Recently, 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
Vietnam: Resolution 154/NQ-CP on assistance for people affected by the COVID-19 pandemic is available (Illustrative Image)
Under Resolution 154/ND-CP which amends and supplements Resolution 42/ND-CP on assistance for people affected by the COVID-19 pandemic in Vietnam:
1. Amend and supplement Point 1, Section II, Resolution 42/ND-CP
New content: In case employees working under employment contracts must agree on suspension of employment contracts, take unpaid leave for one month or more because their employers, people-founded/private educational institutions, or public educational institutions that cover regular expenses at all levels of preschools, kindergartens, primary schools, lower secondary schools, and upper secondary schools face difficulties due to the Covid-19 pandemic, have no revenue or no financial resources to pay salaries, they shall receive 1,800,000/person/month. The assistance period depends on the actual suspension period of employment contracts, and unpaid leave period, according to the monthly situation of the epidemic developments, from April 1, 2020, and not exceeding 3 months.
Amended content: In case employees working under employment contracts must agree on suspension of employment contracts, take unpaid leave for one month or more because their employers face difficulties due to the COVID-19 pandemic, have no revenue or no financial resources to pay salaries, they shall receive 1,800,000/person/month. The assistance period depends on the actual suspension period of employment contracts, and unpaid leave period, according to the monthly situation of the epidemic developments, from April 1, 2020, and not exceeding 3 months.
=> Resolution 154/ND-CP extends the entities affected by the COVID-19 pandemic eligible for assistance. Employees working in people-founded/private educational institutions, or public educational institutions that cover regular expenses at all levels of preschools, kindergartens, primary schools, lower secondary schools, and upper secondary schools are eligible for assistance.
2. Amend and supplement Point 2, Section II, Resolution 42/ND-CP
New content: Employers with revenue in Quater I of 2020 decreased by 20% or more compared to Quater IV of 2019, or revenue in the quarter immediately preceding the time for applying for assistance decreased by 20% or more compared to the same period in 2019 may apply for an unsecured loan that is worth up to 50% of total region-based minimum wages of suspended employees as stipulated in Clause 3, Article 98 of the Labor Code from April to December 2020 over the suspension period (but not exceeding 3 months) at an interest rate of 0% with a loan term of up to 12 months from a Vietnam Bank for Social Policies. Employers directly prepare the application for a loan, self-declare, and are responsible before the law for the accuracy and truthfulness of the number of suspended employees, and the revenue figures meeting the loan conditions, and send them to the Vietnam Bank for Social Policies to enjoy the assistance as prescribed.
Amended content: An employer who is facing financial difficulties and has paid at least 50% of suspension allowance for their employees in accordance with Clause 3 Article 98 of the Labor Code during the period from April to June 2020 may apply for an unsecured loan that is worth up to 50% of total region-based minimum wages of suspended employees over the suspension period (but not exceeding 3 months) at an interest rate of 0% with a loan term of up to 12 months from a Vietnam Bank for Social Policies. The loan shall be used for payment of the unpaid wage and disbursed monthly to pay the suspended employees.
=> Resolution 154/ND-CP specifically amends the conditions for employers entitled to unsecured loans to pay workers' suspended salaries.
3. Amend and supplement Point 1, Section III, Resolution 42/ND-CP
New content: 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.
Original content: 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.
=> Resolution 154/ND-CP amends the condition for suspension of contributions to the retirement and survivorship fund by employees and employers, requiring a reduction of only 20% of the employees participating in social insurance instead of 50% according to Resolution 42/ND-CP. However, the suspension period is shortened to a maximum of 03 months instead of a maximum of 12 months as previously prescribed.
Customers and Members can view detailed regulations on assistance for people affected by the COVID-19 pandemic at Resolution 42/ND-CP and Resolution 154/ND-CP.
Thuy Tram
