What are the conditions for receiving unemployment allowance in Vietnam in 2025? Who are compulsory participants in unemployment insurance in Vietnam in 2025?

Who are compulsory participants in unemployment insurance in Vietnam in 2025?

According to the provisions of Article 43 of the 2013 Employment Law, entities required to participate in unemployment insurance include:

(1) Employees

Employees are required to participate in unemployment insurance when working under a labor contract or a working contract as follows:

- Labor contracts or working contracts with indefinite terms;

- Labor contracts or working contracts with definite terms;

- Seasonal labor contracts or certain specific jobs with a term from full 3 months to under 12 months.

In the case where the employee concludes and is executing multiple labor contracts as stipulated in this clause, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance.

Note: Employees under the above stipulation who are receiving retirement pensions or domestic worker salaries are not required to participate in unemployment insurance.

(2) Employers

Employers participating in unemployment insurance include:

- State agencies, public service providers, people's armed forces units;

- Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations;

- Foreign agencies, international organizations operating within the territory of Vietnam;

- Enterprises, cooperatives, households, business households, cooperatives, other organizations, and individuals employing workers under working contracts or labor contracts as stipulated in (1).

What are conditions for receiving unemployment allowance in Vietnam in 2025?

According to Article 49 of the 2013 Employment Law, employees as specified in Clause 1, Article 43 of the 2013 Employment Law, who are currently contributing to unemployment insurance, are entitled to unemployment allowance upon satisfying the following conditions:

- Termination of a labor contract or working contract, except for the following cases:

Case 1: The employee unilaterally terminates the labor contract or working contract illegally;

Case 2: Receiving retirement pension, monthly loss of working capacity allowance;

- Having paid unemployment insurance for at least 12 months within 24 months before terminating the labor contract or working contract for the cases stipulated in points a and b, Clause 1, Article 43 of the 2013 Employment Law; having paid unemployment insurance for at least 12 months within 36 months before terminating the labor contract in the case stipulated in point c, Clause 1, Article 43 of the 2013 Employment Law;

- Have submitted the dossier for unemployment allowance to the employment service center within 3 months from the date of termination of the labor contract or working contract.

- Have not found employment after 15 days from the date of submitting the dossier for unemployment insurance, except for the following cases:

+ Performing military service, public security duties;

+ Attending training programs lasting 12 months or more;

+ Serving decisions to undergo discipline in reformatories, compulsory education centers, or compulsory rehabilitation centers;

+ Being temporarily detained; serving a prison sentence;

+ Settling abroad; working abroad under contract;

+ Deceased.

Additionally, according to Clause 2, Article 12 of Decree 28/2015/ND-CP, amended and supplemented at Clause 4, Article 1 Decree 61/2020/ND-CP, an employee is considered to be contributing to unemployment insurance when belonging to one of the following cases:

- The employee has paid unemployment insurance for the month of termination of the labor contract or working contract and is certified by the social insurance agency in the social insurance book;

- The employee has paid unemployment insurance for the month immediately preceding the month of termination of the labor contract or working contract and is certified by the social insurance agency in the social insurance book;

- The employee has the month immediately preceding the month of termination of the labor contract or working contract or the month of termination of the labor contract or working contract, being unemployed due to illness, maternity leave from 14 working days or more in the month, and is not receiving a monthly salary from the unit, certified by the social insurance agency in the social insurance book;

- The employee has the month immediately preceding the month of termination of the labor contract or working contract or the month of termination of the labor contract or working contract being unpaid from 14 working days or more in the month at the unit and is certified by the social insurance agency in the social insurance book;

- The employee has the month immediately preceding the month of termination of the labor contract or working contract or the month of termination of the labor contract or working contract in which the implementation of the labor contract or working contract is temporarily suspended from 14 working days or more in the month at the unit, and is certified by the social insurance agency in the social insurance book.

What are the conditions for receiving unemployment allowance in Vietnam in 2025? (Image from the Internet)

Is the income from receiving unemployment allowance 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), stipulating allowances and subsidies exempt from personal income tax as follows:

Income from wages and salaries

Income from wages and salaries is the income received by employees from employers, includes:

...

b) Allowances and subsidies, except for the following allowances and subsidies:

...

b.6) Sudden difficulty allowances, accident subsidies, occupational disease allowances, one-time allowances upon childbirth or adoption, maternity policies, convalescence policies, rehabilitation after maternity leave, allowances due to reduced working capacity, one-time retirement allowances, monthly decrements, severance allowances, job loss allowances, unemployment allowances, and other allowances as stipulated by the Labor Code and the Law on Social Insurance.

...

Thus, according to the above regulations, the income from unemployment allowances is exempt from personal income tax.