How much is the unemployment insurance premium in 2023? Who are compulsory participants in unemployment insurance in Vietnam?
Who are compulsory participants in unemployment insurance in Vietnam?
Pursuant to Article 43 of the 2013 Law on Employment in Vietnam stipulating compulsory participants in unemployment insurance as follows:
- Workers are obliged to participate in unemployment insurance when working under employment contracts or working contracts below:
+ Employment contracts or working contracts of indefinite time;
+ Employment contracts or working contracts of definite time;
+ Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.
In case a worker has signed and is performing more than one Employment contract specified in this Clause, the worker and the employer under the Employment contract signed first shall participate in unemployment insurance.
- Workers defined in Clause 1 of this Article who are currently on pension or doing housework are not required to participate in unemployment insurance.
- Employers obliged to participate in unemployment insurance include state agencies, public non-business units and people’s armed forces units;
Political organizations, socio-political organizations, socio-political-professional organizations, social organizations and socio-professional organizations; foreign agencies and 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 the employment contracts or working contracts specified in Clause 1, Article 43 of the 2013 Law on Employment in Vietnam.
How much is the unemployment insurance premium in 2023? Who are compulsory participants in unemployment insurance in Vietnam?
How much is the unemployment insurance premium in 2023?
Pursuant to Article 57 of the 2013 Law on Employment in Vietnam, the unemployment insurance premium is prescribed as follows:
- Workers shall pay unemployment insurance premiums equal to 1% of their monthly wage;
- Employers shall pay unemployment insurance premiums equal to 1% of the monthly wage fund of the workers currently participating in unemployment insurance;
- The State shall provide at most 1% of the monthly wage fund from the central budget as support for payment of unemployment insurance premiums of workers currently participating in unemployment insurance.
On what basis do employees pay unemployment insurance premiums?
- For employees according to the salary regime prescribed by the State:
The monthly salary on which unemployment insurance premiums are based is the salary as the basis for payment of compulsory social insurance in accordance with the Law on Social Insurance.
According to the provisions of Point 1.1, Clause 1, Article 6 of the Procedures promulgated together with Decision No. 595/QD-BHXH in 2017, the monthly salary as the basis for payment of compulsory social insurance is the salary plus (+) position allowance and seniority pay; including the coefficient of difference reserved in accordance with the law on salary.
The maximum unemployment insurance premium is 20 times the statutory pay rate. The current statutory pay rate as prescribed in Clause 2, Article 3 of Decree No. 38/2019/ND-CP is VND 1,490,000/month. However, from July 1, 2023, the statutory pay rate in 2023 is VND 1,800,000/month.
- For employees under the salary regime decided by the employer
The monthly salary on which unemployment insurance premiums are based is the salary used as the basis for payment of compulsory social insurance in accordance with the Law on Social Insurance.
In Clause 2.6, Article 6, the Procedures promulgated together with Decision No. 595/QD-BHXH in 2017 stipulating that the monthly salary as the basis for payment of compulsory social insurance must not fall below the region-based minimum wage of the person holding the simplest position under normal working conditions.
To be specific:
- A person whose job or position requires training (including training provided by the employer) must be higher than the region-based minimum wage by at least 7%;
- The salary of a person working under strenuous, toxic or dangerous conditions must be higher by at least 5% than that of a person having a similar job or position under normal working conditions; The salary of a person working under extremely strenuous, toxic or dangerous conditions must be higher by at least 7% than that of a person having a similar job or position under normal working conditions.
Thus, the minimum unemployment insurance premium is 1% of the region-based statutory minimum wage and the maximum is 20 times the region-based statutory minimum wage.
In particular, the region-based statutory minimum wage specified in Article 3 of Decree No. 38/2022/ND-CP is as follows:
+ Region I is 4,680,000 VND/month
+ Region II is 4,160,000 VND/month
+ Region III is 3,640,000 VND/month
+ Region IV is 3,250,000 VND/month.
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