Resolution 126: Support business households with 3 million VND, employees with 1,000,000 VND – 3,710,000 VND, businesses with 0% interest rate loans, temporary suspension of contributions to the Pension & Death Fund… See details.
Resolution 126/NQ-CP dated October 8, 2021 amended, supplemented, and expanded the cases where employees who have stopped working are supported according to Resolution 68/NQ-CP dated July 1, 2021. In addition, Resolution 126/NQ-CP also amended and supplemented support policies for business households and employers such as temporarily suspending contributions to the Pension and Death Fund, 0% interest rate loans, etc. You can refer to the details in this article.
Employees and employers are allowed to temporarily stop paying into the Pension and Death Fund for 6 months (from the time of submitting the application) in the following cases:
- Employers have paid enough social insurance or due to the Covid-19 pandemic, they are temporarily suspending contributions to the Pension and Death Fund until the end of January 2021. For that reason, employers must reduce the number of employees participating in social insurance by 10% or more compared to January 2021 (including employees who have stopped working, suspended labor contracts and agreed to take unpaid leave);
- Employers and employees who have been approved to temporarily suspend contributions to the Pension and Death Fund under Resolution 42/NQ-CP dated April 9, 2020 and Resolution 154/NQ-CP dated October 19, 2020 will continue to be resolved under Resolution 126/NQ-CP if they meet the conditions. However, the total period of suspension of contributions to the Pension and Death Fund shall not exceed 12 months.
➜ Compared to Resolution 68/NQ-CP, Resolution 126/NQ-CP has changed the reduction rate of employees participating in social insurance from 15% to 10% to expand the beneficiaries of support policies.
One-time support for workers affected by Covid-19
➤ One-time support of 1,000,000 VND/person for the following cases:
- Employees working under labor contracts are suspended from work according to Clause 3, Article 99 of the Labor Code;
- Employees who are participating in compulsory social insurance up to the time immediately before stopping work and are in one of the following cases:
>> Workers who must be treated for Covid-19, during medical isolation, in locked-down areas, and cannot move to their workplace according to Directive 16/CT-TTg;
>> Employers temporarily suspend operations at the request of state agencies for the purpose of preventing and fighting the Covid-19 epidemic;
>> Employers with headquarters and affiliated units in the area must implement measures to prevent and control the Covid-19 epidemic according to Directive 16/CT-TTg;
>> Employers must rearrange production and labor to prevent and fight the Covid-19 epidemic.
Note: Continuous suspension period of at least 14 days or more, from May 1, 2021 to December 31, 2021.
➤ One-time support of VND 1,855,000/person if the employee falls into the following cases:
- Employees working under a labor contract and participating in compulsory social insurance, calculated up to the time immediately before suspending the performance of the labor contract or taking unpaid leave;
- Employees have a time and starting point to suspend the performance of the labor contract, take unpaid leave during the term of the labor contract, at least 15 consecutive days, from May 1, 2021 to December 31, 2021. At the same time, they fall into one of the following cases:
>> Workers who are being treated for Covid-19, during medical isolation, in locked-down areas, and cannot travel to work due to requests from state agencies for the purpose of preventing and fighting Covid-19;
>> Employers temporarily suspend operations at the request of state agencies for the purpose of preventing and fighting the Covid-19 epidemic;
>> Employers with headquarters and affiliated units in the area must implement measures to prevent and control the Covid-19 epidemic according to Directive 16/CT-TTg;
>> Employers must rearrange production and labor to prevent and fight the Covid-19 epidemic.
➤ One-time support of VND 3,710,000/person if the employee falls into the following cases:
- Employees working under labor contracts and participating in compulsory social insurance but must terminate their labor contracts from May 1, 2021 to December 31, 2021;
- Employees have a time and starting point to suspend the performance of the labor contract, take unpaid leave during the term of the labor contract from 1 month or more;
- At the same time, employees are not eligible for unemployment benefits but fall into one of the following cases:
>> Workers must be quarantined in locked-down areas and cannot travel to their workplace due to requests from state agencies for the purpose of preventing and fighting Covid-19;
>> Employers temporarily suspend operations at the request of state agencies for the purpose of preventing and fighting the Covid-19 epidemic;
>> Employers with headquarters and affiliated units in the area must implement measures to prevent and control the Covid-19 epidemic according to Directive 16/CT-TTg;
>> Employers must rearrange production and labor to prevent and fight the Covid-19 epidemic.
One-time support for businesses affected by Covid-19
➤ One-time support of VND 3,000,000/household if the business household has to stop operating at the request of the authorities or because the business location is in an area that is preventing and fighting the Covid-19 epidemic according to Directive 16/CT-TTg, in one of the following cases:
- Business households have business registration and are in the tax authority’s directory;
- Households engaged in agricultural, forestry, fishery and salt production;
- Other low-income businesses do not have to register for a business household such as: street vendors, snack vendors, itinerant traders, mobile businesses, seasonal businesses, service providers, etc.
Note : Business households must meet the condition of continuously suspending operations for at least 15 days, from May 1, 2021 to December 31, 2021.
➜ Compared to Resolution 68/NQ-CP, Resolution 126/NQ-CP has added and specifically regulated the subjects eligible for support of 3,000,000 VND.
Support businesses to borrow from banks to pay salaries with 0% interest rate
➤ Support 0% interest rate loan to pay salary for workers on leave
When paying severance pay to employees participating in compulsory social insurance who must stop working continuously for at least 15 days or more according to Clause 3, Article 99 of the Labor Code, from May 1, 2021 to March 31, 2022, the following support policies will be applied to employers:
- Get a loan from the Social Policy Bank with 0% interest rate;
- No need to take measures to secure loans to pay for severance pay;
- Maximum loan amount is equal to at least the regional wage for employees according to the actual pay period of suspension of work, up to 3 months.
- Loan term to pay salaries to employees who have stopped working due to the impact of Covid-19 is less than 12 months.
➤ Support 0% interest rate loan to pay salary to restore production
Employers are eligible for a 0% interest rate loan support policy at the Social Policy Bank to pay wages to restore production when they fall into one of the following cases:
- Must temporarily suspend operations at the request of state agencies to prevent and fight Covid-19;
- Headquarters and affiliated units in the area must stop operations to prevent and fight Covid-19 according to Directive 16/CT-TTg;
- Operating in the fields of transportation, aviation, tourism, accommodation services and sending Vietnamese workers to work abroad under contracts.
In addition to 0% interest rate loan support, employers also do not have to take measures to secure loans to pay salaries to employees.
Maximum loan amount is equal to the minimum regional salary for employees working under labor contracts and participating in mandatory social insurance, according to the actual salary payment period of up to 3 months.
Loan term under 12 months.
Note : Time from May 1, 2021 to March 31, 2022.
➜ Compared to Resolution 68/NQ-CP, Resolution 126/NQ-CP has removed the regulation that employers are not allowed to have bad debts. At the same time, Resolution 126/NQ-CP has also supplemented and expanded the subjects eligible for 0% interest bank loans for headquarters and dependent units (branches, representative offices, business locations) in the area implementing Directive 16/CT-TTg.
See also:
Workers who quit their jobs receive unemployment insurance according to Resolution 116 & Decision 28;
Enterprises receive support from the Unemployment Insurance Fund according to Resolution 116 & Decision 28.
Call us at 0909 709 915 (HCMC) or 0906 687 032 (Hanoi) for support.