The Government’s social insurance and labour concessional
measures issued to support individuals and enterprises affected
by Covid-19 pandemic
01
Following the Directive No. 11/CT-TTg dated 4 March 2020, the Government recently issued Resolution
42/2020/NQ-CP on solutions to support individuals and enterprises negatively impacted by the Covid-19
pandemic. The Ministry of Labor - Invalids and Social Affairs (“MOLISA”) and the General Confederation of
Labor also issued official guidance on the settlement of compensation and benefits for employees during the
work suspension period and the deferral of trade union contribution for enterprises who are affected by the
Covid-19 pandemic. Some notable support measures to enterprises and employees are summarised below.
1. Financial support from the Government under Resolution 42
• Employees who are subject to suspension of their labor contract or unpaid leave for a period of one month
or more will be entitled to cash support of VND1,800,000/person/month. The support will take effect
from 1 April 2020 for a maximum of three months.
• Employees whose contracts are terminated and do not qualify to claim for unemployment insurance
allowance and non-contractual individuals who lose their jobs, are entitled to VND1,000,000/person/
month. The support depends on the actual Covid-19 circumstance and is granted for a maximum of three
months from April 2020.
• Employers who are in financial difficulties and have paid at least 50% of the work suspension salary for
employees between April and June 2020 will be entitled to an interest free loan without collateral for up to
12 months from Vietnam Bank for Social Policies equivalent to the amount required to pay the remaining
salary to their employees. The loan amount is based on the actual salary payable to the employees but
capped at 50% of the regional minimum wage