Below is a summary of policies supporting employers and employees working in businesses facing difficulties due to the impact of the Covid-19 pandemic.
These support measures were implemented during the Covid-19 outbreak in Vietnam.
What should businesses do when applying the following regulations?
1. Carefully read the regulations applicable to employers and contact the competent authority (Department of Labor, War Invalids and Social Affairs, Social Insurance) to register.
2. If you require assistance from Expertis, please contact us.
1. Government support policies
Main content: Issuing urgent measures to support businesses and workers. This serves as the basis for ministries and agencies to issue detailed guidelines on support and implementation methods.
View the document here:
| Directive 11/CT-TTg on urgent tasks and solutions to overcome difficulties for production and business, and ensure social security in response to the Covid-19 pandemic. |
April 1, 2020 – Official Letter 9739/SLĐTBXH-LĐ providing guidance on documents for temporarily suspending social insurance contributions.
SUPPORT CONTENT
1. Employees working under labor contracts who agree to temporarily suspend their contracts or take unpaid leave for one month or more due to businesses facing difficulties caused by the Covid-19 pandemic, lacking revenue or financial resources to pay salaries, will receive support at a rate of VND 1.800.000 per person per month. The support period will be based on the actual duration of the temporary suspension of the labor contract or unpaid leave, provided monthly depending on the actual situation of the pandemic, starting from April 1, 2020, and not exceeding three months.
2. Employers facing financial difficulties who have already paid at least 50% of the severance pay to their employees in accordance with Clause 3, Article 98 of the Labor Code between April and June 2020 are eligible for unsecured loans of up to 50% of the regional minimum wage for each employee, based on the actual pay period but not exceeding 3 months, at a 0% interest rate and a maximum loan term of 12 months from the Social Policy Bank to pay the remaining severance pay. The funds will be disbursed directly to the laid-off employees on a monthly basis.
3. Individual business households with declared taxable revenue under 100 million VND/year that temporarily suspend business from April 1, 2020, will receive support of 1.000.000 VND/household/month on a monthly basis, depending on the actual situation of the pandemic, but not exceeding 3 months.
4. Workers whose employment contracts have been terminated but who are not eligible for unemployment benefits; and workers without employment contracts who have lost their jobs will receive support of VND 1.000.000 per person per month, depending on the actual situation of the pandemic, but for a maximum of 3 months. This support will be applied from April to June 2020.
5. Individuals who have rendered meritorious services to the revolution and are currently receiving monthly preferential allowances will receive an additional 500.000 VND per person per month. This will be applied for 3 months, from April to June 2020, and will be paid in a single installment.
6. Social welfare beneficiaries currently receiving monthly social assistance will receive an additional 500.000 VND per person per month. This will be applied for 3 months, from April to June 2020, and will be paid in a single installment.
7. Poor and near-poor households, according to the national poverty standard, on the list as of December 31, 2019, will receive support of VND 250.000 per person per month. The support will be provided for 3 months, from April to June 2020, and will be paid in a single installment.
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| Resolution 42/NQ-CP on measures to support people facing difficulties due to COVID-19 |
It is agreed that businesses affected by the Covid-19 pandemic (businesses where 50% or more of their employees participating in mandatory social insurance have to temporarily cease work) may postpone the payment of trade union fees until December 31, 2021.
| Official document No. 2059/TLĐ from the Vietnam General Confederation of Labor regarding the postponement of trade union fee payments for businesses affected by the Covid-19 pandemic. |
Resolution 154/NQ-CP amends and supplements Resolution 42/NQ-CP on measures to support people facing difficulties due to the Covid-19 pandemic.
Accordingly, additional categories of employees working under labor contracts who have to temporarily suspend their contracts or take unpaid leave for one month or more will receive support of 1.800.000 VND/person/month, including:
+ Employees working at private and non-governmental educational institutions are facing difficulties due to Covid-19, lacking revenue or financial resources to pay salaries.
+ Employees working at public educational institutions that are self-financing their operating expenses at the preschool, kindergarten, primary, secondary, and high school levels are facing difficulties due to Covid-19, lacking revenue or financial resources to pay salaries.
The period of support for temporary suspension of employment contracts and unpaid leave will be provided monthly, depending on the actual situation of the pandemic, starting from April 1, 2020, and not exceeding 3 months.
View the document here:
| Resolution 154/NQ-CP amends and supplements Resolution 42/NQ-CP on measures to support people facing difficulties due to the Covid-19 pandemic. |
SUPPORT CONTENT
1. Policy to reduce the contribution rate for occupational accident and disease insurance.
Employers are allowed to contribute 0% of the wage fund used as the basis for social insurance contributions to the Occupational Accident and Disease Insurance Fund for 12 months (from July 1, 2021 to June 30, 2022) for employees covered by the occupational accident and disease insurance scheme (excluding cadres, civil servants, public employees, members of the people's armed forces, and employees in Party and State agencies, administrative agencies, and public service units receiving salaries from the state budget). Employers will fully support employees with the amount obtained from the reduced contributions to the Occupational Accident and Disease Insurance Fund to combat the COVID-19 pandemic.
2. Policy on temporarily suspending contributions to the pension and death benefit fund.
Employers who have paid social insurance contributions in full or are temporarily suspending contributions to the Pension and Death Benefit Fund until the end of April 2021, and who are affected by the COVID-19 pandemic resulting in a reduction of 15% or more of their employees participating in social insurance compared to April 2021 (including employees who have stopped working, temporarily suspended their employment contracts, or agreed to take unpaid leave), will be allowed to temporarily suspend contributions to the Pension and Death Benefit Fund for 6 months from the date of application. For cases where a temporary suspension of contributions has already been approved under Resolution No. 42/NQ-CP dated April 9, 2020 and Resolution No. 154/NQ-CP dated October 19, 2020 of the Government, if eligible, the request will still be processed, but the total suspension period shall not exceed 12 months.
3. Policies to support training and job retention for workers.
Employers are eligible for financial support from the Unemployment Insurance Fund for training, retraining, and skill upgrading for their employees if they have paid unemployment insurance contributions for at least 12 months up to the time of application; have changed their technological structure as stipulated in Clause 1, Article 42 of the Labor Code; have experienced a revenue decrease of 10% or more in the quarter immediately preceding the application for support compared to the same period in 2019 or 2020; and have a plan or are collaborating with vocational education institutions to develop a plan for training, retraining, and skill upgrading to maintain employment for their employees as prescribed. The maximum support amount is VND 1.500.000 per employee per month, and the maximum support period is 6 months. Applications for support must be submitted between July 1, 2021, and June 30, 2022.
4. Policies to support employees whose employment contracts are temporarily suspended or who take unpaid leave.
Employees working at enterprises, cooperatives, public service units that are self-financing for recurrent or investment and recurrent expenditures, and private educational institutions at the preschool, kindergarten, primary, lower secondary, upper secondary, and vocational education levels that have temporarily suspended operations at the request of competent state agencies to prevent and control the COVID-19 epidemic, and who have had their labor contracts temporarily suspended or taken unpaid leave for 15 consecutive days or more within the term of their labor contracts, from May 1, 2021 to December 31, 2021, and whose temporary suspension or unpaid leave began between May 1, 2021 and December 31, 2021; Employees who are participating in compulsory social insurance up to the time immediately before temporarily suspending their labor contract or taking unpaid leave will receive a one-time support payment as follows: From 15 consecutive days or more to less than 1 month: VND 1.855.000/person; from 1 month or more: VND 3.710.000/person.
5. Policies to support workers who stop working.
Workers employed under labor contracts who were laid off in accordance with Clause 3, Article 99 of the Labor Code and were subject to medical quarantine or located in areas under lockdown as required by competent state authorities for 14 days or more during the period from May 1, 2021 to December 31, 2021; and who were participating in compulsory social insurance up to the time immediately before the layoff, will receive a one-time support payment of VND 1.000.000 per person.
6. Policies to support employees whose employment contracts are terminated.
Workers employed at enterprises, cooperatives, public service units that are self-financing for recurrent or investment and recurrent expenditures, and private educational institutions at the preschool, kindergarten, primary, lower secondary, upper secondary, and vocational education levels, whose employment contracts were terminated due to closure at the request of competent state agencies to prevent and control the COVID-19 pandemic during the period from May 1, 2021 to December 31, 2021; and who are participating in compulsory social insurance but do not meet the conditions for unemployment benefits, will receive a one-time support payment of VND 3.710.000 per person.
7. Additional support policies and children
a) Workers at points 4, 5, and 6 of Section II who are pregnant will receive an additional support of VND 1.000.000 per person; those raising children or providing alternative care for children under 6 years old will receive an additional support of VND 1.000.000 per child under 6 years old, and this support is only provided to one person, either the mother or the father.
b) Children requiring treatment due to COVID-19 infection or medical isolation as decided by competent state agencies will have their treatment and meal costs covered by the state budget as stipulated in Point 8, Section II of this Resolution; they will also receive an additional VND 1.000.000 per child from the state budget during the treatment and isolation period from April 27, 2021 to December 31, 2021.
8. Provide a daily food allowance of VND 80.000 per person for individuals undergoing treatment for COVID-19 infection (F0), from April 27, 2021 to December 31, 2021. The support period will be based on the actual treatment duration, but for a maximum of 45 days.
A daily meal allowance of VND 80.000 per person will be provided to individuals required to undergo medical quarantine (F1) as decided by competent state authorities, from April 27, 2021 to December 31, 2021, for a maximum period of 21 days.
9. A one-time support payment of VND 3.710.000 per person will be provided to art directors, actors, and painters holding professional titles of rank IV in public performing arts units (excluding performing arts units of the armed forces) that have had to cease operations for 15 days or more to prevent and control the COVID-19 epidemic during the period from May 1, 2021 to December 31, 2021.
A one-time support payment of VND 3.710.000 per person will be provided to licensed tour guides who were affected by the COVID-19 pandemic between May 1, 2021 and December 31, 2021.
10. Policies to support household businesses
Household businesses with business registration and tax registration that have ceased operations for 15 consecutive days or more between May 1, 2021 and December 31, 2021 at the request of competent state agencies to prevent and control the COVID-19 epidemic will receive a one-time support payment of VND 3.000.000 per household from the state budget.
11. Loan policy for paying wages during work stoppages and for restoring production.
a) Loans for paying wages during work stoppages: Employers can borrow funds from the Social Policy Bank at a 0% interest rate and without collateral to pay wages to employees participating in compulsory social insurance who have stopped working for 15 consecutive days or more, as stipulated in Clause 3, Article 99 of the Labor Code, during the period from May 1, 2021 to March 31, 2022. Employers must not have any bad debts at credit institutions or branches of foreign banks at the time of loan application. The maximum loan amount is equal to the regional minimum wage for the number of employees for a maximum of 3 months of actual work stoppage. The loan term is less than 12 months.
b) Loans for payroll support to restore production: Employers who had to temporarily suspend operations due to requirements from competent state agencies to prevent and control the COVID-19 epidemic from May 1, 2021 to March 31, 2022, and who resume production and business activities, as well as employers operating in the fields of transportation, aviation, tourism, accommodation services, and sending Vietnamese workers abroad under contract during the period from May 1, 2021 to March 31, 2022, are eligible to borrow capital from the Social Policy Bank at a 0% interest rate and are not required to provide collateral to pay salaries to employees working under labor contracts and participating in compulsory social insurance. Employers must not have bad debts at credit institutions and branches of foreign banks at the time of loan application. The maximum loan amount is equal to the regional minimum wage for employees working under employment contracts with a maximum of 3 months of actual salary payment. The loan term is less than 12 months.
12. For workers without employment contracts (freelancers) and certain other specific groups:
Based on the specific conditions and budgetary capacity of the locality, provinces and cities shall develop criteria, determine the beneficiaries, and the amount of support, but the support amount shall not be less than VND 1.500.000/person/time or VND 50.000/person/day based on the actual number of days of temporary suspension of operations as required by the locality.
View the document here:
| Resolution 68/NQ-CP on policies to support workers and employers facing difficulties due to COVID-19. |
This is a detailed guide on the implementation of Resolution No. 68/NQ-CP dated July 1, 2021, of the Government on a number of policies to support workers and employers facing difficulties due to the COVID-19 pandemic.
SPECIFIC SUPPORT INCLUDES:
1. Reduce the contribution rate for occupational accident and disease insurance.
+ Contribution rate: 0% of the wage fund used as the basis for social insurance contributions.
+ Application period: 12 months, from July 1, 2021 to June 30, 2022.
2. Support for employees and employers to temporarily suspend contributions to the pension and death benefit fund.
Eligible employees and employers as stipulated in Article 5 of this Decision may temporarily suspend contributions to the retirement and death benefit fund for 6 months, starting from the month the employer submits the application.
3. Support employers in training, retraining, and upgrading the vocational skills of their employees to maintain employment.
4. Support for employees who temporarily suspend their employment contracts or take unpaid leave.
Level of support:
a) VND 1.855.000 per person for employees whose labor contracts are temporarily suspended or who are on unpaid leave for 15 consecutive days or more but less than one month (30 days).
b) VND 3.710.000 per person for employees whose labor contracts are temporarily suspended or who are on unpaid leave for 01 month (30 days) or more.
5. Policies to support workers who stop working.
Support amount: 1.000.000 VND/person.
6. Support for workers whose employment contracts are terminated but who are not eligible for unemployment benefits.
Support amount: 3.710.000 VND/person.
7. Support for children and individuals undergoing treatment for COVID-19 and medical isolation.
8. Support for arts professionals and tour guide workers.
9. Support for household businesses
Support amount: 3.000.000 VND per business household.
10. Support employers in borrowing funds to pay wages during work stoppages and wages for the resumption of production.
View the full text here:
| Decision 23/2021/QD-TTg stipulates the implementation of several policies to support workers and employers facing difficulties due to COVID-19. |
Instructions on the procedures for implementing Decision 23 can be found here:
1. Providing financial support to workers affected by the COVID-19 pandemic from the surplus of the Unemployment Insurance Fund.
a) Applicable subjects
- Workers participating in unemployment insurance as of September 30, 2021 (excluding workers employed in state agencies, political organizations, socio-political organizations, people's armed forces units, and public service units whose recurrent expenditures are covered by the state budget).
- Workers who ceased participating in unemployment insurance due to the termination of their employment contract or work agreement between January 1, 2020, and September 30, 2021, will have their unemployment insurance contributions preserved according to the provisions of the law on employment, excluding those receiving monthly pensions.
b) Level of support
The level of support is based on the length of time the worker has contributed to unemployment insurance but has not yet received unemployment benefits, specifically as follows:
- For those who have contributed to unemployment insurance for less than 12 months: a support payment of VND 1.800.000 per person will be provided.
- For those who have contributed to unemployment insurance for at least 12 months but less than 60 months: a support payment of VND 2.100.000 per person will be provided.
- For those who have contributed to unemployment insurance for at least 60 months but less than 84 months: a support payment of VND 2.400.000 per person will be provided.
- For those who have contributed to unemployment insurance for at least 84 months but less than 108 months: a support payment of VND 2.650.000 per person will be provided.
- For those who have contributed to unemployment insurance for at least 108 months but less than 132 months: a support payment of VND 2.900.000 per person will be provided.
For those who have contributed to unemployment insurance for 132 months or more: a support payment of 3.300.000 VND per person will be provided.
c) Funding source: approximately 30.000 billion VND from the surplus of the Unemployment Insurance Fund as of the end of 2020.
d) The period for providing support to workers will start from October 1, 2021 and be completed no later than December 31, 2021.
2. Reduce the contribution rate to the Unemployment Insurance Fund for employers affected by the COVID-19 pandemic.
a) Applicable subjects:
Employers as defined in Article 43 of the Employment Law (excluding state agencies, political organizations, socio-political organizations, people's armed forces units, and public service units whose recurrent expenditures are covered by the state budget) who were participating in unemployment insurance before October 1, 2021.
b) Reduction in closing amount:
Employers are allowed to reduce their unemployment insurance contribution rate from 1% to 0% of the monthly wage fund for employees who are eligible for unemployment insurance.
c) Timeframe for implementing the contribution reduction:
12 months, from October 1, 2021 to September 30, 2022.
2. Support from Ho Chi Minh City
THE SPECIFIC LEVELS OF SUPPORT ARE AS FOLLOWS:
1. Meal allowance policy
a) Individuals specified in point b, clause 5, Article 1 of Government Resolution No. 16/NQ-CP dated February 8, 2021, on medical isolation costs, medical examination and treatment, and some special regimes in the prevention and control of Covid-19, are entitled to a food allowance of VND 80.000/person/day during the period of mandatory centralized medical isolation.
b) Individuals participating in epidemic prevention and control work who fall under the categories specified in Clause 5, Article 2 of Government Resolution No. 16/NQ-CP dated February 8, 2021, and other forces directly involved in Covid-19 epidemic prevention and control work, will receive a meal allowance of VND 120.000/person/day during their participation in epidemic prevention and control.
2. Policies to support employees who temporarily suspend their employment contracts or take unpaid leave.
a) Employees whose labor contracts are temporarily suspended or who are on unpaid leave at enterprises; production and business establishments; private and public educational institutions that are self-financing at the preschool, kindergarten, primary, lower secondary, and upper secondary levels; and private and vocational education institutions (with their main office in Ho Chi Minh City) with a period of temporary suspension or unpaid leave lasting 30 consecutive days or more within the term of the labor contract, from May 1, 2021 to December 31, 2021, and the start date of the temporary suspension or unpaid leave falls within the period from May 1, 2021 to December 31, 2021; Those who were participating in compulsory social insurance up to the time immediately before temporarily suspending their labor contract or taking unpaid leave are entitled to a one-time support payment of VND 1.800.000 per person.
b) Specifically, pregnant workers will receive an additional 1.000.000 VND per person; those raising children under 6 years old will receive an additional 1.000.000 VND per child under 6 years old, and this support is only provided to one person, either the mother or the father, or the person directly raising the child.
3. Policies to support workers whose employment contracts have been terminated but who are not eligible for unemployment benefits.
a) Workers employed at enterprises; production and business establishments; private and public educational institutions that self-finance their operating expenses at the preschool, kindergarten, primary, lower secondary, and upper secondary levels; and private and vocational education institutions (with their main office in Ho Chi Minh City) whose employment contracts were terminated between May 1, 2021, and December 31, 2021, and whose names are on the list of those participating in compulsory social insurance but who do not meet the conditions for receiving unemployment benefits (except for cases where workers are not entitled to unemployment insurance according to the provisions of the 2013 Employment Law and related guiding documents) will receive a one-time support payment of VND 1.800.000 per person.
b) Specifically, pregnant workers will receive an additional 1.000.000 VND per person; those raising children under 6 years old will receive an additional 1.000.000 VND per child under 6 years old, and this support is only provided to one person, either the mother or the father, or the person directly raising the child.
4. Policies to support workers without employment contracts (freelancers) who have lost their jobs due to the impact of the Covid-19 pandemic.
a) Workers without labor contracts (freelancers) legally residing in Ho Chi Minh City (in the case of temporary residence, they must have a temporary residence registration confirmed by the police) who have lost their jobs, have no income or have an income lower than VND 4.000.000/month (the city's near-poverty threshold for the 2021-2025 period) and work in one of the following six types of jobs: Street vending, small-scale trading; garbage and scrap collection; loading and unloading goods; mobile lottery ticket sales; self-employed or working for household businesses in the fields of food and beverage, accommodation, tourism, healthcare (including security); working in certain sectors that must temporarily cease operations as directed by the People's Committee of Ho Chi Minh City in Official Letter No. 1749/UBND-VX dated May 30, 2021.
b) Support level: 50.000 VND/person/day.
c) Support period: applicable during the social distancing period as per Directive No. 15/CT-TTg dated March 27, 2020, of the Prime Minister on decisively implementing the peak period of COVID-19 prevention and control; effective until December 31, 2021.
5. Support for businesses that have to cease operations.
a) Direct financial support for business households established under the Enterprise Law and currently operating (excluding house/premises rental activities) that must cease operations at the request of the People's Committee of Ho Chi Minh City to control the Covid-19 epidemic (applicable to areas implementing Directive No. 16/CT-TTg dated March 31, 2020 of the Prime Minister on implementing urgent measures to prevent and control the Covid-19 epidemic: Go Vap District, Thanh Loc Ward, District 12 and other areas as directed by the People's Committee of Ho Chi Minh City).
b) Amount of support: 2.000.000 VND/household (one-time support).
6. Support for traders in traditional markets.
a) Provide direct financial support to traders in traditional markets (those with business locations, stalls, kiosks, or shops situated within the market area); possess a tax identification number; and fulfill all financial obligations to the market management unit and tax obligations to the State.
b) Support period: 6 months, from July 2021 to the end of December 2021.
c) Level of support:
Category 1 markets: 300.000 VND/business stall/month.
Category 2 markets: 210.000 VND/business stall/month.
Category 3 markets: 150.000 VND/business stall/month.
This provision does not apply to business households that have already received support under Clause 5 of this Article.
(Market classification as stipulated in Government Decree No. 02/2003/ND-CP dated January 14, 2003 on the development and management of markets and Government Decree No. 114/2009/ND-CP dated December 23, 2009 amending and supplementing some articles of Decree No. 02/2003/ND-CP).
7. Funding source: The total cost for items 1, 2, 3, 4, 5, and 6 of Article 2 is approximately 886.000.000.000 VND (eight hundred and eighty-six billion VND), to be disbursed from the City's budget.
View the full text here.
Instructions can be found here:
