From January 01, 2015, unemployment insurance benefits (BHTN) will be implemented in accordance with the provisions of the Employment Law 2013, replacing the provisions of the Social Insurance Law. Accordingly, there will be several major changes.
Article table of contents
1. Expansion of mandatory participants in unemployment insurance (UI): Compared to previous regulations, the group of participants in UI under the Employment Law will include employees working under seasonal contracts for 3 months or more. On the other hand, the provision that employers (ERs) need to employ 10 or more employees to participate in UI has been removed.
However, domestic workers or employees who are receiving pensions are not required to participate in UI.
2. Maximum UI contribution level will not exceed 20 times the regional minimum wage (for employees who are paid wages determined by the employer).
New points on unemployment insurance applied from 2015
3. Specific guidance on calculating the duration of UI participation to determine the entitlement: it will be calculated by the total periods of UI contribution (continuous or non-continuous) that the employee has not received unemployment benefits.
Number of months eligible for unemployment benefits:
- Contributing to UI for 12 to less than 36 months: 3 months. No change compared to before.- Afterward, for every additional 12 months of UI contribution, an additional 1 month of unemployment benefits is added. This continues until the maximum of 12 months of unemployment benefits per person is reached.
Previously, if contributing to UI for 36 months, one would receive 6 months of unemployment benefits. Similar increments follow thereafter. There’s no need to wait until contributing 72 months to receive 6 months of benefits under the new regulations effective January 1, 2015.
4. Employees who unilaterally terminate labor contracts/employment contracts illegally will not be eligible for unemployment benefits.
5. For employees working under seasonal contracts, to be eligible for UI, they must have 12 months of UI contribution within 36 months before terminating the contract (for other types of contracts, this condition is having 12 months of UI contribution within 24 months before termination).
6. Reduction in monthly unemployment benefit policies compared to before:
- Duration of benefit: under the new regulations, employees participating in UI for 12 to 36 months will receive 3 months of benefits, thereafter, for every additional 12 months of UI contribution, they will receive an additional 1 month, but not exceeding 12 months.- According to this calculation method, employees contributing to UI for 36 months will receive 3 months of benefits (previously 6 months), contributing for 72 months will receive 6 months (previously 9 months).- Monthly benefit level: the maximum limit will not exceed 5 times the regional minimum wage or statutory pay rate.
7. Employees under temporary detention will have their unemployment benefits suspended (previously just temporarily suspended). Additionally, employees will have their benefits suspended in the following newly added cases compared to the previous regulation:
- Attending school for a period of 12 months or more;- Receiving administrative penalties for violating unemployment insurance laws;- Being declared missing by a court;
8. Employees receiving unemployment benefits who find employment will have their benefits suspended and will not receive a lump sum for the remaining months as before. Instead, the unutilized UI participation period will be reserved and accumulated for the next entitlement period. The calculation method for this reserved period will follow Article 53, Clause 4 of the Employment Law.
9. Expansion of beneficiaries eligible for vocational training support policies and job search support: Employees required to participate in UI after leaving their jobs will be provided free job consultation and introduction if they need it. For vocational training support, it will be applicable to employees who have contributed to UI for 9 months or more within 24 months before leaving the job.
Previously, these two policies only applied to employees receiving unemployment benefits.
Conditions for receiving vocational training support when participating in unemployment insurance (UI)
From February 10, 2015, employees participating in UI are eligible for vocational training support if they meet the following conditions:
- Terminate their labor contract or employment contract (except for cases where the employee unilaterally terminates or receives a monthly pension for loss of work capacity).- Have submitted an application for unemployment benefits to the employment service center.- Have not found employment within 15 days from the date of application for UI benefits, except in cases:
- Performing military service, police duty;- Attending school for a period of 12 months or more;- Complying with a decision to be sent to reform schools, compulsory education centers, compulsory rehabilitation centers;- Being temporarily detained; serving a prison sentence;- Emigrating abroad; working overseas under a contract;- Deceased.
- Have contributed to UI for 9 months or more within 24 months before terminating their labor contract or employment contract.- The maximum support level is 1 million VND/person/month and is calculated monthly, depending on the profession, tuition fees, and actual vocational training duration.- If the vocational training course has fractional days less than a month, these fractional days are rounded to 1 month to determine the level of vocational training support.
The above content is stipulated in Decision 77/2014/QD-TTg.
10. Additional policies for "supporting training, retraining, enhancing vocational skills to maintain employment for employees" for employers. The specific support method will be detailed by the Government of Vietnam.
Source: daotaoketoanhcm.com
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