Resolution 42/NQ-CP 2020 assistance for people affected by Covid-19 pandemic

RESOLUTION 42/NQ-CP 2020

ASSISTANCE FOR PEOPLE AFFECTED BY COVID-19 PANDEMIC

THE GOVERNMENT

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 on Working Regulations of the Government;

Pursuant to Notice No. 3546/TB-TTKQH dated April 09, 2020 of the Secretary General of National Assembly on the conclusion of the Meeting of Standing Committee of the National Assembly;

By consensus of the Government during its periodic meeting of March 2020 and at the request of the Minister of Planning and Investment in Document No. 2344/TTr-BKHDT dated April 09, 2020,

RESOLUTION 42/NQ-CP DECIDES ASSISTANCE FOR PEOPLE AFFECTED BY COVID-19 PANDEMIC:

Covid-19 pandemic is still developing in an unpredictable manner, spreading in numerous countries and territories, and seriously affecting global economy as well as major partners of Vietnam.

In Vietnam, Covid-19 pandemic is affecting many economic and social aspects; people are facing difficulties; numerous enterprises, household businesses and cooperatives have to suspend business operation, scale down or just barely sustain operation. This causes short-term increase in unemployment and redundancy. The situation can worsen if the pandemic still persists.

In order to assist the people and workers in overcoming difficulties and thus contribute to social stabilization, the Government promulgates a Resolution on provision of assistance for people affected by Covid-19.

I. PRINCIPLES

1. Assistance shall be provided for people who suffer from significant decrease in income and have difficulty living at subsistence level; people who are laid off or cannot find a job because of Covid-19 pandemic and thus having difficulties maintaining sufficiency; certain groups of beneficiaries of incentive and social protection policies during the pandemic.

2. The State, enterprises and society are all responsible for assisting workers overcoming difficulties.

3. Assistance shall be provided for eligible beneficiaries in an open and transparent manner; prevent abuse of these assistance policies. A person who is eligible for more than one assistance policy specified in this Resolution will receive the most favorable policy. Eligible beneficiaries may voluntarily refuse to receive assistance.

4. State budget will be the primary source of funding for provision of assistance in this Resolution.

a) Provinces and centrally affiliated cities (hereinafter referred to as “provinces”) that contribute over 50% of their revenues to central government budget will cover the cost of assistance themselves. Central government budget shall provide funding for other provinces as follows:

– 70% of the total amount of assistance provided according to this Resolution for mountainous provinces and provinces in Tay Nguyen region.

– 50% of the total amount of assistance provided according to this Resolution for provinces that receive funding from central government budget (except mountainous provinces and provinces in Tay Nguyen region).

– 30% of the total amount of assistance provided according to this Resolution for provinces that contribute under 50% of their revenues to central government budget.

b) The People’s Committees of provinces, districts and communes shall use 50% of their backup funds, 70% of financial reserve funds and remaining wage reform funds to provide assistance specified in this Resolution.

II. ASSISTANCE POLICIES

1. A worker who has his/her employment contract suspended or has to take unpaid leave for at least 01 month because his/her employer does not have adequate fund to pay wages due to Covid-19 will receive 1.800.000 per month for up to 3 months beginning from April 01, 2020. The assistance duration varies according to the duration of employment contract suspension or unpaid leave and the pandemic situation.

2. An employer who is facing financial difficulties and have paid at least 50% of suspension allowance for their employees in accordance with Clause 3 Article 98 of the Labor Code during the period from April to June 2020 may apply for an unsecured loan that is worth up to 50% of total region-based minimum wages of suspended employees over the suspension period (but not exceeding 3 months) at an interest rate of 0% with a loan term of up to 12 months from a Vietnam Bank for Social Policies. The loan shall be used for payment of the unpaid wage and disbursed monthly to pay the suspended employees.

3. A household business that earns an annual revenue of under 100 millions VND/year and has to suspend business operation from April 01, 2020 will receive 1.000.000 per month for up to 3 months according to the pandemic situation.

4. A worker who has his/her employment contract terminated but is not eligible for unemployment benefit; a worker who does not have a employment contract and is laid off will receive 1.000.000 per month for up to 3 months according to the pandemic situation. This will apply from April to June 2020.

5. A person with meritorious services to the revolution who is receiving monthly benefits will receive an additional amount of 500.000 per month for 3 months from April to June 2020. This will be paid in a lump sum.

6. A social protection beneficiary who is receiving monthly benefits will receive an additional amount of 500.000 per month for 3 months from April to June 2020. This will be paid in a lump sum.

7. A poor or near-poor household according to the national poverty standards by December 31, 2019 will receive 500.000 per person per month for 3 months from April to June 2020. This will be paid in a lump sum.

III. OTHER POLICIES

1. In case an employer has to lay off at least 50% of the number of employees who have social insurance before the epidemic declaration (including employees that are suspended, have their employment contracts suspended or take unpaid leave) because of Covid-19 pandemic, the employer and their employees may suspend contribution to the pension fund and death benefit fund for up to 12 months.

2. Unemployed people may send applications for unemployment benefit by post and receive monthly job notices by email, fax or post, etc. from April 01, 2020 until the end of the epidemic is declared without having to obtain an epidemic confirmation from the People’s Committee of the commune.

IV. IMPLEMENTATION

1. The Ministry of Labor, War Invalid and Social Affairs shall:

a) Take charge and cooperate with relevant Ministries and agencies in instructing local governments and social security authorities to uniformly provide assistance in accordance with II.1, 3, 4, 5, 6, 7 and III.1 of this Resolution; ensure eligible beneficiaries receive the assistance in a timely and transparent manner according to the principles in Section I of this Resolution.

b) Take charge and cooperate with the Ministry of Finance, the State bank of Vietnam, Vietnam Bank for Social Policies and relevant agencies in drafting a Decision of the Prime Minister to allow Vietnam Bank for Social Policies to grant loans to employers for paying suspended employees according to II.2 of this Resolution; submit a report to the Prime Minister in April 2020.

c) Take charge and cooperate with relevant agencies in providing guidance for local governments and social security authorities on suspension of contribution to the pension fund and death benefit funds according to III.1 of this Resolution.

d) Report the implementation of this Resolution during monthly meeting of the Government; propose to the PM solutions for difficulties that arise during the implementation

2. The Ministry of Finance shall:

a) Cooperate with the Ministry of Labor, War Invalid and Social Affairs, the Ministry of Planning and Investment and the State Bank of Vietnam in providing the assistance specified in II.2 and II.3 of this Resolution.

b) Provide adequate funding from the central government budget for provision of the assistance specified in this Resolution.

c) Pursuant to this Resolution and relevant laws, in consideration of expenditures of provincial governments in reality (confirmed by State Treasury), provide funding from central government budget for each provincial governments; submit period reports to the Prime Minister.

3. State bank of Vietnam shall:

b) Take charge and cooperate with the Ministry of Labor, War Invalid and Social Affairs, the Ministry of Finance, the Ministry of Planning and Investment, Vietnam Social Security and relevant agencies in instructing and providing a refinancing loan of approximately 16.000 billion VND at an interest rate of 0%, which will be loaned to employer for paying their employees according to II.2 of this Resolution.

b) Use its provision from surplus to settle the refinancing loan mentioned in this Resolution if it is overdue for at least 3 years.

4. Vietnam Social Security shall compile a list of eligible beneficiaries specified in III.1 of this Resolution; cooperate with relevant agencies in implementation; ensure timeliness, transparency, eligibility of beneficiaries and prevent abuse of these policies.

5. The People’s Committees of provinces shall:

a) Utilize their own resources as prescribed in I of this Resolution; submit a report on implementation to the Ministry of Finance for consolidation and proposing to competent authorities for assistance.

b) Compile a list of eligible beneficiaries specified in II of this Resolution; cooperate with relevant agencies in providing assistance; ensure timeliness, transparency, eligibility of beneficiaries; prevent abuse of these policies, corruption and harassment.

c) Organize the implementation of this Resolution and provide assistance for the beneficiaries specified in II.4 in a timely manner.

6. The Ministry of Information and Communications shall take charge and cooperate with the Central Propaganda Committee, press agencies, other Ministries, central and local authorities in disseminate this Resolution.

7. Ministries, central and local authorities shall disseminate this Resolution; have specific implementation plans; instruct agencies, unit, officials, public employees and employees under their management to perform the tasks specified herein; provide guidance for enterprises and the people on the assistance for people affected by Covid-19 pandemic; cooperate with relevant Ministries and agencies in resolving difficulties; submit monthly reports and proposals to the Ministry of Labor, War Invalid and Social Affairs before the 20^th every month.

The Ministry of Labor, War Invalid and Social Affairs shall submit a consolidated report to the Government and the PM during periodic meetings.

8. Ministers, Heads of ministerial agencies and governmental agencies, Presidents of the People’s Committees of provinces, President of the Member assembly , General Directors of state-owned corporations are directly responsible to the Government and the PM for the implementation of this Decision./.