Tiếng Việt
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Due to the raging Covid-19 pandemic, the life of many people in the society is being affected severely, both employees and employers. Accordingly, to help with the burden of the citizen’s economy, the Government of Vietnam has issued Resolution 116/NQ-CP on policies to support employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund.
Reducing the contribution to the Unemployment Insurance Fund
According to Resolution 116/NQ-CP on policies to support employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund, the employers affected by the COVID-19 pandemic will get a reduction of contribution to the Unemployment Insurance Fund.
Specifically, the subjects who will receive a reduction of contribution to the Unemployment Insurance Fund are the subjects listed in Article 43 of the Employment Law 2013 who are participating in unemployment insurance before October 1, 2021, excluding employees who are working in state agencies, political organizations, socio-political organizations, people’s armed forces units, and public nonbusiness units whose recurring expenditures are guaranteed by the state budget.
- Contribution reduction: The employer is entitled to reduce the contribution rate from 1% to 0% of the monthly salary fund of employees participating in unemployment insurance.
- Time to reduce the payment: 12 months, from October 1, 2021, to the end of September 30, 2022.
Financial support for employees affected by the COVID-19 pandemic from the Unemployment Insurance Fund balance
Employees who have stopped participating in unemployment insurance due to termination of their labor contracts or working contracts in the period from January 1, 2020, to the end of September 30, 2021, will have a period of unemployment insurance premium payment which is reserved in accordance with the employment law, excluding monthly pensioners.
The level of support will be calculated on the basis of the employee’s time of paying unemployment insurance premiums but not yet enjoying unemployment benefits, specifically as follows:
- Unemployment insurance premium payment period under 12 months: 1,800,000 VND/person.
- Unemployment insurance premium payment period from full 12 months to less than 60 months: 2,100,000 VND/person.
- Unemployment insurance premium payment period from full 60 months to less than 84 months: 2,400,000 VND/person.
- Unemployment insurance premium payment period from full 84 months to less than 108 months: 2,650,000 VND/person.
- Unemployment insurance premium payment period from full 108 months to less than 132 months: 2,900,000 VND/person.
- Unemployment insurance premium payment period for 132 months or more: 3,300,000 VND/person.
Supporting source: about VND 30,000 billion from the Unemployment Insurance Fund balance until the end of 2020.
The implementation time to support employees is from October 1, 2021, and will be completed by December 31, 2021, at the latest.
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