On September 24, 2021, the Government issued Resolution No. 116/NQ-CP on policies to support employees and employers affected by the Covid-19 pandemic from The Unemployment Insurance Fund.
Accordingly, this Resolution has set out support policies for employees and employers, specifically as follows:

For employees
– The applicable subjects are employees who are participating in unemployment insurance as of September 30, 2021 (does not apply to employees working at state agencies, political organizations, socio-political organizations, people’s armed forces units, and public non-business units whose recurrent expenditures are guaranteed by the state budget) and Employees who have temporarily stopped participating in unemployment insurance due to the termination of their labor contracts or working contracts for the period from January 1, 2020, to September 30, 2021, have the time to pay unemployment insurance with contribution periods are reserved (except monthly old-age pensioners).
– The support level will be from 1,800,000 VND/person to 3,300,000 VND/person depending on the period of paying unemployment insurance, specifically: (i) paying unemployment insurance premiums for less than 12 months will support 1,800,000 VND/person; (ii) payment of unemployment insurance from full 12 months to less than 60 months, support 2,100,000 VND/person; (iii) pay unemployment insurance from full 60 months to less than 84 months, support 2,400,000 VND/person; (iv) pay unemployment insurance from full 84 months to less than 108 months, support 2,650,000 VND/person; (v) pay unemployment insurance from full 108 months to less than 132 months, support 2,900,000 VND/person; (vi) pay unemployment insurance for 132 months or more, support VND 3,300,000/person.
– The time to implement the support for employees is from October 1, 2021, and will be completed by December 31, 2021, at the latest.

For employers
– Applicable subjects are employers participating in unemployment insurance such as enterprises, cooperatives, households, business households, cooperative groups, other organizations, and individuals that hire and employ employees according to their requirements employment contract or employment contract.
– The support policy is to reduce the contribution to the Unemployment Insurance Fund for employers affected by the Covid pandemic, specifically: Employers are entitled to reduce the contribution rate from 1% to 0% of the monthly salary fund of employees participating in unemployment insurance (defined in Article 43 of the Employment Law)
– The time to reduce the payment is 12 months from October 1, 2021, to the end of September 30, 2022.

It can be seen that the purpose of the issuance of this Resolution is to show State’s concern for employees and employers affected by the Covid pandemic, and at the same time, contribute to supporting employees to overcome difficulties in their lives, help employers reduce costs, maintain production and business, create jobs for employees, on the other hand, also promote the role of unemployment insurance policy as a support for employees and employers.

Resolution No. 116/NQ-CP takes effect from September 24, 2021.

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