HCMC – PouYuen Vietnam will provide VND275 billion in financial aid for employees who will be laid off next month.

Each laid-off employee will be entitled to an amount equal to 0.8 month of salary for each year of service, and the average allowance for each employee will be VND116 million, according to the Vietnam News Agency.

The total amount the company will spend to support the laid-off employees is VND275 billion.

Employees who have worked with the company for over 20 years will be entitled to an allowance of VND300-379 million for each person. Those with the shortest working service will be paid VND12 million per person as the redundancy allowance by the company.

These employees will continue receiving salary, other benefits and social insurance payments until the company terminates their labor contracts.

For the unemployment insurance premiums, the social insurance agencies will pay the laid-off employees in accordance with the law.

PouYuen Vietnam, the Taiwan-invested footwear material manufacturer, is the city’s largest employer, with over 50,500 employees. However, it planned to lay off next month due to a sharp drop in new orders.