Unemployment insurance fund benefits 9.67 million pandemic-hit workers

A total of 9.67 million workers affected by the Covid-19 pandemic have received assistance from the unemployment insurance fund, according to the Vietnam Social Security (VSS).

As of the end of November 5, over VND23.03 trillion (US$1 billion) in cash relief has been granted to more than nine million people currently enrolling in unemployment insurance and over 550,000 others who already stopped making contributions to the fund, the VSS said.

The relief is implemented in accordance with the Government’s Resolution No. 116/NQ-CP and the Prime Minister’s Decision No.28/QD-TTg on assistance for workers and employers hit by the Covid-19 pandemic.

Ho Chi Minh City saw the highest number of workers benefiting from the fund with 1.8 million workers, followed by Hanoi with 1.29 million, Dong Nai with more than 704,000, Binh Duong with over 596,500, and others.

Workers in the garment sector. Photo: Thao Tran

Do Ngoc Tho, head of the Insurance Policy Implementation Department under the VSS, said it is expected that Vietnam’s social insurance will have basically completed delivering the support to workers by November 15.

“Workers highly valued the social insurance agency for quickly implementing support policies under the unemployment insurance fund, with streamlined administrative procedures, increasing convenience for employees and contributing to reinforcing people's trust in the social insurance agency”, Tho said.

Around 15.55 million people across Vietnam enrolled in social insurance as of November 5, an increase of one million people year-on-year, the VSS said, adding that the country also has 84.37 million people subscribing to health insurance, an increase of 837,000 people compared to the previous year.

An aid package worth VND30 trillion, allocated from the unemployment insurance fund, is being delivered based on Resolution No.116/NQ-CP/2021 on the implementation of the policy to support employees and employers affected by the Covid-19 pandemic of the government.

Assessing this policy, Director of the Hanoi Social Security Agency Nguyen Duc Hoa said that the aid package will help employers reduce their costs, adapt to the new normal, maintain production and business activities and create jobs for workers.

Employees in Hanoi carry out procedures to receive unemployment benefits. Photo: Thuy Truc

"The policy will promote the role of unemployment insurance as solid support for both employees and employers. It also demonstrates the nature, role, and significance of unemployment insurance in the economy and labor market. It can be said that unemployment insurance is one of the social security policies with the most positive impact on both the labor market and the economy," Hoa told The Hanoi Times.

He added that in order for laborers to benefit from the aid soon, the trade union should clearly identify the recipients, simplify procedures and apply information and technology in the implementation.

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung on October 21 decided to establish 12 teams to inspect the delivery of assistance for employers and employees hit by the Covid-19 pandemic.

Under the decision, they were assigned to check the shortages of workers in economic sectors, domestic and foreign-invested firms, industrial and processing zones, and suggest measures to recover the labor market.