Decision No. 32/2020/QĐ-TTg: Facilitating employers to take loans to provide suspension pay for workers in Vietnam

According to Clauses 3 and 4 Article 1 of the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam, amending Article 13 of the Decision No. 15/2020/QĐ-TTg in the direction of creating favorable conditions take loans to provide suspension pay for workers due to Covid-19, specifically as follows:

- Clause 1 Article 13 of the Decision No. 15/2020/QĐ-TTg:

Amending content: Have employees participating in mandatory social insurance suspending occupation for at least 1 month consecutively from April 1, 2020 to December 31, 2020 inclusively.

Amended content: There is at least 20% of the workers or at least 30 workers who have social insurance are suspended for at least 01 consecutive month; at least 50% of the suspension pay has been provided for these workers during the period from April 01 to June 30, 2020.

- Clause 2 Article 13 of the Decision No. 15/2020/QĐ-TTg:

Amending content: Employers having revenue in the first Quarter of 2020 reduced by at least 20% compared to the fourth Quarter of 2019 or revenue of the Quarter immediately before the date of considering benefits reduced by 20% compared to the same Quarter of 2019.

Amended content: The employer is facing financial hardship and thus does not have sufficient funds to provide the suspension pay after using up the backup wage fund.

Thus, according to the above provisions, conditions for employers to take loans to provide suspension pay for workers due to Covid-19 have been expanded, specifically as follows:

1. Having employees participating in mandatory social insurance suspending occupation for at least 1 month consecutively from April 1, 2020 to December 31, 2020 inclusively;

2. Having revenue in the first Quarter of 2020 reduced by at least 20% compared to the fourth Quarter of 2019 or revenue of the Quarter immediately before the date of considering benefits reduced by 20% compared to the same Quarter of 2019;

3. Do not have bad debts at credit institutions and foreign bank branches by December 31, 2019.

View more details at the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam, issued on October 19, 2020.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE