On October 08th, 2021, the Government issued Resolution No. 126/NQ-CP on amendments to the Resolution No. 68/NQ-CP on certain policies to support employees and employers in difficulty due to the Covid-19 pandemic, details are as follows:
Regarding policies on suspension of contributions to the retirement and survivorship fund
Regarding employers who have fully paid social insurance premiums or are temporarily suspending contributions to the retirement and survivorship fund until the end of January 2021 but have been affected by the COVID-19 pandemic, resulting in a downsizing of at least 10% of employees who have contributed to social insurance compared to January 2021, the employees and the employers are entitled to a 6-month suspension of payment to the retirement and survivorship fund from the date of application submission.
Thus, Resolution No. 126/NQ-CP has reduced the social insurance premiums level from 15% as prescribed in Resolution No. 68/NQ-CP to 10%.
Regarding policies on assistance to employees on suspension or termination of employment contracts, unpaid leave
Expanding the beneficiaries scope for employees who are working under labor contract instead of just applying for employees who are working for enterprises, cooperatives, public sector entities that cover their own recurrent expenditures or investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, junior high schools, high schools and vocational schools. If these employees get their contract terminated from May 1st, 2021, to the end of December 31st, 2021, and also they have been put under isolation, or the employers have to temporarily cease operations by orders of the competent authorities for the disease prevention and control or their headquarter resides on where the measures in Directive No. 16/CT-TTg are imposed but they are not eligible for unemployment benefits shall receive a lump-sum support of VND 3,710,000/person.
Regarding policies on assistance to household businesses
Besides the household businesses, the Resolution supplement more beneficiaries including: household businesses doing agriculture, forestry, fishery, salt production, hawkers, merchant traders, mobile vendors, seasonal traders, low-earners not required to apply for household business registration that have to suspend operations for at least 15 consecutive days by the orders of the competent authorities for COVID-19 prevention and control or having places of business in areas where the measures in Directive No. 16/CT- TTg are imposed from May 1st, 2021, to the end of December 31st, 2021, shall receive lump-sum support of VND 3,000,000/household business.
Reducing conditions for enterprises to lend money to pay furlough wages
This Resolution has removed the condition of the employer must have no bad debt at any credit institution and foreign bank branch at the time of applying for a loan to furlough wages, wages for production recovery.
Resolution No. 126/NQ-CP takes effect from October 8th, 2021.
