Source: Socialist Republic of Vietnam
Deputy Director General of Vietnam Social Security Le Hung Son talked about this issue
Q: What are the differences between the aid package for employees and employers under the Government’s Resolution No.116/NQ-CP and the package that has been implemented under the Government’s Resolution No.68?
A: The relief package for employees and employers participating in unemployment insurance shows the Party’s and State’s great attention to the lives of employees who are facing difficulties due to COVID-19 pandemic.
The package also featured the humanity of the unemployment insurance policy as well as the assurance for the principles of risk sharing, contribution and benefit combined with the principle of fairness.
Along with support policies from other aid packages launched by the Government, this package will help employees and employers overcome difficulties and stabilise their lives and production. Notably, the enterprises will have the opportunity to create jobs and income for employees.
Beneficiaries are also only focused on businesses that are paying unemployment insurance for their employees; labourers who are participating in the unemployment insurance as of September 30, 2021 (except for state agencies, armed forces, political organisations, socio-political organisations and public non-business units that received recurrent expenditures from State budget); and employees who have reserved their participation time from January 1, 2020, to September 30, 2021, when COVID-19 pandemic hit the country.
Q: How are the procedures for enjoying this aid package?
A: Under the direction of the National Assembly, Government and relevant ministries, the Vietnam Social Security has thoroughly grasped the spirit of “ensuring the implementation of steps to support workers and businesses in the simplest, most convenient, fastest and most exact manner”.
As many as 38,000 employers will receive a reduction in contribution to the Unemployment Insurance Fund from 1% to 0% for a period of 12 months (from October 1, 2021 to September 30, 2022) without arising administrative procedures. For 13 million employees, social insurance agencies will define the beneficiaries of the aid packages by the identification number of participants to the unemployment insurance and the time for participation in unemployment insurance based on existing information technology data.
Deputy Director General of Vietnam Social Security Le Hung Son
Q: How will the reduction of contribution rate to unemployment insurance for employers from 1% to 0% impact businesses?
A: With 38,000 businesses enjoying the reduction of contribution rate to the unemployment insurance fund within 12 months, the total amount is expected to reach over VND8 trillion.
With this reduced amount, enterprises will have more funds for epidemic prevention and control measures for the employees at the workplace and for their investment into production and business, thus contributing to creating jobs and stable income for workers. Enterprises are like trees. If they are well taken care of, they will produce “sweet fruits” for both them and their workers.
Q: It can be seen that this policy has not been regulated in the Employment Law 2013. Before the Government issued this resolution, the National Assembly Standing Committee issued Resolution No.03/2021/UBTVQH15 on promulgating policies to support employees and employers affected by COVID-19 pandemic from the Unemployment Insurance Fund. How do you evaluate these resolutions?
A: First of all, regarding the Party’s views on social security policy at the 13th National Party Congress and Resolution No.30 of the first session of the 15th National Assembly, in necessary and urgent situations, it is possible to propose policies that are not included in the regulations but are suitable for the epidemic situation and people’s interests.
I saw that when the authorities proposed aid for employees and employers severely affected by COVID-19 pandemic to the Government and the National Assembly, the policies were resolved very quickly and the interests of the people and employees were put first.
Q: Currently, the balance of Unemployment Insurance Fund is nearly VND90 trillion. Will the allocated VND38 trillion for the aid package affect the safety and long-term operation of the Fund?
A: For a support policy with such a large number of beneficiaries (nearly 13 million employees and 38,000 enterprises), it is difficult to ensure both progress and quality if there is not any information technology database.
However, the current information technology platform of Vietnam Social Security, is an effective tool to ensure the progress and quality of the payment of this package.
The General Director of Vietnam Social Security has directed professional units as well as local social security agencies to prepare data sources to identify beneficiaries and benefit rates as well as human resources and funding sources to serve the implementation and payment of support policies.
However, the certain difficulty is that the about 2.5 million employees who have seen their labour contracts temporarily suspended (from January 1, 2020 to September 30, 2021) and are reserving their time of participation in insurance policy are scattered across many localities. Therefore, the joint participation from media agencies and authorities in localities in disseminating and encouraging employees who are eligible for support to proactively come to the provincial and district social insurance agencies is very important. This is a decisive factor for the on-schedule implementation of the relief package.
Thank you very much for your interview!
According to statistics, there are currently about 15 million participants in unemployment insurance, including around two million who are not eligible to enjoy this aid package and nearly 13 million others and 38,000 employers who are entitled to the support.
Employees, who are currently participating in unemployment insurance through their enterprises, will receive support payments through their personal bank accounts. For people who cannot open personal accounts, the social security agencies will give payments through their enterprises.
For employees who have reserved the time to participate in unemployment insurance from January 1, 2020, until now, those who have stopped working or had their labour contracts temporarily suspended will be covered by the social insurance agencies in provinces and districts where they are living, regardless of administrative boundaries.