Vietnam to support pandemic-hit workers and employers

About VND30 trillion (US$1.32 billion) from the unemployment insurance fund will be used.

Workers who stand to benefit from this policy are those who are covered by unemployment insurance as of September 30, 2021. However, employees of state agencies, political organisations, socio-political organisations, units of the people’s armed forces, and non-business public agencies which are paid by the state budget are excluded.

Other workers who will get the financial aid are those who have stopped contributing to unemployment insurance due to the termination of their labour contracts or have working contracts between January 1, 2020 and September 30, 2021, and have unemployment insurance contribution period reserved in accordance with legal regulations on employment. Retirees who receive monthly pensions are excluded.

The funds are expected to be disbursed between October 1 and December 31 this year.

For employers, they will be entitled to a reduction in unemployment insurance contributions from 1% to 0% of the monthly salary fund for their staff covered by unemployment insurance. The reduction will be effective for 12 months from 1 October 2021 to 30 September 2022.

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Employers which are state agencies, political organisations, socio-political organisations, units of the people’s armed forces, and non-business public agencies which are paid by the state budget, which are taking part in unemployment insurance before 1 October 2021 are not eligible for this scheme, according to VNA.