Are retired employees required by law to pay unemployment insurance premiums in Vietnam?
- Are retired employees required by law to pay unemployment insurance premiums in Vietnam?
- Who must participate in unemployment insurance in Vietnam?
- What is the regulation on the period of payment of unemployment insurance premiums in Vietnam?
- What is the current maximum unemployment insurance premium in Vietnam?
Are retired employees required by law to pay unemployment insurance premiums in Vietnam?
Pursuant to Clause 2, Article 43 of the Law on Employment 2013 stipulates as follows:
Compulsory participants in unemployment insurance
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2. Workers defined in Clause 1 of this Article who are currently on pension or doing housework are not required to participate in unemployment insurance.
According to the above regulations, retired employees are not required to participate in unemployment insurance.
Are retired employees required by law to pay unemployment insurance premiums in Vietnam?
Who must participate in unemployment insurance in Vietnam?
Pursuant to Clause 1, Article 43 of the Law on Employment 2013 stipulates as follows:
Compulsory participants in unemployment insurance
1. Workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:
a/ Labor contracts or working contracts of indefinite time;
b/ Labor contracts or working contracts of definite time;
c/ 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 labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.
Accordingly, workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:
- Labor contracts or working contracts of indefinite time;
- Labor 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 the employee enters into and is performing many labor contracts specified in this Clause, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance.
What is the regulation on the period of payment of unemployment insurance premiums in Vietnam?
Pursuant to Clause 1, Article 45 of the Law on Employment 2013:
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 labor contract or working contract under law but during which he/she has not yet received any unemployment allowance.
Accordingly, 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 labor contract or working contract under law but during which he/she has not yet received any unemployment allowance.
Pursuant to Article 12 of Decree 28/2015/ND-CP (amended by Clause 4, Article 1 of Decree 61/2020/ND-CP) has the following provisions:
Unemployment insurance premium payment
1. The payment time of unemployment insurance premium of employers and employees shall be the payment time of compulsory social insurance.
2. An employee is certified to be currently paying unemployment insurance contribution under the provisions of Article 49 of the Employment Law if he/she falls into one of the following cases:
a) That employee has paid unemployment insurance contribution for the month of termination of employment or labor contract, which is certified by the social insurance agency in his/her social insurance book;
b) That employee has paid unemployment insurance contribution for the month preceding the month of termination of employment or labor contract, which is certified by the social insurance agency in his/her social insurance book;
c) That employee takes sickness or maternity leave for 14 working days or more at the employer’s office without being paid any monthly salary or wage in the month preceding the month of termination of labor or employment contract, or in the month of termination of labor or employment contract, which is certified by the social insurance agency in his/her social insurance book;
d) That employee takes unpaid leave for 14 working days or more in the month preceding the month of termination of labor or employment contract, or in the month of termination of labor or employment contract, which is certified by the social insurance agency in his/her social insurance book;
dd) That employee temporarily suspend the execution of his/her labor or employment contract for 14 working days or more in the month preceding the month of termination of labor or employment contract, or in the month of termination of labor or employment contract, which is certified by the social insurance agency in his/her social insurance book.
3. The month of payment of unemployment insurance contribution for an employee will be counted if the employer and the employee have performed the labor or employment contract, and have paid unemployment insurance constructions.
If the employee already entitled to unemployment benefits obtains certification of the additional time of payment of unemployment insurance after having their entitlement terminated, the additional time shall be determined as the period of time during which UI contribution has been made, but UI benefits have not been received, under clause 1 of Article 45 in the Law on Employment.
Thus, the time of paying unemployment insurance premiums of employees is the time of paying compulsory social insurance.
What is the current maximum unemployment insurance premium in Vietnam?
According to the provisions of Clause 1, Article 57 of the Law on Employment 2013 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.
According to the above regulations, there is no maximum or minimum level to pay unemployment insurance, but the insured will have a common contribution rate of 1% of the monthly salary participating in the insurance.
Accordingly, the unemployment insurance premium paid by employees is regulated 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.
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