Supporting employees and employers facing difficulties due to the COVID-19 epidemic

Deputy Prime Minister Le Minh Khai has just signed Decision No. 23/2021/QD-TTg on implementing a number of policies to support employees and employers facing difficulties due to the COVID-19 pandemic.

The Decision states to reduce the insurance premium for labour accidents and occupational diseases. Specifically, the object of support is the employer who contributes to the labour accident and occupational disease insurance fund for employees under the law. The application period is from July 1, 2021 to the end of June 30, 2022

Support employees and employers to temporarily suspend contributions to the retirement fund.

Accordingly, the beneficiaries are employees and employers who are subject of compulsory social insurance as prescribed in Article 2 of the Law on Social Insurance.

The Decision also supports employers in training, retraining and improving vocational skills to maintain jobs for employees.

It also supports employees to suspend the performance of their labour contracts or take unpaid leave.

The support also includes employees who terminate their employment contracts but are not eligible for unemployment benefits; children and people being treated for COVID-19 or medical isolation; tour guide and artists; household business…

Employees who take unpaid leave or their work contracts are suspended due to the pandemic are entitled to a one-time support of VND 1,855,000 (US$80) per person. The period of suspension or unpaid leave must be at least 15 continuous days to less than one month between May 1, 2021, and December 31, 2021 period and employees must be contributing to the social insurance of the month before starting the work suspension.

Employees that are out of work (take unpaid leave or their work contract is suspended) for more than a month will be entitled to VND 3,710,000 (US$161).

This applies to employees working at enterprises, cooperatives, public business units, and educational institutions.

Employees that cannot work due to being in medical isolation or in blockaded areas for more than 14 days are also entitled to a one-time payment of VND 1,000,000 (US$43) provided they have been contributing to social insurance.

Employees whose labor contracts were terminated and are not eligible for unemployment allowance between May 1, 2021, to December 31, 2021, due to the pandemic will be entitled to a one-time payment of VND 3,710,000 (US$161) provided they were contributing to social insurance.

In addition, employees that are pregnant are eligible to receive VND 1,000,000 (US$43); those taking care and raising children under 6 years of age are eligible for an additional VND 1,000,000 (US$43) per child.

People that undergo treatment for COVID-19 from April 27, 2021, to December 31, 2021, are eligible for a meal allowance of VND 80,000 (US$3) per day for a maximum of 45 days as well as individuals that have to undergo treatment as per government or health authorities.

People that undergo isolation (F1) from April 27, 2021, to December 31, 2021, are eligible for a meal allowance of VND 80,000 (US$3) per day for a maximum of 21 days.

Individuals working as art directors, actors, painters, and tour guides that have had to suspend operations for more than 15 days between May 1, 2021, to December 31, 2021, are eligible for a one-time payment of VND 3,710,000 (US$161).

This will depend on each provincial authority or city; however, the support will not be lower than VND 1,500,000 (US$65) per person for one time or VND 50,000 (US$2) per person/per day based on the actual number of suspended days.

Business households with a registration certificate and tax registration that have had to cease operations for 15 continuous days between May 1, 2021, to December 31, 2021, are entitled to one-time support of VND 3,000,000 (US$130)

In addition, the Ministry of Finance in June issued Circular no 47/2021/TT-BTC (Circular 47) reducing fees charges for several business lines affected by the pandemic from July 1, 2021, to December 31, 2021. Industries that can benefit include, banks, construction activities, tour businesses, water resources, securities, commercial publications, healthcare, automobiles, and so on.

Further, most banks have agreed to cut the lending rate for businesses affected by the pandemic.

The Decision takes effect from July 7, 2021./.

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