The fourth wave of the Covid-19 pandemic driven by the Delta variant has caused dark patches which spread rapidly in the panorama of the enterprise sector. In this fierce war, the State has been giving close attention to the enterprises which have suffered damages and losses during the pandemic. In particular, on 1 July 2021, competent authorities issued Resolution 68/NQ-CP on certain policies to support employees and employers facing difficulties (“Resolution 68”) and Circular 47/2021/TT-BTC regulating the collection rate of a number of fees and charges to alleviate difficulties for these entities (“Circular 47”).
The following provisions are the note-worthy contents from the two policies to support those affected by the pandemic, which enterprises should pay attention to:
Reduction of the amount of fees and charges under Circular 47
The Ministry of Finance has extended the period of reduction in 30 fees and charges to support and alleviate difficulties for enterprises, as well as ensure the dual target of both containing the epidemic while boosting economic recovery. Circular 47 offers a variety of high-reduction amounts, such as:
The reduction period will run from 1 July 2021 till 31 December 2021.
Execution of the enterprise support package under Resolution 68
In the context of a prolonged pandemic, the practicality and “open procedure” are emphasized in Resolution 68, to ensure that the support package reaches the enterprises swiftly, thereby increasing potential and resistance to the future:
- To be exempted from payment of labor accident and occupational disease insurance: for a period of 12 months (from 1 July 2021 to 30 June 2022), a premium rate of 0% of the salary fund will be applied, allowing enterprises to assist this amount for employees to prevent the pandemic;
- Suspension of contribution into the pension and death gratuity fund: enterprises that have fully paid social insurance premiums or are temporarily suspending contributions until the end of April 2021 but have been affected by the pandemic, resulting in a reduction of at least 15% of employees who have contributed to social insurance (including the employees who stop working, whose employment contracts are being suspended, and who are on unpaid leave) are entitled to temporarily suspend contribution the mentioned fund for 06 months from the time of filling applications;
- To be assisted in providing training to maintain jobs for employees: applying to enterprises that have fully paid unemployment insurance premiums for employees for a full year or more, undergo a change in the technological structure in accordance with the Labor Code, suffer a decrease in revenue of 10% or more in the previous quarter and submit the support applications between 1 July 2021 and 30 June 2022;
- Being entitled to take out loans at 0% interest rate to pay wage: from the Bank for Social Policies at 0% interest rate of and without having to provide loan security so that the enterprises can (i) pay the employees, who stop working have participated in compulsory social insurance; (ii) pay wages for production recovery (available from 1 May 2021 till the end of 31 March 2022).