Unprecedented welfare packages launched in 2021

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A number of welfare packages worth trillions of dong were launched to help workers, employers, Covid-19 patients and others during the pandemic.

Unprecedented welfare packages launched in 2021

Government Resolution 68, VND26 trillion

On July 1, the Government released Resolution 68 with the support package worth VND26 trillion from the State budget o support 12 groups of workers and employers, including freelancers.

The reports of labor departments from 63 cities and provinces showed that as of November 25, the total expenses to implement the resolution had reached VND28.45 trillion, delivered to 28.27 million subjects, including 377,431 employers, 27.9 million workers and others.

HCM City gave support to 11.2 million subjects, totaling VND12.03 trillion. Some localities reported high expenditures, including Binh Duong (VND2.64 trillion), Hanoi (VND2.055 trillion), Dong Nai (VND2.03 trillion), Ba Ria – Vung Tau (VND1.473 trillion), Bac Giang (VND706 billion) and Long An (627 billion).

The total expenditures to give support under three insurance policies was VND5.39 trillion, addressing 375,820 employers and 11.391 billion workers.

Vietnam Social Security (VSS) has reviewed and notified 375,000 employers that they entitled to a reduction in insurance premiums for occupational accidents and disease from July 2021 to the end of June 2022, totaling VND4.32 trillion.

On September 24, the Government issued Resolution 116 on launching a support package worth VND38 trillion targeting employers and workers affected by Covid-19, sourced from the unemployment insurance fund.

The estimated reductions from October 2021 to September 2022 amounted to VND7.595 trillion.

Resolution 116, VND38 trillion

VSS checked and sent the lists of workers subject to the support package to 357,861 employers, and 1,868,907 workers received the support.

The number of workers who stopped paying unemployment insurance premiums but still asked for support was 1,289,332. As many as 28,038 workers continued paying unemployment insurance, but voluntarily refused support.

The total amount paid was VND28,798 billion for 12,149,585 workers.

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung said that Resolutions 68 and 116 have helped people overcome difficulties. The policies not only target workers but also cover disadvantaged people, including older people, orphans and the disabled.

On October 28, 2021, the Vietnam Labor Federation (VLF) announced a plan to give financial support to workers to celebrate Tet. A budget of VND2.4 trillion has been reserved for 8 million laborers (VND 300,000 each).

A report showed that the number of officially employed workers was 15.1 million people in the third quarter of the year, down 468,900 people compared to the previous quarter and 657,000 compared with the same period last year.

HCM City: VND9.8 trillion, 3 campaigns

The city has launched three support packages in cash from the budget and delivered 2 million welfare bags from sources mobilized by the Fatherland Front.

The first support campaign was organized in July 2021, under which VND886 billion was delivered to 366,000 freelancers, more than 56,000 workers who had to take unpaid leave, and 199 workers who became unemployed but did not meet the requirements to receive unemployment benefits.

The city also gave support to 5,900 business households which had to suspend their operation and more than 17,000 merchants at traditional markets.

The support of VND50,000/head/day, applied to lockdown days, was given to freelancers who lost jobs or had revenue decreasing sharply because of social distancing, workers residing legally in the city who did not have income, and workers who had income of below VND4 million a month.

Petty merchants at traditional markets (first-class market) received VND300,000 a month. The support was VND210,000 a month for second-class markets, and VND150,000 for third-class ones.

The business households which had to stop operation in the areas that imposed lockdown in accordance with the Prime Minister’s Direction 16 received another support of VND2 million each.

According to HCM City leaders, the complicated developments of the pandemic and long lockdown period caused big difficulties. The municipal authorities decided to launch a second support campaign, under which VND900 billion was budgeted to support three groups of people, implemented on August 5-10.

The second package targeted poor workers and those who were not subject to the first package. Everyone received VND1.5 million each. About 250,000 people got support.

On September 23, the HCM City People’s Council once again approved a resolution on supporting people in difficulties under which each individual received VND1 million. There were five groups of people covered by the policy, with the total number of 7.3 million.

To date, support has been delivered to 6.1 million beneficiaries, and the delivery is continuing in some districts.

Since August 4, 2021, the city’s welfare center has delivered 2,587,095 welfare bags to 22 districts and Thu Duc City.

Nguyen Van Lam, Deputy Director of HCM City Department of Labor, War Invalids and Social Affairs, said the total spending in three campaigns to support people in difficulties is VND9.8 trillion with 8.4 million beneficiaries. More than 88 percent of the third package has been disbursed.

Gia Van – Ho Van

Statistics from the Ministry of Labour, Invalids and Social Affairs showed that 28.2 million people across the country have been affected by COVID-19, including 4.7 people losing jobs, accounting for 16.5 percent.

HCM City Chairman Phan Van Mai said there are about 2 million households with 5.3 million people in need of welfare support in HCM City.

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