Question:
I am 56 years old. I started working at Company X in September 1995 and, in 2003, I transferred to Chemical Enterprise Y, where my work regularly involved exposure to chemicals. In June 2021, during a break in my work shift, I tested a newly imported chemical production device and suffered an accident, resulting in hospitalization for 30 days. Subsequently, the medical authority determined that I had suffered a 65% reduction in working capacity. May I ask: In my case, is this considered a labor accident? And if, after being discharged from the hospital, I submit an application for retirement, how will my pension regime be resolved?
Answer:
According to Clause 8, Article 3 of the Law on Occupational Safety and Hygiene 2015:
“A labor accident means an accident that causes injury to any part or function of the body or causes death to an employee, occurring during the labor process and in connection with the performance of work or labor duties.”
In your case, the accident occurred at the workplace, during working hours, while you were operating equipment serving production activities. You have suffered a 65% reduction in working capacity and your case does not fall under the exclusion grounds set out in Clause 1, Article 40 of the Law on Occupational Safety and Hygiene 2015. Therefore, this accident is recognized as a labor accident, and you are eligible to enjoy labor accident benefits under Article 45 of the Law on Occupational Safety and Hygiene 2015.
Regarding the retirement regime, you have participated in compulsory social insurance from 1995 to 2021, with a total contribution period of 25 years and 9 months (rounded to 26 years). At the time of retirement, you are 56 years old. Pursuant to Point c, Clause 1, Article 55 of the Law on Social Insurance 2014, an employee with at least 20 years of social insurance contributions and a reduction in working capacity of 61% or more is entitled to retire upon reaching the age of 55 (for male employees). Furthermore, as you have more than 15 years of employment in hazardous or dangerous conditions (exposure to chemicals), you fully qualify to receive an early retirement pension.
As to the pension rate, under Article 56 of the Law on Social Insurance 2014 and Circular No. 59/2015/TT-BLDTBXH:
- For the first 19 years of contributions, you are entitled to 45%;
- For the following 7 years, each year adds 2%, totaling 14%;
⇒ Before deduction: 59%.
- Since you are retiring 4 years and 3 months earlier than the statutory retirement age under Decree No. 135/2020/ND-CP (60 years and 3 months), your pension rate is reduced by 9%.
⇒ Monthly pension rate = 59% – 9% = 50% of the average monthly wage on which social insurance contributions were based.
Accordingly, your case is both recognized as a labor accident and qualifies for early retirement, with a monthly pension equal to 50% of the average salary used as the basis for social insurance contributions.
Consultation: Labor Law Services.
