On 24 September 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. We would like to highlight some of the salient points of Resolution No. 116/NQ-CP as follows:
• Ensure the principle of contribution-based benefits, sharing and fairness;
• Policy implementation is placed in the overall balance of the State’s resources, funds and other support sources; and
• The support for employees and employers must be given in a simple, timely, public, transparent and effective manner and to eligible beneficiaries.
FINANCIAL AID FOR EMPLOYEES
► Eligible people
• Employees listed as those participating in Unemployment Insurance until September 30, 2021
• Employees whose employment contracts have already been terminated within the period from 1 January 2020 to end of 30 September 2021, and whose UI contribution periods are reserved (except monthly oldage pensioners).
► Financial aid amounts
► Sources of funds: approximately 30,000 billion dong from surplus of UI Fund until 2020.
► Financial aid commences on 1 October 2021 and completed by 31 December 2021 at the latest.
FINANCIAL AID FOR EMPLOYERS – REDUCTION IN CONTRIBUTION RATES TO THE UI FUND
► Regulated entities
• Employers participate in Unemployment Insurance until 1 October 2021.
• The employer’s contribution rate has been reduced from 1% to 0% of the monthly wage fund.
• Reduction period: 12 months, from 1 October 2021 to 30 September 2022 inclusive.
If you require further information, please feel free to contact us.
UHY AUDITING AND CONSULTING CO LTD
Nguyen Trung Thanh – Partner
Tran Thi Bo – Director
Phung Thi Oanh –Director