Vietnam Issues Resolutions Supporting Employees, Employers Affected by Pandemic
- Vietnam issued Resolution 116 and Resolution 3 on supporting employers and employees affected by the pandemic.
- The resolution makes use of the unemployment insurance fund on releasing allowances for those affected.
- Employees and employees should study the resolution carefully to take advantage of the allowances granted by the UI fund.
Following Resolution 105 and Resolution 68 to support businesses, employees, and employers affected by the pandemic, the government issued Resolution 116 NQ-CP (Resolution 116) and Resolution 3/2021/UBTVQH15 (Resolution 3) on supporting employers and employees affected by COVID-19. The assistance will be sought through the unemployment insurance (UI) fund. Resolution 116 came into effect on September 24, 2021.
Support for employees paying UI contribution
As per the Resolution, employees will be eligible for support under the following conditions:
- Employees that have participated in UI until September 30, 2021 (apart from those in state/government agencies); and
- Employees whose employment contracts were terminated between January 1, 2021, until September 30, 2021, and whose UI contributions are reserved.
The one-time allowance depends on the UI contribution as shared below:
The support is expected to start from October 1, 2021, until December 31, 2021.
Support for employers
Employers participating in UI prior to October 1, 2021, are also eligible for benefits. Eligible employers are entitled to a reduction to 0 percent from 1 percent of the monthly salary fund of employees that is subject to UI. The support period applies for one year from October 1, 2021, to September 30, 2022.
Implementation and deadlines
The government has also issued Decision 28 guiding the implementation of the aforementioned resolutions. Social insurance authorities are expected to release cash support in 10 days once they received verified lists from employees and employers. The deadline for this is November 10. In addition, for employees directly contacting social insurance authorities, the deadline is December 20, 2021. Under current regulations, foreign employees working for Vietnamese businesses are not eligible to receive support as they do not participate in UI.
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