In the draft Decree stipulating the compulsory social insurance contribution level to the Work Accident and Occupational Disease Insurance Fund (Insurance Fund), the Ministry of Home Affairs proposes to amend regulations on contribution levels to the Insurance Fund in the direction of reducing the fixed-term contribution level.
Accordingly, employers monthly pay 0.3% on the salary fund as the basis for social insurance contributions from the effective date of the Decree until the end of December 31, 2027; from January 1, 2028, the 0.5% contribution rate is applied.
Contributing opinions to the draft decree, a business said that the simultaneous application of a 0.5% contribution level to the Insurance Fund from 2028 is considered unreasonable, due to the different levels of occupational accident and disease risks between industries and work groups.
The company proposes to stratify contribution levels by type of labor or risk level.
Option 1, in case enterprises perform labor classification, apply a contribution rate of 0.3% for type 1, 2, 3 workers; level 0.7% for type 4 workers; level 1% for type 5, 6 workers.
Option 2, in case enterprises do not classify labor, apply a rate of 0.3% for low-risk groups, a rate of 0.7% for medium-risk groups and a rate of 1% for high-risk groups.
The low-risk group is enterprises that do not belong to 11 high-risk industries and do not have workers doing heavy, hazardous, and dangerous jobs;
The average risk group is businesses that do not belong to 11 high-risk industries and have from 30% to 50% of workers working in types 4, 5, 6;
High-risk groups are enterprises in 11 high-risk industries or with 50% or more of employees working in occupations or jobs of type 4, 5, 6.
The company's proposal is built on the basis of referring to the experience of Japan, Taiwan (China) and Thailand in applying different contribution levels by industry, occupation and risk level; and based on the large surplus of the social insurance system, the number of occupational accidents and the number of beneficiaries.
Responding to the above proposal, the Ministry of Home Affairs proposed to keep it as in the draft.
The Ministry believes that there is currently not enough scientific and practical basis to determine the clear link between the classification of working conditions, high-risk occupations and the proportion of workers doing heavy, hazardous, and dangerous jobs with contribution levels of 0.3%, 0.7% and 1%.
At the same time, the 30% and 50% ratio thresholds as well as the corresponding contribution levels have not been fully explained, assessed for impact, or verified based on actual data.
In addition, the application of these criteria may cause difficulties in implementation for businesses operating in multiple industries or using many different groups of workers.
Therefore, the Ministry of Home Affairs believes that the draft maintains the plan to apply a uniform contribution level. The study of classifying contribution levels by risk level will continue to be considered when there is a complete database and appropriate implementation conditions.
