Effective support "packages" to help businesses and employees

by NDO22 November 2021 Last updated at 16:38 PM

A worker at Vietnam Thai Nguyen Samsung Electronics Co., Ltd. (Photo:TRAN HAI)
A worker at Vietnam Thai Nguyen Samsung Electronics Co., Ltd. (Photo:TRAN HAI)

VTV.vn - Facing the impacts of the COVID-19 pandemic on the labour market, the Government's support packages to help employees and employers have clearly shown their effectiveness, helping businesses and employees overcome difficulties in the past.

In 2021, the fourth wave of COVID-19 has negatively affected tens of millions of workers. In the third quarter alone, workers were affected the most, with 4.7 million workers losing their jobs, 14.7 million workers taking a hiatus or temporarily suspending production and business; more than 10 million working hours reduced, or temporarily stopping work. As a result, their income decreased, workers' lives faced many difficulties and the rate of underemployment and unemployment increased. The underemployment rate in the third quarter was 4.46%, with more than 1.8 million people, an increase of 1.86% compared to the previous quarter. The unemployment rate among workers is 3.98% with more than 1.7 million people, an increase of more than 1.25% over the same period last year.

Effectiveness from welfare packages

Faced with that fact, the Government and Prime Minister quickly issued and implemented a number of policies to support employees and employers affected by the COVID-19 pandemic.

Sharing the results of the implementation of Resolution 68/NQ-CP of the Government on a number of policies to support employees facing difficulties due to the COVID-19 pandemic and Resolution 116/NQ-CP of the Government on supporting employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund, Deputy Minister of Labour, Invalids and Social Affairs Le Van Thanh said: Up to now, Resolution 116/NQ-CP has been deployed with a total cost of 27.24 trillion VND, supporting 27.62 million employees and employers. In which, there are three main groups of policies: Insurance group supports 5.38 trillion VND for 375,809 employers and 11.389 million employees. The group of support policies in cash has supported more than 15.64 million employees and employers, with a total budget of 21.11 trillion VND, including more than 13.35 million freelance workers and other specific careers throughout 58 provinces and cities are supported, with a total budget of more than 17.14 trillion VND. The group of support policies through lending has disbursed 479.5 billion VND, supporting 1,449 businesses to pay salaries for 209,280 employees.

Notably, up to now, 11,365 million employees have been supported in cash, with a total support amount of 27,230 billion VND (this package is expected to support 30 trillion VND) according to Resolution 116/NQ-CP and Decision 116/NQ-CP and Decision 28-NQ/TW of the Government and the Prime Minister. The reduction of unemployment insurance premiums for employers has been almost completed. The reduction of the contribution rate for more than 363,600 employers, equivalent to 9.68 million employees with a temporarily adjusted amount of 7,595 billion VND, has also been just about completed.

Businesses and labour benefits

Reviewing the Government's support packages to help employees and employers to overcome difficulties during the COVID-19 epidemic, head of the Institute for Workers and Trade Unions under the Vietnam General Confederation of Labour Vu Minh Tien said: through directly meeting workers and freelancers, it shows that the policies, of the Government at all levels and sectors, towards workers during the past two years of the pandemic are becoming more timely, more practical and more convenient.

According to Vu Minh Tien, the two recent support packages under Resolution 68/NQ-CP and Resolution 116/NQ-CP, especially the support package from unemployment insurance, all workers and businesses are very excited because of the timeliness and convenient procedures. Most workers and businesses have access to this package.

In addition, the Vietnam General Confederation of Labour also directed trade unions at all levels to directly listen to the thoughts and aspirations of employees, promptly detecting difficulties to reflect and propose to all levels and industries on measures to directly support workers in need, especially vulnerable workers such as pregnant females, migrant workers, young children, and workers who lost their jobs.

Chairman of the Board of Directors of the Vietnam National Textile and Garment Group, Le Tien Truong also said that the implementation of the Government's support packages was faster and more realistic. The implementation method is more reasonable, reducing the cost and time for approval. The construction of a mechanism based on unemployment insurance makes disbursement easier, ensuring fairness when only employees of enterprises that have fully paid unemployment insurance receive support.

In 2021, with Resolution 68/NQ-CP, the Vietnam National Textile and Garment Group received about 140 billion VND in support, accounting for 60% of the proposals. As for Resolution 116/NQ-CP on supporting those who pay unemployment insurance premiums, enterprises have received 340 billion VND out of 345 billion VND, equivalent to 95% of the proposals.

This is implemented quickly and is very easy and convenient because it only needs to be based on the number of months paying unemployment insurance premiums from the employees. The exemption and reduction of unemployment insurance premiums for businesses also help the National Textile and Garment Group to save 17 billion VND in two months of implementation and will reach 100 billion VND in 12 months.

According to Le Tien Truong, through these support packages, it is more important that employees can understand clearly when choosing an employer that fully participates in State policies, so that when they meet risks, they receive full support. Transparent businesses hope the labour market will move in this direction, avoiding competition with businesses that do not fulfil their responsibilities but have a cost advantage.

According to the Vietnam Social Security, by the end of November 16, support from the Unemployment Insurance Fund has been settled for 11,778,660 employees (including 10,993,009 people who are participating in unemployment insurance and 785,651 employees who have stopped participating in unemployment insurance), with a total support amount of 28.01 trillion VND.


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