Resolution No. 42/NQ-CP 2020 measures to support people affected by COVID-19

RESOLUTION

On measures to support people affected by the COVID-19 epidemic

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THE GOVERNMENT

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

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

Pursuant to the conclusion of the April 08, 2020 meeting of the National Assembly Standing Committee in the Notice No. 3546/TB-TTKQH dated April 09, 2020 of the General Secretary of the National Assembly;

Based on the Government s opinion at the Government s regular meeting in March 2020 and the proposal of the Minister of Planning and Investment in Report No. 2344/TTr-BKHDT dated April 9, 2020,

RESOLVES:

The COVID-19 epidemic s development continues to be complicated, unpredictable and widespread in many countries and regions around the world, greatly affecting the global economy and other countries and major partners of our country. In Vietnam, the COVID-19 epidemic has been affecting to many aspects of the economy and society; causing difficulty for people s life; many enterprises, households and cooperatives have to halt their operation, downsizing their production scale or produce in moderation, thus increasing unemployment, losing jobs in the short term and such situation may be more complicated if the epidemic is prolonged.

In order to support and ensure the lives of the people and laborers throughout the country and contribute to social stability, the Government decides to implement a number of measures to support people affected by the COVID-19 epidemic as follows:

I. PRINCIPLES

1. To provide support for those who have income reduction, loss or underemployment, those who in need or do not ensure the minimum living standards, and those affected by the COVID-19 epidemic; to provide additional support for a number of target groups enjoying preferential and social protection policies during the epidemic outbreak period.

2. The State, enterprises and social community shall share responsibility for ensuring the workers’ life.

3. To ensure to support the right subjects; the support must be public, transparent; not to let anyone take advantage of the policy. Anyone eligible for 02 or more policies in this Resolution is only entitled to the highest support; do not support for volunteers not participating in the policy.

4. To give priority to use the State budget to implement the policies in this Resolution.

a) Provinces and cities where the central revenue sharing percentage is more than 50% shall cover the budget for the implementation. The State budget shall support the remaining localities under the principles as follows:

- 70% of the actual spending as prescribed in this Resolution for Central Highlands and mountainous provinces.

- 50% of the actual spending as prescribed in this Resolution for the remaining provinces that have not yet balanced the budget (other than Central Highlands and mountainous provinces).

- 30% of the actual spending as prescribed in this Resolution for provinces and cities where the central revenue sharing percentage is less than 50%.

b) People s Committees of provinces and centrally-run cities shall actively use 50% of the local budget reserve funding (including provincial, district and commune levels) and 70% of the local financial reserve fund, the remaining salary reform funding to comply with the supporting principles and regimes as prescribed in this Resolution.

II.SUPPORT CONTENTS

1. An employee who takes unpaid leave or has his/her labor contracts suspended for one month or longer due to their enterprises affected by the COVID-19 epidemic, having no revenue or financial source to pay the salary shall be supported VND 1,800,000/month. The support duration shall depend on the actual time of suspension of a labor contract, unpaid leave or monthly according to the evolution of the epidemic, but not exceed 03 months, starting from April 01, 2020.

2. An employer who is in financial difficulties and has paid at least 50% of the salary for employees under Clause 3, Article 98 of the Labor Code from April 2020 to June 2020 shall be entitled to loans without collaterals up to 50% of the regional minimum salary for each employee based on actual pay period but not more than 03 months with 0% interest rate and a maximum loan term of 12 months at the Viet Nam Bank for Social Policies to pay an additional half a month s salary to these employees and direct disbursement monthly to the unemployed.

3. An individual business household that has taxable revenue of less than VND100 million a year and has temporarily suspended business operation from April 01, 2020 shall be supported with VND 1,000,000 per month for a maximum of 03 months, depending on the evolution of the epidemic.

4. An employee who has his/her labor contract terminated, has a labor contract but is not eligible for unemployment benefit, or becomes unemployed due to the lack of contract signing shall be entitled to VND 1,000,000 a month, for a maximum of 03 months, depending on the evolution of the epidemic. The support duration starts from April 2020 to June 2020.

5. A revolutionary contributor enjoying monthly allowance shall be entitled to VND 500,000 per month.  The support duration is 03 months, from April 2020 to June 2020 and such allowance is paid once.

6. The beneficiary of social assistance enjoying monthly allowance shall be entitled to VND 500,000/person/month.  The support duration is 03 months, from April 2020 to June 2020 and such allowance is paid once.

7. For the poor and near-poor households according to the national poverty line on the list until December 31, 2019, each shall subject to VND 250,000 per month. The support duration is 03 months, from April 2020 to June 2020 and such allowance is paid once.

III. OTHER POLICIES

1. In case employers have to reduce 50% employees participating in social insurance or more in comparison to the time of epidemic announced by the competent agency due to the COVID-19 epidemic (including employees stop working, suspend their labor contracts or unpaid leave agreements), employers and employees may temporarily suspend their contribution to the retirement and dead fund for a maximum of 12 months.

2. Employees shall be entitled to send an application for enjoying unemployment benefits by post, notice their monthly employment in the indirect forms such as send by e-mail, fax, post office, etc. without certification of the People s Committees of commune-level about the epidemic outbreak from April 01, 2020 until the date of epidemic termination announcement.

IV. IMPLEMENTATION ORGANIZATION

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

a) To preside and coordinate with Ministries and relevant agencies to provide guidance for localities, social insurance agencies to support in accordance with Points 1, 3, 4, 5, 6 and 7, Section II and Point 1, Section III of this Resolution, ensuring timely, public, transparent and the support principles as prescribed in Section I of this Resolution.

b) To preside and coordinate with the Ministry of Finance, State Bank of Vietnam, Vietnam Bank for Social Policies and relevant agencies to formulate a Prime Minister’s draft decision on lending to employers to pay job-stopping wages by the Vietnam Bank for Social Policies under Point 2, Section II of this Resolution and report to the Prime Minister in April 2020.

c) To preside and coordinate with relevant agencies to provide guidance for localities and social insurance agencies to temporarily suspend the contribution to the retirement and dead fund in accordance with Point 1, Section III of this Resolution.

d) To summarize, report the implementation and its results at monthly Government s regular meetings; promptly propose the Prime Minister solutions to remove difficulties and problems arising in the course of implementation.

2. The Ministry of Finance shall:

a) To coordinate with the Ministry of Labor, War Invalid and Social Affairs, Ministry of Planning and Investment, State Bank of Vietnam in the implementation of policies and regimes as prescribed in Points 2 and 3, Section II of this Resolution.

b) To ensure the central budget to implement policies specified in this Resolution.

c) To base on this Resolution, relevant law regulations and the actual sending of localities (with the State Treasury s certification) to consider and support for each locality, periodically summarize and report the implementation results to the Prime Minister.

3. The State Bank of Vietnam shall:

a) To preside and coordinate with the Ministry of Labor, War Invalids and Social, Ministry of Finance, Ministry of Planning and Investment, Vietnam Social Security and relevant agencies to guide and permit the Vietnam Bank for Social Policies to provide refinancing loans of around VND 16,000 billion with 0% interest rate so that the employers can pay wages to employees according to Point 2, Section II of this Resolution.

b) To be entitled to use the risk reserve set up from the State Bank of Vietnam’s revenue and expenditure difference to settle refinancing debts in this Resolution arising overdue of 03 years or more.

4. The Vietnam Social Security shall preside, determine and approve the List of subjects entitled to policies specified in Point 1, Section III of this Resolution and coordinate with relevant agencies to timely, publicly and transparently implement, ensure to support the right subjects, not to let anyone take advantage of the policy.

5. People’s Committees of provinces and centrally-run cities shall:

a) To actively use the local forces as prescribed in Section I of this Resolution and report the implementation results to the Ministry of Finance for summarizing and submitting the competent authorities for support.

b) To preside, determine and approve the List of subjects entitled to policies specified in Point 1, Section III of this Resolution and coordinate with relevant agencies to timely, publicly and transparently implement, ensure to support the right subjects, not to let anyone take advantage of the policy.

c) To base on this Resolution and take responsibility for implementation, arrange persons to support subjects as prescribed in Point 4 of Section II.

6. The Ministry of Information and Communications shall preside and coordinate with the Central propaganda and training commission, news agencies, the press, ministries, central agencies and localities in popularizing and widely propagating this Resolution.

7. Ministries, central agencies and localities shall focus on thoroughly and urgently having specific programs, plans and directing agencies, units, cadres, civil servants, public employees and employees under the management to immediately implement the tasks stated in this Resolution; to guide, propagate and mobilize the business community and people on mechanisms, policies and solutions to support those affected by the COVID-19 epidemic; proactively coordinate with relevant ministries and agencies to handle arising problems, report monthly on the implementation, propose solutions and send them to the Ministry of Labor, War Invalids and Social Affairs before the 20th every month to summarize and report to the Government and the Prime Minister at regular meetings.

8. Minister, Heads of ministerial-level agencies, government-attached agencies, Chairpersons of People’s Committees of provinces and centrally-run cities, Chairpersons of the Board of members, General Directors of state-owned corporations shall be directly responsible to the Government and the Prime Minister for the implementation and results of this Resolution./

For the Government

The Prime Minister

Nguyen Xuan Phuc