Resolution 116/NQ-CP 2021 support policy for employees, employers affected by COVID-19 from the Unemployment Insurance Fund

RESOLUTION

On support policy for employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Resolution No. 30/2021/QH15, on the first session of the 15^th National Assembly;

Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016, promulgating the working regulation of the Government;

Pursuant to opinions of the Political Bureau in the Document No. 1789/CV-VPTW dated September 11, 2021, and the Document No. 1911/CV-VPTW dated September 23, 2021, of the Officer of the Party Central Committee;

Pursuant to the Resolution No. 03/2021/UBTVQH15 dated September 24, 2021, of the National Assembly Standing Committee, on promulgating support policy for employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund;

At the proposal of the Minister of Labor, Invalids and Social Affairs in the Report No. 76/TTr -LDTBXH dated September 24, 2021.

RESOLVES:

In the context that the pandemic remains complicated, greatly affecting many aspects of social life, the employment, life, employees’ income and employers’ production and business activities, the Government decides to implement the policy to support employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund as follows:

I. OBJECTIVES AND PRINCIPLES

1. Objectives

- To show the Party and State’s concern and sharing for employees and employers affected by the COVID-19 pandemic.

- To contribute to support employees to overcome difficulties, stabilize their life, prevent disruption of the labor supply chain and labor shortage.

- To support employers to reduce expenses, make efforts to adapt to the new normal, maintain production and business activities, create jobs for employees.

- To promote the role of unemployment insurance policy as the prop for employees and employers.

2. Principles

- The support from the Unemployment Insurance Fund provided for employees and employers must ensure the principle of payment - enjoyment, sharing and fairness for employees and employers participating in unemployment insurance.

- The implementation of the policy must be based on the overall balance of the resources of the State, other funds, and support sources, taking into account the differences and prioritizing a number of subjects affected by the COVID-19 pandemic.

- The provision of support for employees and employers must be conducted in a simple, timely, transparent, public and effective manner, ensure that the support shall be provided for the right beneficiaries.

- This support shall not be applied to those who refuse to receive support.

II. POLICY CONTENTS

1. Support in cash for employees affected by the COVID-19 pandemic from the Unemployment Insurance Fund’s surplus balance

a) Subjects of application

- Employees who are paying unemployment insurance premiums as of September 30, 2021 (excluding employees currently working at state agencies, political organizations, socio-political organizations, people’s armed forces units and public non-business units whose frequent expenditures are covered by the state budget).

- Employees who have stopped paying unemployment insurance premiums due to the termination of labor contracts or working contracts in the period from January 01, 2020, to the end of September 30, 2021, with the unemployment insurance premium payment period reserved in accordance with the law on employment, excluding persons who are enjoying to monthly pensions.

b) Support amounts

The supporting amount shall be based on the unemployment insurance premium payment period during which the employee has not yet received any unemployment allowance. To be specific:

- If the unemployment insurance premium payment period is less than 12 months, the employee shall be entitled to a support of VND 1,800,000/person.

- If the unemployment insurance premium payment period is between full 12 months and less than 60 months, the employee shall be entitled to a support of VND 2,100,000/person.

- If the unemployment insurance premium payment period is between full 60 months and less than 84 months, the employee shall be entitled to a support of VND 2,400,000/person.

- If the unemployment insurance premium payment period is between full 84 months and less than 108 months, the employee shall be entitled to a support of VND 2,650,000/person.

- If the unemployment insurance premium payment period is between full 108 months and less than 132 months, the employee shall be entitled to a support of VND 2,900,000/person.

- If the unemployment insurance premium payment period is 132 months or more, the employee shall be entitled to a support of VND 3,300,000/person.

c) Financial resource: About VND 30,000 billion from the Unemployment Insurance Fund’s surplus balance until the end of 2020.

d) This support policy shall be implemented from October 01, 2021 and completed by December 31, 2021.

2. Reduction of the contribution into the Unemployment Insurance Fund for employers affected by the COVID-19 pandemic

a) Subjects of application

Employers specified in Article 43 of the Law on Employment (excluding state agencies, political organizations, socio-political organizations, people’s armed forces units and public non-business units whose frequent expenditures are covered by the state budget) that have been paying in unemployment insurance premiums before October 01, 2021.

b) Reduction rate

Employers are allowed to reduce the contribution rate from 1% to 0% of the monthly wage fund of the employees obliged to participate in unemployment insurance.

c) Reduction period

12 months, starting from October 01, 2021, to the end of September 30, 2022.

III. IMPLEMENTATION ORGANIZATION

1. The Ministry of Labor, Invalids and Social Affairs shall:

a) Assume the prime responsibility for, and coordinate with concerned agencies in, submitting to the Prime Minister for promulgation a Decision to implement the contents prescribed in Section II of this Resolution according to the simplified order and procedures.

b) Direct, guide, inspect and urge the Vietnam Social Security and localities to implement the Government's Resolution and the Prime Minister’s Decision. Propose the Government and the Prime Minister solutions to remove arising difficulties and problems.

2. The Ministry of Finance shall submit the Prime Minister for consideration and adjustment of the revenue and expenditure estimates and costs for management of the Unemployment Insurance Fund according to regulations.

3. The Vietnam Social Security shall:

a) Coordinate with the Ministry of Labor, Invalids and Social Affairs in formulating and submitting to the Prime Minister for promulgation of the Decision to implement this Resolution.

b) Organize to implement policies under this Resolution.

c) Promptly report difficulties and problems to the Ministry of Labor, Invalids and Social Affairs for submission to the competent authorities for consideration and settlement.

4. The Ministry of Information and Communications shall assume the prime responsibility for, and coordinate with the Central Propaganda and Training Commission, ministries, central and local agencies, news and press agencies in popularizing this Resolution.

5. The Vietnam Fatherlands Front Central Committee, the Vietnam General Confederation of Labor and employers’ representative organizations, socio-political organizations are requested to participate in the dissemination, mobilization, and supervision of the implementation of this Resolution.

6. Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of People's Committees of provinces and centrally run cities shall take direct accountability to the Government and the Prime Minister for the implementation of this Resolution and the results thereof./.

On behalf of The Government

For the Prime Minister

The Deputy Minister

Le Minh Khai