Vietnam Government: Enterprises can borrow a loan at the interest rate of 0% to pay furlough wages due to Covid-19

Enterprises can borrow a loan at the interest rate of 0% to pay furlough wages due to Covid-19

Loan to pay furlough wages:

The employer is entitled to borrow a loan from the Bank for Social Policies at the interest rate of 0% and is not required to furnish a loan security to pay furlough wages to the employees who have contributed to compulsory social insurance and have been put on furlough for 15 consecutive days or more as prescribed in Clause 3, Article 99 of the Labor Code of Vietnam (from May 1, 2021 to the end of March 31, 2022).

Note:

- The employer must have no bad debt at any credit institution and foreign bank branch at the time of applying for a loan

- The maximum loan amount is equal to the regional minimum wage for the number of employees according to the actual payment period of furlough wages but not exceeding 03 months.

- The loan term is less than 12 months.

Loan to pay wages for production recovery:

The employer is entitled to borrow a loan from the Bank for Social Policies at the interest rate of 0% and is not required to furnish a loan security to pay wages to the employees who have worked under employment contracts and have contributed to compulsory social insurance if it resumes the business after suspending operations at the request of the competent authority to prevent and control the COVID-19 pandemic, from May 1, 2021 to the end of March 31, 2022 and its line of business is in the field of transportation, aviation, tourism, accommodation services, sending Vietnamese workers to work abroad under a contract from May 1, 2021 to the end of March 31, 2021.

Note:

- The employer must have no bad debt at any credit institution and foreign bank branch at the time of applying for a loan. 

- The maximum loan amount is equal to the regional minimum wage for the number of employees under employment contracts according to the actual payment period of wages but not exceeding 03 months. 

- The loan term is less than 12 months. 

Bao Ngoc

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