Contributing opinions to the draft Decree stipulating the compulsory social insurance contribution level to the Work Accident and Occupational Disease Insurance Fund (Insurance Fund), the Department of Salary and Social Insurance (Ministry of Home Affairs) and the Department of Home Affairs of Nghe An province said that Decree No. 58/2020/ND-CP stipulates a contribution level lower than the normal contribution level for businesses that meet the conditions to encourage businesses to improve the effectiveness of preventing work accidents and occupational diseases (TNLĐ, BNN), improve working conditions and pay more attention to occupational safety and hygiene.
According to the summary report, so far, most cases of enterprises being applied with contributions lower than 0.3% have not arisen; the main reason is that the application conditions are still strict, the evaluation criteria are complicated, costs and procedures arise, while the incentive level is not large enough to create motivation to participate.
The two units above proposed to study a plan to amend the conditions, criteria and preferential levels to overcome the above limitations and inadequacies if the goal of a lower contribution level mechanism is still appropriate; and at the same time refer to the experience of applying contribution levels by industry, profession or flexible contribution levels, according to risks.
Responding to the above content, the Ministry of Home Affairs partially accepted it in the direction of researching the orientation.
Through international experience research, occupational accident and occupational accident insurance contribution policies can be generalized into two main models: Applying a uniform contribution level for participating subjects; or applying different contribution levels depending on industry, occupation, risk level and occupational accident and occupational accident situation.
Applying the contribution level according to the level of risk has the advantage of more closely reflecting the risk of OAs and OAs arising and creating motivation for employers to strengthen prevention.
However, to implement this model, it is necessary to have a system of criteria for classifying industries, occupations and clear risk levels; a complete, unified and reliable database on the number of workers, wages, the situation of labor accidents, occupational accidents, revenue, expenditure and benefit history; and at the same time, it is necessary to develop appropriate methods of calculation, fee setting, update and inspection and supervision mechanisms.
In the current context that the database does not fully meet the above requirements, immediately stipulating different contribution levels by industry, occupation or risk level may lead to difficulties in classification, lack of consistency when applying, arising procedures and compliance costs, and not overcoming the limitations of the mechanism of lower contribution levels according to Decree No. 58/2020/ND-CP.
Therefore, the draft Decree chooses to apply a uniform contribution level according to each period, initially a level of 0.3% within a limited time and a level of 0.5% from January 1, 2028; and at the same time abolishes the conditions, dossiers, order, and procedures for considering a lower contribution level.
This plan ensures simplicity, transparency, ease of implementation and timely support for businesses. The drafting agency acknowledges the proposal to apply contribution levels by industry, occupation or risk level to continue research according to the roadmap.
In the immediate future, it is necessary to complete the database, risk classification criteria and fee setting methods; on that basis, assess the impact, study international experience and propose appropriate contribution level models when conditions are sufficient for implementation.
