For more than 2 years since the end of 2019, Vietnam as well as many countries around the world has been suffering a lot of damage from the Covid-19 pandemic. That is why the Government of Vietnam issued Resolution 116/NQ-CP on policies to support employees and employers affected by the Covid-19 pandemic from the unemployment insurance fund on September 24th, 2021 to support workers and businesses during difficult times.
The policy content of Resolution 116/NQ-CP has two main points: Cash support for employees affected by the COVID-19 pandemic from the balance of the Unemployment Insurance Fund and a reduction in contributions to the Unemployment Insurance Fund for employers affected by the COVID-19 pandemic.
In which, the monetary support for employees affected by the COVID-19 pandemic from the balance of the Unemployment Insurance Fund is based on the period of unemployment insurance payment that has not yet been received by the employees.
Depending on the time of paying unemployment insurance but not yet receiving unemployment benefits of the employees, the employees will receive a support amount from 1.8 million to 3.3 million VND per person.
Reducing the contribution to the Unemployment Insurance Fund for employers affected by the COVID-19 pandemic
According to Resolution 116/NQ-CP, the employer is entitled to reduce the contribution rate from 1% to 0% of the monthly salary fund of employees who are subject to unemployment insurance. The time to reduce the payment is 12 months, from October 1, 2021 to the end of September 30, 2022.
The group of subjects entitled to a 1% reduction in unemployment insurance premiums are employers who are participating in unemployment insurance before October 1, 2021 according to the provisions of Article 43 of the Employment Law. State agencies, political organizations, socio-political organizations, people’s armed forces units and public non-business units whose recurrent expenditures are guaranteed by the state budget, establishing and paying unemployment insurance premiums after October 1, 2021 are not subject to the support of the Resolution.
Starting from October 1, 2022, the unemployment insurance payment support policy under Resolution 116 has expired. As of October 2022, employers will no longer be able to reduce their unemployment insurance premiums. The unemployment insurance premium will return to 1% of the monthly salary fund of employees who are subject to unemployment insurance.
Specifically, the compulsory social insurance premium rate from October 2022 onward until further adjustment for employees and employers is:
– The employer contributes 21.5% (including 14% to the retirement and survivorship fund; 3% to the sickness and maternity fund; 0.5% to the labor accident and occupational disease fund, 1% to the unemployment insurance fund and 3% into the health insurance fund).
– Employees contribute 10.5% (including 8% to the retirement and survivorship fund; 1% to the unemployment insurance fund and 1.5% to the health insurance fund).
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
***Other service of ASL LAW – full service Vietnam law firm *** |
|
|
|
||
Oversea investment consultancy for Vietnamese enterprises |
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|