HCMC dawdles over workers rent subsidy disbursement

By Thu Hang July 14, 2022 | 09:00 pm PT

A female worker is seen in her rented apartment in Ho Chi Minh City. Photo by VnExpress/Le Tuyet

With the deadline for disbursement just over a month away, Ho Chi Minh City has only spent 0.06 percent of its allocated budget for subsidizing workers' rents.

The city has earmarked VND2.1 trillion ($89.67 million) for the period from April 1 to August 15, but has so far only disbursed VND1.25 billion, deputy director of the Department of Labor, Invalids and Social Affairs, Nguyen Van Lam, said at a press briefing Thursday.

The government in March approved a rent support package worth VND6.6 trillion to benefit 3.4 million workers in the hope of persuading them to return to cities and factories amid a post-pandemic labor shortage.

HCMC was allocated nearly a third of the amount, but three and a half months later it has only subsidized 1,425 workers out of a targeted 1.2 million, a ratio of 0.12 percent.

The city’s social insurance department has already confirmed that 613,500 workers are eligible for the subsidy, but only three districts have partly disbursed the fund. The city has 24 districts.

Lam blamed the delay on businesses being cautious and taking time to submit their lists.

But the disbursement is gaining pace and 1,000 new workers are being registered every day for the subsidy of VND500,000-VND1 million per month for three months, he added.

Nationally too, the disbursement rate is low with only 1 percent spent as of July 4, meaning only 13,500 workers out of the targeted 3.4 million getting the money so far, according to the Ministry of Labor, Invalids and Social Affairs.