Vietnam Issues Support for Employees and Employers Affected by the Pandemic from the Unemployment Insurance Fund
To support employees and employers affected by the pandemic, Vietnam’s Government has issued Resolution No. 116/NQ-CP (September 24, 2021) and Decision 28/2021/QD-TTg (October 1, 2021). The Government has used their budget to provide support from the Unemployment Insurance Fund (UI).
The decision is aimed at helping employees overcome difficulties, normalize their lives, prevent disruption of the labour supply chain and labour shortage. It will also support employers in reducing costs, helping adapt to the new normal, maintaining production, and creating jobs.
Employees Entitled to Aid
- Employees listed as those participating in Unemployment Insurance until September 30, 2021
*Does not include individuals working for Vietnam Authorities or people whose recurrent expenditures are financed by the state budget
- Employees whose employment contracts have been terminated between the period from January 1, 2020 to end of September 30, 2021, and whose UI contribution periods are reserved (except monthly old-age pensioners)
Employee Financial Aid Permitted
The financial aid amount will be in accordance with the UI contribution period during which unemployment benefits are not received.
- 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
Employers Entitled to Aid
Any employer who has been participating in Unemployment Insurance until 1 October 2021, except for employers whose recurrent expenditures are financed by the state budget.
Employer Reduction Rate
The rate of UI contribution from the employer will be reduced from 1% to 0%. This will be from the period 1 October 2021 to 30 September 2022.
*Please note that this is intended to be a general guide. For more information please contact our professional team now. If you are looking for Vietnam payroll services or want to expand your business into Vietnam in a fast and effective way, learn more about our PEO/EoR services.
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