Resolution No. 68/NQ-CP 2021 policies to support COVID-19-hit employees and employers

RESOLUTION

On policies to support COVID-19-hit employees and employers

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THE GOVERMENT

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law dated November 22, 2019, amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the Government's Decree No. 138/2016/ND-CP dated October 1, 2016, on the promulgation of the Government's working regulations;

Based on the opinions of the Politburo on a number of policies to support employees and employers facing difficulties due to the COVID-19 pandemic in the Document No. 1133-CV/VPTW dated June 25, 2021, of the Party Central Committee’s Office;

Based on the opinions of the Party Committee of the National Assembly on a number of policies to support employees and employers facing difficulties due to the COVID-19 pandemic in the Document No. 2383-CV/DDQH14 dated July 1, 2021;

Pursuant to Resolution No. 66/NQ-CP dated July 1, 2021, of the Government's thematic session on legislation in June 2021;

At the proposal of the Minister of Labor, Invalids and Social Affairs in the Report No. 34/TTr -LDTBXH dated June 2, 2021, and the Report No. 45/TTr -LDTBXH dated June 28, 2021.

HEREBY RESOLVES:

In the face with the complicated developments of the COVID-19 pandemic, which has greatly impacted the people's production, business and lives, the Government decides to implement a number of policies to support COVID-19-hit employees and employers as follows:

I. OBJECTIVES AND PRINCIPLES

1. Objectives

Supporting employees and employers who have been facing difficulties due to the impact of the COVID-19 pandemic, thus contributing to the recovery of production and business, minimizing the negative impacts of the pandemic, stabilizing production and trade, and ensuring good life and safety for employees.

2. Principles

a) Ensuring timely support for the right beneficiaries in a public and transparent manner, allowing no one to take advantage of, or profit from, the policies.

b) Developing criteria and favorable conditions for employees and employers to easily benefit from policies.

c) Ensuring the feasibility and effectiveness of the policies and resources for the implementation thereof. Each group of beneficiaries shall be entitled to benefit only once from one support policy. Employees who are entitled to a one-off financial support (except for the beneficiaries of additional supports prescribed at Points 7, 8, Section II of this Resolution) shall be entitled to only one support policy; beneficiaries who voluntarily refuse to benefit from the policies shall not be supported.

d) Promoting the initiative of all levels, sectors and localities on the basis of their actual conditions in flexibly deploying the support policies to ensure the objectives and principles in a timely manner.

dd) The support from the State budget shall be implemented as follows:

Provinces and municipalities that have to remit over 60% of their revenues to the Central-level budget shall be self-funded.

The Central-level budget shall support other localities on the following principles:

- 80% of the actual expenditures as prescribed in this Resolution, as for the mountainous provinces and the Central Highlands.

- 60% of the actual expenditures as prescribed in this Resolution, as for the provinces that have not yet balanced their budgets (other than the mountainous provinces and the Central Highlands).

- 40% of the actual expenditures as prescribed in this Resolution, as for other provinces and municipalities that have to remit a proportion of their revenues to the Central-level budget.

The provinces and municipalities shall actively use 50% of the local budget reserves (at all 3 levels of province, district and commune) and 70% of the local financial reserve funds and the remaining salary reform sources to implement the principles and support policies prescribed in this Resolution.

II. SUPPORT POLICIES

1. Reduction of premiums for labor accident and occupational disease insurance

Employers are entitled to pay 0% of the salary fund, which serves as the basis for paying social insurance premiums, to the Insurance Fund for Labor Accidents and Occupational Diseases for 12 months (from July 1, 2021 to the end of June 30, 2022) for the premiums of the employees who are subject to labor accident and occupational disease insurance (except for cadres, civil servants, public employees, and people working in the People's Armed Forces, employees of agencies of the Party and the State, administrative agencies, public non-business units whose salaries are paid by the State budget). The employers shall use all amounts obtained from the reduction abovementioned to support their employees in the fight against the COVID-19 pandemic.

2. Suspension of contributions to the fund for retirement and death benefits

If the employers have fully paid social insurance premiums or are temporarily suspending contributions to the retirement and death benefit fund until the end of April 2021 but are affected by the COVID-19 pandemic resulting in a reduction of 15% or more of the employees participating in social insurance, in comparison to that of early April 2021 (including the employees who are out of work, have their labor contracts suspended, or agree to take unpaid leave), such employers and their employees shall be temporarily suspended from making contributions to the retirement and death benefit fund for 6 months from the time of submitting their applications. The cases that have been entitled to the suspension of contributions thereof in accordance with the Resolution No. 42/NQ-CP dated April 9, 2020, and the Resolution No. 154/NQ-CP dated October 19, 2020, of the Government, if eligible, shall still be entitled to this policy, but the total period of postponement shall not exceed 12 months.

3. Support in training to maintain employment for employees

Employers shall be entitled to financial support for training, fostering and improvement of vocational skills from the Unemployment Insurance Fund if they fully pay the unemployment insurance premiums for their employees for full 12 months or more by the date of submitting their applications for support; or change their technological structure as prescribed in Clause 1, Article 42 of the Labor Code; or have their revenues of the preceding quarter before the time of submitting their applications for support decrease by 10% or more in comparison to the same period in 2019 or 2020; or have their own plans or cooperate with vocational education institutions to develop plans for training, fostering and improving vocational skills and qualifications in order to maintain employment for their employees in accordance with law provisions. The maximum support amount is VND 1,500,000/employee/month and the maximum support period is 06 months. Applications for support shall be submitted from July 1, 2021, to the end of June 30, 2022.

4. Assistance for employees having their contracts suspended or unpaid leave

For employees who works at enterprises, cooperatives, public non-business units covering their own recurrent expenditures or their own investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, lower secondary high schools, upper secondary high schools and vocational schools which are temporarily suspended at the request of competent State agencies for the COVID-19 pandemic prevention and control, if they have their labor contracts suspended or take unpaid leave within the term of their labor contracts in 15 consecutive days or more during the period from May 1, 2021 to the end of December 31, 2021, and such suspension or unpaid leave begins during the period from May 1, 2021 to the end of December 31, 2021; and they are paying compulsory social insurance up to the time right before the above suspension or unpaid leave, they shall be entitled to one-off support as follows: VND 1,855,000/person for labor contract suspension or unpaid leave ranging from 15 consecutive days to less than 01 month; and VND 3,710,000/person for labor contract suspension or unpaid leave of 01 month or more.

5. Support to out-of-work employees

Employees working under labor contracts who are out of work in accordance with Clause 3, Article 99 of the Labor Code and subject to medical quarantine or isolated in lockdown areas at the request of competent State agencies within 14 days or more during the period from May 1, 2021 to the end of December 31, 2021; if they are paying compulsory social insurance up to the time right before they are out of work, they shall be entitled to a one-off support of VND 1,000,000/person.

6. Support to employees with their labor contracts temperately terminated

For employees who works at enterprises, cooperatives, public non-business units covering their own recurrent expenditures or their own investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, lower secondary high schools, upper secondary high schools and vocational schools which temperately terminate the labor contracts because competent State agencies request them to suspend their operations in order to prevent and control the COVID-19 pandemic during the period from May 1, 2021 to the end of December 31, 2021; and such employees are paying compulsory social insurance but are not eligible for unemployment benefits, they shall be entitled to a one-off support of VND 3,710,000/person.

7. Additional support and assistance to children

a) Employees as prescribed at Points 4, 5, 6, Section II herein who are pregnant shall be entitled to an additional support of VND 1,000,000/person; those who are raising children or taking care of children under 6 years old shall be entitled to an additional support of VND 1,000,000/under-6-year-old child and only 1 parent of the child shall be supported as such.

b) For children who are under treatment for COVID-19 infection or undertake medical quarantine under decisions of competent State agencies, their treatment expenses and meals as prescribed at Point 8, Section II of this Resolution shall be covered by the State budget; and they shall be entitled to an additional support of VND 1,000,000/child funded by the State budget during their treatment and quarantine during the period from April 27, 2021, to the end of December 31, 2021.

8. People who are under treatment for COVID-19 infection (F0) during the period from April 27, 2021, to the end of December 31, 2021, shall be entitled to a financial support covering their meals of VND 80,000/person/day during their actual treatment time, but not exceeding 45 days.

People who undertake medical quarantine (F1) according to the competent State agencies’ decisions during the period from April 27, 2021, to the end of December 31, 2021, shall be entitled to a financial support covering their meals of VND 80,000/person/day, but not exceeding 21 days.

9. Art directors, actors, and painters holding class IV professional titles in public non-business units engaged in performing arts (excluding art troupes of the armed forces), which must be suspended for 15 days or more in order to prevent and control the COVID-19 pandemic during the period from May 1, 2021, to the end of December 31, 2021, shall be entitled to a one-off support of VND 3,710,000/person.

Tour guides with tourist guide practice cards who are affected by the COVID-19 pandemic during the period from May 1, 2021, to the end of December 31, 2021, shall be entitled to a one-off support of VND 3,710,000/person for.

10. Assistance to business households

Business households which have made their business and tax registration and must be suspended for 15 consecutive days or more during the period from May 1, 2021, to December 31, 2021, at the request of competent State agencies in order to prevent and control the COVID-19 pandemic shall be entitled to a one-off support of VND 3,000,000/household covered by the State budget.

11. Loans to pay for out-of-work employees and for production recovery

a) Loans to pay for out-of-work employees: Employers are entitled to loans from the Vietnam Bank for Social Policies at the interest rate of 0% and do not have to take loan security measures in order for them to pay for their employees who are paying compulsory social insurance but must be out of work for 15 consecutive days or more as prescribed in Clause 3, Article 99 of the Labor Code during the period from May 1, 2021 to the end of March 31, 2022. The employers must have no bad debt at any credit institution and foreign bank branch at the time of applying for such loans. The maximum loan is equal to the regional minimum salary multiplying the number of employees and their actually out-of-work period up to 03 months. The loan term is less than 12 months.

b) Loans to pay for production recovery: Employers, who must suspend their operations at the request of competent State agencies in order to prevent and control the COVID-19 pandemic during the period from May 1, 2021 to the end of March 31, 2022, recovering their production and business, and employers operating in the fields of transportation, aviation, tourism, accommodation services and sending Vietnamese employees to work overseas under contracts during the period from May 1, 2021 to the end of March 31, 2022, shall be entitled to loans from the Vietnam Bank for Social Policies at the interest rate of 0% and do not have to take loan security measures in order for them to pay for the employees working under labor contracts and paying compulsory social insurance. The employers must have no bad debt at any credit institution and foreign bank branch at the time of applying for such loans. The maximum loan is equal to the regional minimum salary multiplying the number of employees under contracts and their actually payment period up to 03 months. The loan term is less than 12 months.

12. For employees without labor contracts (freelancers) and some other special cases:

Based on their specific conditions and budgets, the authorities of provinces and municipalities shall develop criteria, determine the beneficiaries and the support amounts, but the support shall not be lower than VND 1,500,000/person/one-off support or VND 50,000/person/day based on the actual number of days in which they are requested to be suspended by the local authorities.

III. ORGANIZATION OF IMPLEMENTATION

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) Assume the prime responsibility for, and coordinate with relevant agencies in, inspecting and urging the implementation of the Resolution, promptly proposing the Government and the Prime Minister solutions to remove arising difficulties and problems.

c) Allocate the funds to cover meals of children who are under treatment for COVID-19 infection or undertake medical quarantine at the request of competent authorities from the Child Protection Fund as supporting children in other special circumstances based on the agreement with the donors.

2. The Ministry of Finance shall:

a) Ensure the State budget sources to implement the policies prescribed in this Resolution.

b) Base themselves on the provisions of this Resolution, relevant laws and regulations, and the actual expenditures of the localities (certified by the State Treasury) to timely consider and allocate funds from the Central-level budget to each locality, at the same time periodically summarize and report the results to the Prime Minister.

3. The Ministry of Culture, Sports and Tourism shall:

Guide the implementation of support policies as prescribed at Point 9, Section II of this Resolution.

4. The Ministry of Planning and Investment shall:

Assume the prime responsibility for advising the competent authorities to fully allocate capital from the public investment planning to provide management fees for the Vietnam Bank for Social Policies to implement the task of providing loans to employers in order to pay for employees based on the actual disbursement.

5. The State Bank of Vietnam shall:

a) Assume the prime responsibility for, and coordinate with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, the Ministry of Planning and Investment, Vietnam Social Insurance and relevant agencies in promulgating Circulars guiding the simplified order and procedures, and providing refinanced loans to the Vietnam Bank for Social Policies up to VND 7,500 billion with the interest rate of 0%/year and the refinancing term of less than 12 months without collaterals in order to provide loans for the employers prescribed at Point 11, Section II of this Resolution to pay for their employees. The time limit for the refinanced disbursement is until the end of March 31, 2022, or when the refinanced amount is fully disbursed, whichever comes first.

b) Be allowed to use the risk provision set up from the difference between revenues and expenditures of the State Bank of Vietnam to handle the refinanced debts as prescribed in this Resolution if they are overdue for 03 years or more.

6. The Vietnam Bank for Social Policies shall guide and implement the lending policies in accordance with the provisions of Point 11, Section II of this Resolution.

7. The Vietnam Social Security shall implement the policies prescribed in this Resolution within the scope of its responsibilities.

8. The People's Committees of provinces and municipalities:

a) Actively use local resources and direct the implementation of policies prescribed in Section II of the Resolution; make reports on the results of implementation on in line with the schedules and send them to the Ministry of Finance for summarizing and submitting to the competent authorities to make the support.

b) Assume the prime responsibility for determining and approving the list of beneficiaries of the policies prescribed at Points 4, 5, 6, 7, 8, 9, 10, Section II of this Resolution; organize the implementation on a timely, effective and public manner for the right beneficiaries and allow no one to take advantage of, or profit from, the policies.

c) Base themselves on the actual situation of their respective localities to issue support policies as prescribed at Point 12, Section II of this Resolution from the local budgets and other legally mobilized sources.

9. The Ministry of Information and Communications shall assume the prime responsibility for, and coordinate with the Party Central Committee’s Commission for Information and Education, ministries, Central-level and local agencies, and news agencies and newspapers in popularizing this Resolution.

10. The Central Committee of the Vietnam Fatherland Front, the Vietnam General Confederation of Labor and other socio-political organizations are requested to participate in the dissemination, coordination, realization, and supervision of the implementation of this Resolution.

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