Decision 28 covering financial aid and support measures for employees and employers in Vietnam.

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Decision 28 covering financial aid and support measures for employees and employers in Vietnam

The Vietnamese Government issued Decision 28/2021/QĐ-TTg (“Decision 28”) on 1 October 2021 to support employees and employers in Vietnam facing difficulties due to COVID-19, with financial aid and reductions in contributions for the Unemployment Insurance (UI) Fund.

Financial aid for employees paying Unemployment Insurance contributions to ease COVID-19 impacts

According to this Resolution, financial aid is given to the following beneficiaries:

  • Employees listed as those participating in Unemployment Insurance up until 30 September 2021; (Except those working for state agencies, political organizations, socio-political organizations, units of people’s armed forces and public service delivery units whose recurrent expenditures are financed by the state budget).
  • Employees whose employment contracts were terminated between 1 January 2020 and 30 September 2021, and whose UI contribution periods were maintained (except monthly old-age pensioners).

The financial aid varies according to the UI contribution period, and are calculated as follows:

UI contribution periodFinancial aid (VND/person)
<1 year1,800,000
1 full year – <5 year2,100,000
5 full year – <7 year2,400,000
7 full year – <9 year2,650,000
9 full year – <11 year2,900,000
≥11 year3,300,000

*Funding source: VND 30,000 billion from the unemployment insurance fund balance asat the end of 2020. The time period for the financial support starts from 1 October 2021 and will be completed by 31 December 2021 at the latest.

Reductions in contributions to the Unemployment Insurance Fund for employers affected by the COVID-19 pandemic

Beneficiaries subject to the relief application:

Employers specified in Article 43 of the Employment Law (excluding state agencies, political organizations, socio-political organizations, people’s armed forces and public non-business units due to the state budget guaranteeing recurrent expenditure) which were participating in Unemployment Insurance before 1 October 2021.

Article 43 delineates the entities participating in unemployment insurance, defined as:

  • State agencies, public non-business units, people’s armed forces units
  • Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations
  • Foreign agencies, organizations and international organizations operating in the Vietnamese territory
  • Enterprises, cooperatives, households, business households, cooperative groups, other organizations and individuals that hire or employ workers under a working contract or a labor contract specified in Clause 1 of this Article.


The discount rate:

Employers are entitled to reduce the contribution rate from 1% to 0% of the monthly salary fund of employees who are subject to unemployment insurance.

The timeframe of the reduction application:

12 months, from 1 October 2021 until 30 September 2022.


If you need any assistance with these or any other matters relevant for international investors in Vietnam, our experts are ready to work with your company to ensure you understand how the above will apply to your specific situation in Vietnam.

Contact our teams for expert support and further information on managing labour and HR compliance in Vietnam.

Huynh Thi Bao Tran– Head of Payroll and HR Consulting –

Matthew Lourey – Managing Partner –

Last updated on October 6, 2021
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