The number of people receiving unemployment allowance is estimated to reach 1.03 million by the end of this year, about 24 percent higher than the same period last year due to the impacts of the Covid-19 pandemic.
As calculated, the total payment for unemployment allowance has reached over 16 trillion VND (689 million USD) by the end of December, about 33 percent higher than the same period last year.Illustrative image (Source: VNA)

Dao Duy Hien, deputy head of Social Insurance Policy Implementation Department under Vietnam Social Security, revealed the data at a recent online meeting on “Promoting efficiency of unemployment insurance policy."

Hien also added that the unemployment insurance policy already affirmed its important role in sharing the financial burden for labourers during the pandemic, contributing to ensuring the economic and social stability of the country.

He said the COVID-19 pandemic has affected every aspect of socio-economic life this year, especially the sectors of tourism, accommodation, catering and education.

In response to the situation, the Government promptly issued Resolution No 42/NQ-CP on April 8 about solutions to support people and businesses affected by the pandemic, he said.

Under the resolution, both employees and employers who were affected by the pandemic were allowed to temporarily suspend their payments to the retirement and survivor benefits fund for 12 months, he said.

The resolution also allowed unemployed labourers to apply for the unemployment allowance online, he said.

Hien said it is estimated that the number of people participating in unemployment insurance would reach about 13.2 million with the total payment of over 18 trillion USD (773 million USD) by December 31, he said.

The unemployment insurance fund had been operated well in accordance with regulations and had a surplus in recent years, he said.

By the end of 2019, the fund's surplus was about 84 trillion VND (3.6 billion USD). Profits from the fund's annual investment activities were allocated in accordance with regulations, he said.

The surplus would help to balance the fund if the number of people receiving unemployment allowance continued increasing due to the pandemic, he said./. VNA