RESOLUTION NO. 116/NĐ-CP ON POLICIES TO SUPPORT EMPLOYEES FROM THE UNEMPLOYMENT INSURANCE FUND

The Government has promulgated Resolution No. 116/NQ-CP on policies to support employees and employers affected by the Covid-19 pandemic from the Unemployment Insurance Fund. Under this Resolution, unemployment insurance policies have undergone several changes.

⭐ 1. Unemployment insurance contribution rate

·         Reduction of unemployment insurance contributions for employers:
Resolution 116 provides for a reduction in contributions to the Unemployment Insurance Fund for employers affected by the Covid-19 pandemic. Accordingly, employers are entitled to a reduction in the contribution rate from 1% to 0% of the monthly payroll fund of employees subject to unemployment insurance.

·         Duration of the reduction:
The reduction applies for a period of 12 months, from 01 October 2021 to 30 September 2022.

👉 This policy does not apply to State agencies, political organizations, socio-political organizations, people’s armed forces units, and public service units whose recurrent expenditures are guaranteed by the State budget and which participated in unemployment insurance before 01 October 2021.

⭐ 2. Employees participating in unemployment insurance are eligible to receive financial support

·         Employees affected by the Covid-19 pandemic will receive financial support from the surplus of the Unemployment Insurance Fund.

·         Eligible beneficiaries include employees falling into one of the following two cases:

·         Employees who were participating in unemployment insurance as of 30 September 2021 (excluding employees working for State agencies, political organizations, socio-political organizations, people’s armed forces units, and public service units whose recurrent expenditures are guaranteed by the State budget);

·         Employees who ceased participation in unemployment insurance due to termination of labor contracts or working contracts during the period from 01 January 2020 to 30 September 2021, and whose unemployment insurance contribution period is preserved (excluding those receiving monthly pensions).

·         The level of support is based on the period of unemployment insurance contributions that has not yet been used to receive unemployment benefits, specifically as follows:

·         Contribution period of less than 12 months: support of VND 1.8 million per person;

·         Contribution period from full 12 months to under 60 months: support of VND 2.1 million per person;

·         Contribution period from full 60 months to under 84 months: support of VND 2.4 million per person;

·         Contribution period from full 84 months to under 108 months: support of VND 2.65 million per person;

·         Contribution period from full 108 months to under 132 months: support of VND 2.9 million per person;

·         Contribution period of 132 months or more: support of VND 3.3 million per person.