RESOLUTION

ON POLICIES TO SUPPORT EMPLOYEES AND EMPLOYERS IN DIFFICULTY DUE TO COVID-19 PANDEMIC FROM UNEMPLOYMENT INSURANCE FUND

THE GOVERNMENT

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

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

Pursuant to Decree No. 138/2016/ND-CP dated October 1, 2016 of the Government on promulgation of Working Regulations of the Government;

Based on the opinion of the Politburo in the notice No. 1789-CV/VPTW dated September 11, 2021 and 1911-CV/VPTW dated September 23, 2021 of the Office of Central Party Committee;

Pursuant to Resolution No. 03/2021/UBTVQH15 dated September 24, 2021 of the Standing Committee of National Assembly on issuance of policies to support employees and employers in difficulty due to COVID-19 pandemic from Unemployment Insurance Fund;

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

HEREBY RESOLVES:

In response to the complex evolution of Covid-19 pandemic and its serious impacts on various aspects of the society and great impact on employment, living conditions, and income of employees and business of employers, the Government hereby sets out the policy to support employees and employers in difficulty due to Covid-19 pandemic from Unemployment Insurance (UI) Fund as follows:

I. OBJECTIVES, PRINCIPLES

1. Objectives

- Demonstrate the Party's and the State's concern and sharing with employees and employers affected by the COVID-19 pandemic.

- Support employees to overcome difficulties, normalize their lives, prevent disruption of the labor supply chain and labor shortage.

- Support employers to reduce costs, make efforts to adapt to the new normal situation, maintain production and business, and create jobs for employees.

- Promote the role of unemployment insurance policy as a support for employees and employers.

2. Principles

- The support for employees and employers from the UI Fund shall ensure the principle of contribution-based benefits, sharing and fairness for employees and employers that have contributed to the UI fund.

- The implementation of the policy is placed in the overall balance of the State's resources, funds and other support sources. The differences of and priorities for certain entities affected by the COVID-19 pandemic should be taken into account.

- The support for employees and employers must be given in a simple, timely, public, transparent and effective manner and to eligible beneficiaries.

- Not applicable to those who voluntarily waive the support.

II. DETAILS

1. Financial aid for employees paying UI contributions to ease Covid-19 impact from the surplus of UI Fund

a) Regulated entities:

- Employees listed as those participating in Unemployment Insurance until September 30, 2021 (except those working for state agencies, political organizations, socio-political organizations, units of people’s armed forces and public service delivery units whose recurrent expenditures are financed by the state budget). 

- Employees who have stopped paying UI contributions since their 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 in accordance with the employment law (except monthly old-age pensioners).  

b) Financial aid amounts:

Financial aid amounts received that vary according to the UI contribution period during which unemployment benefits are not received will be calculated as follows:  

- UI contribution period of less than 12 months: 1,800,000 dong/person.

- UI contribution period between 12 months and less than 60 months: 2,100,000 dong/person.

- UI contribution period between 60 months and less than 84 months: 2,400,000 dong/person. 

- UI contribution period between 84 months and less than 108 months: 2,650,000 dong/person. 

- UI contribution period between 108 months and less than 132 months: 2,900,000 dong/person.  

- UI contribution period of at least 132 months: 3,300,000 dong/person. 

c) Sources of funds: approximate 30,000 billion dong from surplus of UI Fund until 2020.

d) Financial aid is commencing on October 1, 2021 and completed by December 31, 2021 at the latest. 

2. Reduction in contribution rates to the UI Fund made by employers affected by the COVID-19 pandemic

a) Regulated entities:

Employers prescribed in Article 43 of the Employment listed as those participating in Unemployment Insurance until October 1, 2021 (except state agencies, political organizations, socio-political organizations, units of people’s armed forces and public service delivery units whose recurrent expenditures are financed by the state budget). 

b) Reduction:

The employer’s contribution rate has been reduced from 1 per cent to 0 per cent of the monthly wage fund for employees who have participated in Unemployment Insurance.

c) Reduction period

12 months, from October 1, 2021 to September 30, 2022 inclusive.

III. IMPLEMENTATION

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

a) Take charge and cooperate with relevant agencies in requesting the Prime Minister to issue a Decision to perform the tasks as prescribed in Section II of this Resolution under the simplified procedures.

b) Direct, guide, inspect, and expedite Vietnam Social Security and local governments to initiate the Resolution of the Government and the Decision of the Prime Minister. Propose solutions for resolving difficulties to the Government and the Prime Minister.

2. Ministry of Finance shall request the Prime Minister to consider modifying estimates of revenue and expenses and administration costs of unemployment insurance as prescribed.

3. Vietnam Social Security:

a) Cooperate with Ministry of Labor, War Invalids and Social Affairs in formulating and submitting a draft to the Prime Minister to issue a decision to initiate the Resolution.

b) Implement the policies as prescribed in this Resolution.

c) Promptly report Ministry of Labor, War Invalids and Social Affairs on difficulties for consideration and further actions.

4. The Ministry of Information and Communications shall take charge and coordinate with Central Propaganda Department of the Communist Party, other ministries, central and local agencies, and news agencies and press in organizing the dissemination of this Resolution.

5. Request the Central Committee of the Vietnamese Fatherland Front, the Vietnam General Confederation of Labor, representative organizations of employers, and socio-political organizations to participate in the dissemination, coordination, implementation and supervision of the implementation of the Resolution.

6. Ministers, Heads of Ministerial-level agencies, Heads of Governmental agencies, Presidents of People's Committees of centrally-affiliated cities and provinces shall be held accountable to the Government and the Prime Minister for the implementation of this Resolution and results thereof./.

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