How to calculate unemployment benefits 2025 in Vietnam? Are unemployment benefits subject to personal income tax in Vietnam?
How to calculate unemployment benefits 2025 in Vietnam?
According to current regulations, unemployment benefits in 2025 are calculated as follows:
(1) Monthly Unemployment Benefit Level:
According to Clause 1, Article 50 of the Employment Law 2013, the formula to calculate the monthly unemployment benefit is as follows:
| Monthly Unemployment Benefit Level | = | 60% | x | Average monthly salary for unemployment insurance contributions of 6 months close to unemployment. |
Wherein: The maximum monthly unemployment benefit does not exceed:
- For employees receiving salary according to policies set by the State:
+ Maximum not more than 5 times the statutory pay rate.
+ Accordingly, from July 01, 2024, the statutory pay rate is 2,340,000 VND/month (according to Clause 2, Article 3 of Decree 73/2024/ND-CP).
Therefore, the maximum benefit level is: 2,340,000 VND x 5 = 11,700,000 VND/month.
- For employees receiving salary decided by enterprises:
+ Maximum not more than 5 times the regional minimum wage.
+ Accordingly, from July 01, 2024, the regional minimum wage is adjusted according to Article 3 of Decree 74/2024/ND-CP specifically as follows:
Region 1: 4,960,000 VND/month.
Region 2: 4,410,000 VND/month.
Region 3: 3,860,000 VND/month.
Region 4: 3,450,000 VND/month.
Thus, the corresponding maximum benefit level is:
Region 1: 4,960,000 VND x 5 = 24,800,000 VND/month.
Region 2: 4,410,000 VND x 5 = 22,050,000 VND/month.
Region 3: 3,860,000 VND x 5 = 19,300,000 VND/month.
Region 4: 3,450,000 VND x 5 = 17,250,000 VND/month.
(2) Duration of Unemployment Benefits:
Clause 3, Article 50 of the Employment Law 2013 provides for the duration of unemployment benefits as follows:
Paid fully from 12 to 36 months: Receive 3 months of benefits
After that, for every additional 12 months paid, an additional 1 month of benefits is received.
Note: The total duration of benefits must not exceed 12 months.
(3) Specific Example:
Mr. A:
- Paid unemployment insurance for 50 months.
- Average salary for the 6 months prior to unemployment: 10,000,000 VND/month.
Thus, the duration of benefits is as follows:
+ First 36 months: Receive 3 months of benefits (as paying from 12 to 36 months qualifies for 3 months of benefits).
+ Next 12 months: Receive an additional 1 month of benefits.
+ Remaining 2 months are reserved for future benefits.
>> Total duration of benefits: Receive 4 months of benefits.
>> Monthly benefit level: 10,000,000 VND x 60% = 6,000,000 VND/month.
Ms. B:
- Paid unemployment insurance for 40 months.
- Average salary for the 6 months prior to unemployment: 30,000,000 VND/month.
- Duration of benefits:
+ First 36 months: Receive 3 months of benefits.
+ Next 4 months: Not sufficient 12 months for additional benefits, so reserved for later.
>> Total duration of benefits: Receive 3 months of benefits.
>> Monthly benefit level: 30,000,000 VND x 60% = 18,000,000 VND/month.
If Ms. B works in Region 1, the maximum benefit is 24,800,000 VND/month, so Ms. B receives the full 18,000,000 VND/month.
If Ms. B works in Region 2, the maximum benefit is 22,050,000 VND/month, so Ms. B receives the full 18,000,000 VND/month.
If Ms. B works in Region 3, the maximum benefit is 19,300,000 VND/month, so Ms. B receives the full 18,000,000 VND/month.
If Ms. B works in Region 4, the maximum benefit is 17,250,000 VND/month, so Ms. B receives only 17,250,000 VND/month.
Note: Employees must submit application for unemployment benefits within 3 months from the date of employment contract termination and meet the stipulated conditions to be eligible for benefits.
How to calculate unemployment benefits 2025 in Vietnam? (Image from the Internet)
Where to submit application for unemployment benefit in Vietnam?
Based on Clause 1, Article 17 of Decree 28/2015/ND-CP concerning the location for submitting application for unemployment benefits:
Submission of Application for Unemployment Benefits
- Within 03 months from the date of termination of the labor contract or working contract, employees who are unemployed and wish to receive unemployment benefits must directly submit 01 set of application for benefits as per regulations in Article 16 of this Decree to the employment service center at the locality where the employee wishes to receive unemployment benefits.
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Thus, employees can submit their application for unemployment benefits at the Employment Service Center at the locality where they wish to receive unemployment benefits.
Are unemployment benefits subject to personal income tax in Vietnam?
Based on Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC (amended in Circular 92/2015/TT-BTC), which specifies allowances and subsidies not subject to personal income tax as follows:
Income from Salary, Wage
Income from salary, wage is the income received by employees from employers, including:
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b) Allowances, subsidies, except for the following allowances, subsidies:
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b.6) Sudden difficulty allowance, accident compensation, occupational disease allowance, one-time childbirth or adoption allowance, maternity regime benefits, convalescence and rehabilitation benefits after maternity, work cessation allowance, job loss allowance, unemployment benefits, and other allowances in accordance with the Labor Law and Social Insurance Law.
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Thus, according to the above regulation, unemployment benefits are not subject to personal income tax.
