Vietnam: Calculating unemployment insurance when participating in insurance at two companies? What documents should be prepared for an application for unemployment benefits?
How is unemployment insurance calculated when participating in insurance at two companies in Vietnam?
Pursuant to the provisions of Clause 1, Article 50 of the 2013 Employment Law of Vietnam, the level of unemployment benefits is as follows:
Article 50. Levels, duration and time of receipt of unemployment allowance
1. The monthly unemployment allowance level equals 60% of the average monthly wage of 6 consecutive months before the worker becomes unemployed on which unemployment insurance premiums are based, but must not exceed 5 times the basic wage level, for workers receiving wages under the State-prescribed regime, or must not exceed 5 times the region-based minimum wage level under the Labor Code, for workers who pay unemployment insurance premiums under the wage regime decided by employers at the time of termination of the labor contract or working contract.
Thus, the monthly unemployment benefits are equal to 60% of the average salary paid for unemployment insurance in the 6 consecutive months before quitting work. Therefore, comparing with your case, you have only worked at a new company for 3 months, so when calculating the average salary of unemployment insurance contributions, it is still based on both the salary of 8 million VND in the old company and 6 million VND in the new company.
Vietnam: Calculating unemployment insurance when participating in insurance at two companies? What documents should be prepared for an application for unemployment benefits?
What documents should be prepared for an application for unemployment benefits in Vietnam?
Pursuant to the provisions of Clause 6 Article 1 of Decree 61/2020/ND-CP (amending Clause 2 Article 16 of Decree 28/2015/ND-CP) stipulating the dossier of application for unemployment benefits as follows:
2. The primary or certified true copy, or the duplicate copy submitted along the primary copy for checking purposes, of one of the following documents certifying the termination of the labor or employment contract:
a) The labor or employment contract which have expired or under which all contractual obligations have been discharged;
b) Resignation acceptance decision;
c) Dismissal decision;
d) Decision on imposition of disciplinary sanction in the form of dismissal;
dd) Notice of or agreement on termination of the labor or employment contract;
e) Confirmation of the employer which clearly provides the employee's information; type of labor contract signed; reasons and time of termination of labor contract with the employee.
g) Certifying by the competent state authority that the enterprise or cooperative closes, goes bankrupt or decides to dismiss him/her, relieve him/her from duty or discharge him/her from the designated post in case the employee holds the post as a manager of that enterprise or cooperative;
h) In case the employee does not have the documents certifying the termination of the labor contract because the employer’s unit has no legal representative and the person authorized by the legal representative, the following steps must be taken:
Department of Labor - Invalids and Social Affairs or provincial-level Social Insurance agency sends a written request to the Department of Planning and Investment to certify that the employer does not have a legal representative or no person authorized by the legal representative.
Department of Planning and Investment is responsible for cooperating with the tax authority, police, and local government at the place where the employer’s head office is located to verify the fact that the employer has no legal representative or no person authorized by the legal representative.
Department of Planning and Investment sends a written response to the Department of Labor - Invalids and Social Affairs or provincial-level Social Insurance agency with regard to the fact that the employer does not have the legal representative or the person authorized by the legal representative within 10 working days of receipt of the written request for certification from the Department of Labor - Invalids and Social Affairs or provincial-level Social Insurance agency.
i) In case where the employee participates in the unemployment insurance plan under the provisions of Point c, Clause 1, Article 43 of the Law on Employment, the document certifying the termination of the seasonal or piecework labor contract with the term ranging from 03 months to less than 12 months must be the primary copy or the certified true copy or the duplicate copy enclosing the primary copy for checking of such contract.
Based on the above provisions, to receive unemployment benefits, you need to prepare a dossier of application for unemployment benefits including the following documents:
- Apply for unemployment benefits according to form No. 03 of Circular 28/2015/TT-BLDTBXH
- The original or certified copy of the document certifying the termination of the labor contract at the company.
- Social insurance book.
What benefits are employees entitled to unemployment insurance in Vietnam?
According to Article 42 of the 2013 Employment Law of Vietnam, unemployment insurance regimes are as follows:
Article 42. Unemployment insurance benefits
1. Unemployment allowance.
2. Job counseling and recommendation support.
3. Vocational training support.
4. Support for training and retraining to improve qualifications of occupational skills for job maintenance for workers.
Accordingly, when terminating the labor contract at the company that is eligible for unemployment benefits, in addition to the monthly allowance, he is also supported with consulting and job introduction; support apprenticeships or be supported with training, retraining and improvement of vocational skills.
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