Social insurance obligation payments to be delayed due to Covid-19

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung told Tuoi Tre newspaper on March 20 that the ministry has suggested a plan to the prime minister which includes policies to support virus-hit businesses.

Specifically, employees temporarily laid off work, companies having over 50% of employees facing temporary layoffs, and other firms impacted by Covid-19, which is associated with the coronavirus, can delay their payments for social insurance benefits, such as retirement and death.

The ministry also proposed the Government and the Standing Committee of the National Assembly consider applying the payment delay to all businesses throughout the country, the minister said.

If the proposal is approved, it will benefit up to three million people and 200,000 companies, according to Minister Dung.

In addition, affected employees will be exempt from unemployment insurance payments between March and December, according to the plan.

Meanwhile, the unemployment insurance fund will be tapped for training, improving labor skills, and supporting businesses to encourage and retain workers.

Companies suffering from financial problems will receive assistance to pay salaries to their employees who had to temporarily stop working as a result of the spread of Covid-19.

Further, the ministry suggested that authorities offer loans to affected businesses so they can pay salaries, insurance benefits and other allowances to workers being forced to leave their jobs temporarily.

Currently, over 15% of companies have had to scale down their businesses due to the impact of the pandemic. As a result, the number of employees temporarily losing their jobs or having their working hours reduced has soared.

Last month, over 47,000 people submitted applications to receive unemployment benefits, up a staggering 60% month-on-month and 70% over the same period last year.