On July 01st, 2021, the Government issued Resolution No. 68/NQ-CP on the implementation of some policies to support employees and employers in difficulty due to the Covid-19 pandemic as follows:
- Supporting policies for the Employees
- Assistance to employees on suspension of employment contracts, unpaid leave: Employees will be entitled to a lump-sum support if they have worked 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 that temporarily cease operations at the request of competent authorities for the prevention and control of the COVID-19 pandemic and their period of suspension of employment contracts or unpaid leave is from 15 consecutive days or more from May 1st, 2021 to the end of December 31st, 2021, with a start date between May 1st, 2021 and December 31st, 2021; and they have contributed to compulsory social insurance up to the time of suspension of employment contracts or unpaid leave as follows: The rate is VND 1,855,000 per person for 15 consecutive days or more but less than 1 month, and VND 3,710,000 per person for 1 month or more;
- Assistance to furloughed employees: Employees will be entitled to a lump-sum support of VND 1,000,000 per person if they have worked under an employment contract and has been put on furlough under Clause 3, Article 99 of the Labor Code and have been quarantined or in a locked down area as required by the competent authority for 14 days or more during the period from May 1st, 2021 to the end of December 31st, 2021; and they have contributed to compulsory social insurance up to the time of furlough;
- Assistance to employees with terminated employment contracts: Employees will be entitled to a lump-sum support of VND 3,710,000 per person if they have worked 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 that temporarily cease operations at the request of competent authorities for the prevention and control of the COVID-19 pandemic and their employment contracts have been terminated from May 1st, 2021 to the end of December 31st, 2021, with a start date between May 1st, 2021 and December 31st, 2021; and they have contributed to compulsory social insurance but are not eligible for unemployment benefits.
- Supporting policies for the Employers
- Reduction in insurance premiums for occupational accidents and diseases: Employers are entitled to a premium rate of 0% of the salary fund as the basis for paying social insurance premiums to the Insurance Fund for Occupational Accidents and Diseases for 12 months (from July 1stto June 30th, 2022) for employees eligible for occupational accident and disease insurance (except for officials, public employees, people in the people’s armed forces, employees in the agencies of the Party, the State, administrative agencies, public sector entities on the payroll of the state budget). The employer will provide the monetary support obtained from the reduction in premiums to the Insurance fund for occupational accidents and diseases for the employees in order to combat the COVID-19 pandemic.
- 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 April 2021 but have been affected by the COVID-19 pandemic, resulting in a downsizing of at least 15% employees who have contributed to social insurance compared to April 2021 (including the employees on furlough, suspension of employment contracts, and unpaid leave), 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.
As for a case on the payment suspension under Resolution No. 42/NQ-CP of April 9th, 2020 and Resolution No. 154/NQ-CP of October 19th, 2020 of the Government, if the applicant is still qualified, the application will be approved as long as the suspension period does not exceed 12 months.
Moreover, Employers are entitled to financial support from the unemployment insurance fund for training, retraining, and skill enhancement if they have fully paid unemployment insurance premiums for employees for full 12 months or more at the time of requesting support; and entitled to borrow a loan from the Bank for Social Policies at the interest rate of 0% without requiring to furnish loan security to pay furlough wages to the employees, wages for production recovery when meeting the requirement as regulated in this Resolution; the loan term is less than 12 months.
