ~ 50% of minimum wage of salary- Relative who does not have supporter: Monthly allowance ~ 70% of minimum wage of salary

BENEFITS OF HEALTH INSURANCE

HEALTH INSURANCE

Medical Examination Medical Treatment

1. Use HI card to reduce the

examination fee directly.

2. Take the qualified VAT

invoice to ask for refund with

SI office.

1. Use HI card to reduce the

examination fee directly

2. Types of treatment

Non hospital residence

treatment:

Hospital residence

treatment:

3. Take the qualified VAT to

ask for refund with SI office.

BENEFITS OF HEALTH INSURANCEMedical examination: Medical treatment:

- Use the health insurance card to reduce the fee directly at hospital.- At specific hospital in the health insurance card or any hospital in case of emergency: Support 80% of medical examination fee stipulated with the list of medical examination fee issued by MOH.- For other hospital: • Support 70% of medical examination fee: At the 3rd level hospital or not listed hospital.• Support 50% of medical examination fee: At the 2nd level hospital. • Support 30% of medical examination fee: At the 1st or special level hospital.

- Non hospital residence treatment:• VND55,000 per whole treatment: At the 3rd level hospital or not listed hospital.• ND120,000 per whole treatment: At the 2nd level hospital.• VND340,000 per whole treatment: At the 1st or special level hospital. - Hospital residence treatment: • VND450,000 per whole treatment: For medical treatment at the 3rd level hospital or not listed hospital.• VND1,200,000 per whole treatment: For medical treatment at the 2nd level hospital.• VND3,600,000 per whole treatment: For medical treatment at the 1st or special level hospital.

GUIDELINES FOR USING HEALTH INSURANCE CARD

List of medical examination or treatment fee issued by MOH:http://www.bhxhtphcm.gov.vn/Page.aspx?PageId=346

List of hospitals which sign cooperate contract with SI: http://www.bhxhtphcm.gov.vn/Page.aspx?PageId=337

Medical examination or treatment at the specific hospital in the health insurance card The examination or treatment fee will be reduced directly.

For emergency case, can use HI card at any hospital. In case, cannot use the HI card for payment, employee can

take the qualified VAT invoice. HR dept. will support to get the refund from SI office

GUIDELINES FOR USING HEALTH INSURANCE CARD

Notes:

SI only support based on the list of medical examination

and treatment fee issued by MOH.

Percentage for supporting is based the type of hospital.

Please remember to bring ID card, passport or residence

card with health insurance card when having medical

examination or treatment at hospital

BENEFIT OF UNEMPLOYMENT INSURANCE

Unemployment insurance: To provide financial support for employee when being unemployed.

BENEFITS OF UNEMPLOYMENT INSURANCE

Conditions

Pay UI from enough 12 months aboveRegister the unemployment at the local vocational center Cannot find job after 15 days since the registration date

Benefits

Based on the time of UI attendance and UI monthly salary

UI allowance per month ~ 60% of average SI salary within the 6 latest months

3 month UI allowance: Attendance time from enough 12 months to under 36 months.

6 month UI allowance: Attendance time from enough 36 months to under 72 months.

9 month UI allowance: Attendance time from enough 72 months to under 144 months.

12 month UI allowance: Attendance time from enough 144 months above.

INSURANCE PAYMENT

Percentage of payment:

Paid by employee

Paid by company Total

Social insurance 6% 16% 22%

Health insurance 1.5% 3% 4.5%

Unemployment insurance 1% 1% 2%

Total 8.5% 20% 28.5%

INSURANCE SALARY

Insurance salary is based on the salary mentioned in the labor contract.

The maximum insurance salary is 20 times of minimum wage of salary.

Minimum wage of salary Maximum SI salary

Amount VND830,000 VND16,600,000