New points in salary payment for workers

Loan conditions are relaxed

According to the provisions of Resolution 154, employees working under a labor contract must agree to temporarily suspend the performance of the labor contract, take unpaid leave for 1 month or more due to enterprises, private educational institutions, public educational institutions that self-insure regular expenses at preschool, kindergarten, primary, secondary and 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 exceeding 3 months.
Thus, the newly issued Resolution No. 154/NQ-CP has expanded support for employees at non-public, private educational institutions, and public educational institutions that self-insure regular expenses at preschool, kindergarten, primary, secondary and high school levels who have to temporarily suspend the performance of their labor contracts or take unpaid leave for 1 month or more due to the Covid-19 pandemic.

Textile workers in Dien Chau. Photo: Thu Huyen

About support for employerssalary loanRegarding the suspension of work for employees, the newly issued Resolution No. 154/NQ-CP removes the condition of "having paid in advance at least 50% of the salary for the suspension of work to employees according to Clause 3, Article 98 of the Labor Code".

Employers directly prepare loan applications, self-declare, and are legally responsible for the accuracy and honesty of the number of employees who have stopped working, the data determining revenue that meets the loan conditions, and send it to the Social Policy Bank to enjoy support policies according to regulations. In addition, Resolution No. 154/NQ-CP also amends the content of support for temporary suspension of contributions to pension and death funds.

Textile industry is an industry that creates many jobs for workers. Photo: Thu Huyen

Corresponding to the above amendments, the Prime Minister also issued Decision No. 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.

Many new points in loan approval and disbursement

In the spirit of the Government's direction, the General DirectorSocial Policy Bankissued Document No. 5446/HD-NHCS dated October 20, 2020 guiding the lending procedures for employers to pay wages for employees during suspension of work.

Social Policy Bank trains on lending content according to new regulations. Photo: Thu Huyen

About loan conditions:Employers are considered for loans when meeting the following conditions: Having employees participating in compulsory social insurance who must stop working for 1 consecutive month or more during the period from April 1, 2020 to December 31, 2020. Having revenue in the first quarter of 2020 decreased by 20% or more compared to the fourth quarter of 2019, or revenue in the quarter immediately preceding the time of consideration decreased by 20% or more compared to the same period in 2019. Having no bad debts at credit institutions or foreign bank branches as of December 31, 2019.

About loan purpose:The loan is used by customers to pay severance pay for workers who have been laid off due to the impact of the Covid-19 pandemic.
About loan amount, interest rate, loan term:The maximum loan amount for 1 month for 1 customer is equal to 50% of the regional minimum wage (x) the number of workers who have been laid off and each customer can borrow capital for no more than 3 months from April 1, 2020 to December 31, 2020. Loan interest rate: 0%/year. Overdue debt interest rate: 12%/year. The loan term is agreed upon by the Social Policy Bank where the loan is made and the customer, but not more than 12 months from the date of disbursement of the first loan. The customer does not have to provide loan security.CSXH Bank lends directly to customers.

No later than the 5th of each month, customers must submit loan applications to the Social Policy Bank where the loan is provided. Within 5 working days from the date of receipt of complete loan applications, the Social Policy Bank will approve the loan and notify the customer of the approval result. In case the conditions for loan approval are not met, the Social Policy Bank will notify the customer stating the reason for rejection.

Nghi Loc Policy Bank transaction office disburses capital. Photo: Viet Phuong

First loan application includes:
a) Request for loan to pay salary for employees during suspension of work (Form No. 11a, issued with Decision No. 32/2020/QD-TTg).
b) List of employees who have stopped working due to the impact of the Covid-19 epidemic (Form No. 11b, issued with Decision No. 32/2020/QD-TTg).
c) Copies of documents appropriate to the type of activity:
- Certificate of business registration; Certificate of registration of Cooperative, business household; Decision on establishment, Decision on permission to establish of competent State agency (if any).
- Business license, Operating license, Practice certificate (for conditional business lines or those prescribed by law); Investment license, Investment certificate (for enterprises established by foreign investors).
- Valid ID card, Citizen identification card, Passport of the customer or the customer's legal representative.
- Document of appointment or assignment of the head of the legal entity according to the provisions of the organization's Charter or Decision of the competent State agency.
d) A copy of the client's agreement with the employee on the suspension of work due to the impact of the Covid-19 pandemic.
d) Power of attorney (if any).