03 social insurance and unemployment insurance policies to support workers and businesses facing difficulties due to Covid-19

According to Resolution 68/NQ-CP dated July 1, 2021, the Government has introduced a series of policies to support workers and businesses facing difficulties due to Covid-19, including 03 policies related to insurance. social insurance, unemployment insurance

1. Policy to reduce insurance premiums for occupational accidents and diseases

Accordingly, the employer is entitled to apply the payment rate equal to 0% of the salary fund as a basis for paying social insurance contributions to the Insurance Fund for Occupational Accidents and Diseases for 12 months (from July 1, 2021) until the end of June 30, 2022) for employees subject to occupational accident and occupational disease insurance (except for cadres, civil servants, public employees, people in the people’s armed forces, laborers, etc.). working in agencies of the Party, the State, administrative agencies, public non-business units receiving salaries from the state budget).

The employer will support the entire amount obtained from the reduction of contributions to the Occupational Accident and Occupational Health Insurance Fund for employees to prevent the COVID-19 pandemic.

Currently, according to Decree 58/2020/ND-CP, the compulsory social insurance contributions to the Fund of Occupational Accidents and Diseases are as follows:

• The normal payment level is equal to 0.5% of the salary fund as the basis for paying social insurance premiums;
• The rate of payment is equal to 0.3% of the salary fund as a basis for payment of social insurance, applicable to enterprises operating in occupations with high risk of occupational accidents and diseases, if they meet the prescribed conditions, have a written request and are approved by the Government. Approved by the Ministry of Labour, Invalids and Social Affairs

2. Policy on temporary suspension of contributions to the retirement and survivorship fund

With this policy, employers who have paid full social insurance or are temporarily suspending contributions to the Pension and Survivorship Fund until the end of April 2021 but are affected by the COVID-19 pandemic, resulting in a reduction of 15% of their employees. Employees participating in social insurance or more compared to April 2021 (including employees who stop working, suspend the performance of labor contracts, and agree to take unpaid leave):

Employees and employers are entitled to suspend payment to the retirement and survivorship fund for 6 months from the time of application submission.

For cases that have been resolved to suspend payment under Resolution 42/NQ-CP dated April 9, 2020 and  Resolution 154/NQ-CP dated October 19, 2020 of the Government, if eligible, they will still be entitled to the payment. resolved, but the total period of suspension does not exceed 12 months.

Currently, according to the 2014 Social Insurance Law, the compulsory social insurance contributions to the retirement and survivorship fund are as follows:

– Employees pay 8% of their monthly salary to the retirement and survivorship fund;

– The employer must pay 14% of the salary fund for social insurance every month.

3. Policies to support training and job maintenance for employees

Employers are supported with funding for training, retraining and skill improvement from the Unemployment Insurance Fund when meeting the following conditions:

+ Fully pay unemployment insurance for employees for full 12 months or more up to the time of requesting for support;

+ Change the technological structure according to the provisions of Clause 1, Article 42 Labour Code;

+ Having revenue of the preceding quarter before the time of requesting for support decreases by 10% or more compared to the same period in 2019 or 2020;

+ Develop a plan or coordinate with vocational education institutions in developing a plan for training, retraining and improving vocational skills to maintain jobs for employees according to regulations.

The maximum support level is 1,500,000 VND/employee/month and the maximum support period is 06 months.

Dossier of request for support shall be submitted from July 1, 2021 to the end of June 30, 2022

By: Law Library

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