Chapter XII: SOCIAL INSURANCE

Article 140.

The State shall enact policies on social insurance aimed at gradually expanding and raising the material well - being of the labourer and his family thus contributing to the stabilization of their life in case of his sickness, pregnancy of the woman labourer, at the end of his or her labouring age, his or her death or meeting a labour accident or contracting an occupational disease, losing his or her job or meeting with other misfortunes and difficulties.

Various forms of obligatory or voluntary social insurances shall be applied to each type of labourer and business aimed at assuring that the labourers have access appropriate forms of social insurance.

Article 141.

1- Obligatory forms of social insurance apply to the businesses employing more than 10 labourers. At these businesses, the labour user as well as 4'he

labourer must pay their social insurance premiums as defined at Article 148 of this Code and the labourer is beneficiary of social insurance allowances in case of sickness, labour accident, occupational disease, pregnancy, retirement and death.

2- With regard to the labourer working in a place employing less than 10 labourers or doing jobs lasting less than three months, jobs of a seasonal or temporary character, his social insurance allowances shall be included in his salary 151paid by the labour user so that he can join a social insurance

scheme of his choice or look after his own insurance.

Article 142

1- In case of sickness the labourer is entitled to medical examination and treatment at the medical establishments according to the system of medical insurance.

2- The labourer who falls sick and is allowed by the doctor to have treatment at home or at the hospital shall receive a sickness allowance paid by the social insurance fund.

The level of this sickness allowance depends on the type of his work and the level and time he has paid for his social insurance premiums. This level shall be set by the Government.

Article 143.

1- During the labourer's treatment following a labour accident or as a result of an occupational disease, the labour user must pay the full salary and medical expenses of the labourer as provided for in item 2 of Article l07 of this Code. '

After treatment, depending on the level of his disability as a result of the labour accident or the occupational disease, the labourer shall be examined by the medical assessment board which will classify the degree of his disability for the allocation of his disability allowance either once for all or monthly, to be paid by the social insurance fund.

2- While working if the labourer dies of a labour accident of occupational disease his closer relatives shall receive as death indemnity defined in Article 146 of this Code plus an allowance from the social insurance amounting to 24 minimum monthly wages as prescribed by the Government.

Article 144.

1- During her childbirth leave defined at Article l14 of this Code if the woman labourer has paid her social insurance premium she shall receive a social Insurance benefit equal to 100% of her salary plus an allowance equal to one month salary if she gives birth to her first or second child.

2- The other regimes concerning women labourers shall apply as defined at Article l17 of this Code.

Article 145.

1 The labourer shall benefit from a monthly pension if he/she meets the following conditions on age and social insurance premium :

a/ 60 years of age for men, 55 years for women. The pensionable age of the workers in heavy or noxious jobs or work in the highlands, border regions, offshore islands and some special cases shall be defined by the. Government.

b/ Having paid his/her : socišl insurance premium for at least 20 years.

2- The labourer who does not meet all the conditions stated above shall also receive a monthly pension at a lower rate if he fills one of the following conditions :

a/ He has reached the age stipulated at Point a, item 1 of this Article and has paid his social insurance premium for at least 15 years.

b/ The labourer has paid his/her social insurance for at least 20 years and is at least 50 years old for a man and 45 years old for a woman and who has lost at least 61% of his/her working capacity.

c/ The labourer doing especially' heavy or noxious jobs as prescribed by the Government, has paid his/her social insurance premiums for at least 20 years and has lost at least 61% of his/her working capacity.

3 The labourer who cannot gather conditions to benefit from the monthly pension as defined in Item l and Item 2 of this Article, shall receive a package allowance.

4- The level of monthly pension and package allowance defined in item l, item 2 and item 3 of this Article depends on the level of the premium and the number of years it is paid to be prescribed by the Government.

Article 146.

l- When a working labourer, a pensioner, a beneficiary of monthly allowances for labour incapacitation, labour accident or occupational disease dies, the person in charge of his funeral shall receive a funeral allowance to be prescribed by the Government.

2- A monthly allowance shall be granted to the close relative of a labourer who dies of a labour accident or occupational disease or who dies after having paid his social insurance premium fore more than 15 years or who dies while benefiting from a monthly pension or monthly allowance for labour accident or occupational disease or who has children under 15 years of age or whose wife (or husband) or parents are past the working age whom he directly catered for while he was still living. If the dead has no relatives eligible for ¸ monthly allowance or has not paid his social insurance premium for 15 years, his family shall receive a package allowance but this must not exceed 12 months of his salary or the allowance he is receiving.

3- The beneficiary of the pension system, of the allowance for labour incapacitation or the allowance for labour accidents degrees l and 2 or occupational diseases degrees and 2 prior to the promulgation of this Code shall benefit from the death allowance regime stipulated in this Article.

Article 147.

1- The working time of a labourer working in a State-owned business before this Code takes effect shall be regarded as already covered by the social insurance premium if he has not received the work severance allowance or the package allowance paid by the social insurance fund.

2- The social insurance benefits of the pensioners, the beneficiaries of monthly allowances for labour incapacitation, labour accident occupational di8ease and death allowance in the period prior to the taking effect of this Code shall be assured by the State budget and shall be readjusted to fit in with the social insurance policy in force.

Article 148.

The businesses engaged in agriculture, forestry, fisheries and salt production have the responsibility take part in different forms of social insurance suitable for the characteristics of their production and use of labour in each branch according to the Statute on Social Insurance.

Article 149.

1- The social insurance fund is formed by the following sources :

a) Contribution by the labour user representing 15% of the total wage funŽ b) Contribution by the labourer representing 5% of his wage;

c) Contribution and allowance by the State ensure the implementation of the social insurance policy toward the labourer;

d) Other sources.

2- The social insurance fund is placed under unified management according to the financial regime of the State and the system of independent accounting and is protected by the State. It is authorized take measures to preserve its value and increase its growth according to prescriptions of the Government.

Article 150.

The Government shall issue the Statute on social insurance, set up the system of social insurance and promulgate the Rules on the organization and operation of the Social Insurance Fund with the participation of the Vietnam General Federation of labour.

Article 151.

l- The labourer taking part in the social insurance scheme shall receive social insurance benefits fully, conveniently and. on time.

2- When dispute arises between the labourer and the labour user concerning social insurance, the dispute shall be settled according to the prescriptions at Chapter XIV of this Code. If a dispute involves the social insurance agency it shall be settled according to the Rules on the organization and operation of the Social insurance Fund.

Article 152.

The State encourages the labourers, trade unions, the labour users and other social organizations to set up social mutual assistance funds.


National Institute of Labour Protection of Vietnam-CIS/ILO Collaborating Center

Address: No 1. Yet Kieu Tel:8.250129 - 8.222949 Fax:(84.4) 8.246752  Email: NILP@Netnam.org.vn; VIBHLD@Netnam.vn