The Government expands the subjects receiving support due to the impact of Covid-19

On October 23, an online conference was held in Hanoi to train on the implementation of lending to employers to pay for workers' severance pay. Attending at Nghe An were representatives of the Social Policy Bank, the Provincial Fatherland Front Committee, the Department of Labor, Invalids and Social Affairs and authorized socio-political organizations.

At the conference, delegates were informed of some main contents surrounding Resolution No. 154/NQ-CP dated October 19, 2020 of the Government on amending and supplementing Resolution No. 42/NQ-CP dated April 9, 2020 on measures to support people facing difficulties due to the Covid-19 pandemic.

Online conferenceTraining on implementation of lending to employers to pay for workers' suspension of work at Nghe An bridgeheadPhoto: Thu Huyen

Accordingly,workersEmployees working under a labor contract must agree to temporarily suspend the performance of the labor contract, take unpaid leave for 01 month or more due to enterprises, private educational institutions, public educational institutions that self-insure regular expenses at preschool, kindergarten, primary, middle school, high school levels facing difficulties due to the Covid-19 pandemic, have no revenue or no financial resources to pay salaries, will be supported at a rate of 1,800,000 VND/person/month.

The support period is based on the actual time of suspension of labor contracts and unpaid leave, monthly depending on the actual situation of the epidemic, from April 1, 2020 and not more than 3 months.

Thus, the newly issued Resolution No. 154/NQ-CP has expanded support for employees at non-public educational institutions, private educational institutions, and public educational institutions that self-insure regular expenses at preschool, kindergarten, primary, middle school, and high school levels who must temporarily suspend the performance of their labor contracts or take unpaid leave for 01 month or more due toCovid-19 pandemic.

Textiles and garments are a sector that attracts many workers. In the photo: Garment production at the industrial park in Dien Chau. Photo: Thu Huyen

Regarding the content of supporting employers to borrow to pay severance pay for employees, the newly issued Resolution 154/NQ-CP removes the condition of "having paid in advance at least 50% of severance pay to employees according to Clause 3, Article 98 of the Labor Code".

Employers whose revenue in the first quarter of 2020 decreased by 20% or more compared to the fourth quarter of 2019 or whose revenue in the quarter immediately preceding the time of requesting consideration for reduction by 20% or more compared to the same period in 2019 are entitled to borrow without collateral up to 50% of the regional minimum wage to pay suspension wages to employees as prescribed in Clause 3, Article 98 of the Labor Code for the period from April to December 2020 according to the actual salary payment time but not exceeding 3 months with a loan interest rate of 0%, maximum loan term of 12 months at the Vietnam Bank for Social Policies.

The employer directly prepares the loan application, self-declare, and is responsible before the law for the accuracy and honesty of the number of employees who have stopped working, the data determining the revenue that meets the loan conditions, and sends it to the Social Policy Bank to enjoy the support policy according to regulations.

Mr. Tran Khac Hung - Director of the People's Credit Fund, Nghe An branch

In addition, Resolution 154/NQ-CP also amends the content of support for temporary suspension of pension and death fund contributions.

Corresponding to the above amendments, the Prime Minister also issued Decision 32/2020/QD-TTg dated October 19, 2020 amending and supplementing a number of articles of Decision No. 15/2020/QD-TTg dated April 24, 2020 regulating the implementation of support policies for people facing difficulties due to the Covid-19 pandemic.

The records, procedures and implementation processes are also revised./.