Support policies for Employees and Employers affected by the Covid-19 pandemic from the Unemployment Insurance Fund

LexNovum Lawyers

01/12/2021

Support policies for Employees and Employers affected by the Covid-19 pandemic from the Unemployment Insurance Fund

On September 24, 2021, The Government issued the Resolution No. 116/NQ-CP on support policies for Employees and Employers affected by the Covid-19 pandemic from the Unemployment Insurance Fund, including following contents:

1. Financial support for Employees affected by the COVID-19 pandemic from the Unemployment Insurance (“UI”) Fund balance

Subjects of application:

– Employees listed as those participating in UI till September 30, 2021;

(Except those working for state agencies, political organizations, socio-political organizations, people’s armed forces and public service delivery units whose recurrent expenditures are financed by the state budget).

– Employees who have stopped participate in UI because the employment contracts have already been terminated within the period from January 1, 2020 to end of September 30, 2021, and whose UI contribution periods are reserved (except monthly pensioners).

Financial aid level:

Based on the UI contribution period during which unemployment benefits are not received, specified as follows:

– Period of UI contribution less than 12 months: 1,800,000 VND/person.

– Period of UI contribution from full 12 months to less than 60 months: 2,100,000 VND/person.

– Period of UI contribution from full 60 months to less than 84 months: 2,400,000 VND/person.

– Period of UI contribution from full 84 months to less than 108 months: 2,650,000 VND/person.

– Period of UI contribution from full 108 months to less than 132 months: 2,900,000 VND/person.

– Period of UI contribution from full 132 months or more: 3,300,000 VND/person.

Time of application:

From October 1, 2021 and completed by December 31, 2021 at the latest.

2. Reduced contribution to the UI Fund for Employers affected by the COVID-19 pandemic

Subjects of application:

Employers mentioned in Article 43 of the Employment Law (except state agencies, political organizations, socio-political organizations, people’s armed forces and public non-business units whose recurrent expenditures are financed by the state budget) are participating in UI before October 1, 2021.

Reduction Level:

The Employer is entitled to the contribution reduction rate from 1% to 0% of the monthly salary fund of Employees who are subject to UI.

Application period:

12 months, from October 1, 2021 to the end of September 30, 2022.

For more details, please refer to the Resolution No. 116/NQ-CP dated September 24, 2021.

Executor: Nhi Phan – LexNovum Lawyers