On October 19, 2020, the Government of Vietnam issued Resolution 154/NQ-CP 2020 on amendments to Resolution 42/NQ-CP on assistance for people affected by Covid-19 pandemic.
Article table of contents
Resolution 154: Loosen conditions for suspension of contributions to the retirement and survivorship fund in Vietnam (Illustrative Image)
One of the important contents of Resolution 154/NQ-CP is loosening conditions for the suspension of contributions to the retirement and survivorship fund for employees and employers in Vietnam.
Point c, clause 1 Resolution 154/NQ-CP stipulates amendments to point 1, section III of Resolution 42/NQ-CP as follows:
In case employers are affected by the Covid-19 pandemic, leading to a reduction of 20% or more employees participating in social insurance compared to the time when the competent authority made the epidemic declaration (including employees who are subject to work suspension, suspension of employment contracts, take unpaid leave), employees and employers are entitled to suspension of contributions to the retirement and survivorship fund for no more than 03 months from the time of submitting the application.
On this matter, previously, Resolution 42/NQ-CP stipulated as follows:
In case employers are affected by the Covid-19 pandemic, leading to a reduction of 50% or more employees participating in social insurance compared to the time when the competent authority made the epidemic declaration (including employees who are subject to work suspension, suspension of employment contracts, take unpaid leave), employees and employers are entitled to suspension of contributions to the retirement and survivorship fund for no more than 12 months.
Thus, Resolution 154/NQ-CP issued by the Government of Vietnam has loosened the conditions for the suspension of contributions to the retirement and survivorship fund by employers and employees. If, previously, Resolution 42/NQ-CP stipulated that in case employers are affected by the Covid-19 pandemic, leading to a reduction of 50% or more employees participating in social insurance, employees and employers are entitled to suspension of contributions to the retirement and survivorship fund, then under Resolution 154/NQ-CP, only a reduction of 20% or more participants in social insurance is required. However, the suspension period of contributions to the retirement and survivorship fund will decrease from a maximum of 12 months to a maximum of 03 months. Thus, employees and employers can only suspend contributions to the retirement and survivorship fund for a maximum of 03 months from the time of submitting the application
Resolution 154/NQ-CP officially takes effect from October 19, 2020; employees and employers should take note to promptly receive assistance.
Thuy Tram
