In light of difficulties caused by the 4th wave of COVID-19 the government issued Resolution 116 with financial support packages for employees and employers. Certain conditions need to be met in order to qualify for this support.

29 Sep 2021



Due to the severe situation caused by the COVID-19 pandemic, the Government issued Resolution No. 116/NQ-CP (Resolution 116) on 24 September 2021 to implement a policy to support employers and employees affected by the pandemic using the Unemployment Insurance Fund.

This policy will assist employers and employees in sustaining the labour supply chain and using the national employment insurance policy most effectively.


1. Criteria for Financial Support for Employees

Employees need to meet some criteria to qualify for financial support. An employee is only eligible for financial support if they

  • participate in unemployment insurance as of 30 September 2021; or

  • no longer participate in unemployment insurance due to termination of their labour contracts from 1 January 2020 until the end of September 2021, excluding employees who receive a monthly pension


2. Height of Financial Support for Employees

The support amount will be based on an employee's unemployment insurance contribution period (Contribution Period). Depending on the Contribution Period, the following amounts apply per person:

  • If under 12 months: VND 1,800,000

  • If from 12 to less than 60 months: VND 2,100,000

  • If from 60 to less than 84 months: VND 2,400,000;

  • If from 84 to less than 108 months: VND 2,650,000;

  • If from 108 to less than 132 months: VND 2,900,000; or

  • If from 132 months or more: VND 3,300,000.

3. Financial Support for Employers

Foreign and local enterprises being an employer and that contributed to the unemployment insurance before 1 October 2021, will be entitled to a reduced contribution to the Unemployment Insurance Fund. From 1 October 2021 until the end of September 2022, employers will have to contribute at a 0% rate, meaning that no contribution to the fund needs to be made, for employees participating in such insurance. It currently is 1%.


For more information, please contact:

 An Tran / Senior Associate  


Cuong Ta / Junior Associate

© 2021 ACS Legal Vietnam Company Limited – All rights reserved

This legal update is not an advice and should not be treated as such.

Download pdf: Government's Resolution 116 to Support Employers and Employees

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