Is it allowed to accumulate the period of payment of unemployment insurance premiums in Vietnam? What factors do wages on which unemployment insurance premiums are based depend on?
Is it allowed to accumulate the period of payment of unemployment insurance premiums in Vietnam?
Pursuant to Clause 1, Article 45 of the 2013 Law on Employment of Vietnam:
Period of payment of unemployment insurance premiums
1. The period of payment of unemployment insurance premiums for receipt of unemployment insurance benefits is the total of consecutive or interrupted periods of payment of unemployment insurance premiums from the starting time of such payment to the time the worker terminates his/her employment contract or working contract under law but during which he/she has not yet received any unemployment allowance.
2. After a worker stops receiving unemployment allowance, his/her previous period of payment of unemployment insurance premiums is not counted for receiving unemployment allowance for the subsequent time. The period of payment of unemployment insurance premiums for the subsequent receipt of unemployment insurance benefits will be counted from the beginning, except the case of stopping receiving unemployment allowance under Points b, c, h, l, m and n, Clause 3, Article 53 of this Law.
3. The period of payment of unemployment insurance premiums is not counted for receiving job loss allowance or severance pay under the laws on labor and public employees.
Thus, according to the above provisions, the period of participation in unemployment insurance is the total period of unemployment insurance payment and is cumulative. Therefore, when an employee has not yet received unemployment insurance when he/she quits his/her job, the period of payment of unemployment insurance premiums will be accumulated later.
Is it allowed to accumulate the period of payment of unemployment insurance premiums in Vietnam? What factors do wages on which unemployment insurance premiums are based depend on?
Who is responsible for payment of unemployment insurance premiums?
Pursuant to Clause 1, Article 57 of the 2013 Law on Employment of Vietnam on levels of levels of unemployment insurance premiums as follows:
Levels of contribution to, sources and use of, the Unemployment Insurance Fund
1. The levels of and responsibility to pay unemployment insurance premiums are specified as follows:
a/ Workers shall pay unemployment insurance premiums equal to 1% of their monthly wage;
b/ Employers shall pay unemployment insurance premiums equal to 1% of the monthly wage fund of the workers currently participating in unemployment insurance;
c/ 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.
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Thus, the responsibility to pay unemployment insurance premiums are specified 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.
What factors do wages on which unemployment insurance premiums are based depend on?
Pursuant to Article 58 of the 2013 Law on Employment of Vietnam on wages on which unemployment insurance premiums are based stipulating as follows:
Wages on which unemployment insurance premiums are based
1. For workers who receive wages under the State-prescribed regime, the monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums are based under the Law on Social Insurance. In case the monthly wage on which unemployment insurance premiums are based is higher than the twenty months’ statutory pay rate, the monthly wage on which unemployment insurance premiums will be equal to the twenty months’ statutory pay rate at the time of payment of unemployment insurance premiums.
2. For workers paying unemployment insurance premiums under the wage regime decided by employers, the monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums are based under the Law on Social Insurance. In case the monthly wage on which unemployment insurance premiums are based is higher than the twenty months’ region-based minimum wage, the monthly wage on which unemployment insurance premiums are based will be equal to the twenty months’ region-based minimum wage as prescribed by the Labor Code at the time of payment of unemployment insurance premiums.
Thus, wages on which unemployment insurance premiums are based depend on the salary regime of each subject, specifically:
(1) For workers who receive wages under the State-prescribed regime:
The monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums.
In case the monthly wage on which unemployment insurance premiums are based is higher than the twenty months’ statutory pay rate, the monthly wage on which unemployment insurance premiums will be equal to the twenty months’ statutory pay rate at the time of payment of unemployment insurance premiums.
In Clause 2, Article 3 of Decree No. 38/2019/ND-CP, the statutory pay rate is VND 1,490,000.
According to Decree No. 24/2023/ND-CP, the statutory pay rate will be increased from July 1, 2023 to VND 1,800,000.
Therefore, the maximum unemployment insurance premium also changes. Increase the maximum unemployment insurance premiums for the group of subjects who are paid according to the state from 298,000 VND/month to 360,000 VND/month.
(2) For workers paying unemployment insurance premiums under the wage regime decided by employers:
The monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums are based.
In case the monthly wage on which unemployment insurance premiums are based is higher than the twenty months’ region-based minimum wage, the monthly wage on which unemployment insurance premiums are based will be equal to the twenty months’ region-based minimum wage as prescribed by the Labor Code at the time of payment of unemployment insurance premiums.
Nguyễn Thị Hồng Nhung