Covid-19: Newly issued policies to support employers from the Unemployment Insurance Fund

LEGAL UPDATES

Covid-19: Newly issued policies to support employers from the Unemployment Insurance Fund

On September 24th, 2021, the Government issued Resolution No. 116/NQ-CP on policies to support employees and employers affected by the Covid-19 pandemic from the Unemployment insurance fund. Accordingly, from October 1st, 2021, enterprises facing difficulties due to Covid-19 are entitled to reduce the unemployment insurance premium for employees to 0%.

The employers governed by the Resolution 116/NQ-CP are employers specified in Article 43 of the Employment Law who has been participating in unemployment insurance before October 1st, 2021, with exceptions of state agencies and political organizations, socio-political organizations, people’s armed forces units and public non-business units whose recurrent expenditures are guaranteed by the state budget.

The said employers are entitled to reduce the contribution rate from 1% to 0% of the monthly salary fund of employees who are subject to unemployment insurance. The duration of payment reduction is 12 months, from October 1st, 2021 to the end of September 30th, 2022.

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This legal update is for general information only and is not a substitute for legal advice.