Unemployment is something no one desires as it directly impacts the lives of workers and their families. Receiving unemployment insurance benefits when participating in unemployment insurance is incredibly meaningful in cases of unemployment. What are the current legal regulations regarding unemployment insurance benefits?
Article table of contents
Subjects Required to Contribute to Unemployment Insurance
Unemployment insurance is a policy designed to partially compensate an employee's income when they lose their job, support them in vocational training, job maintenance, and job search based on contributions to the Unemployment Insurance Fund.
According to Clause 1, Article 43 of the Employment Law 2013, employees must participate in unemployment insurance when working under labor contracts or work contracts as follows:
- Indefinite-term labor contract or work contract;- Definite-term labor contract or work contract;- Seasonal labor contract or specific job contract with a term of 03 months to less than 12 months.
In cases where an employee engages in multiple labor contracts, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance.
Employees receiving a retirement pension, monthly loss of labor capacity allowance, or household help are not required to participate in unemployment insurance.
Unemployment Insurance Contribution Rates
According to Article 14 of Decision 959/QD-BHXH in 2015 regarding the management of social insurance, health insurance, unemployment insurance contributions, management of social insurance books, and health insurance cards, the contribution rates and responsibilities for unemployment insurance are specified as follows:
- Employees contribute 1% of their monthly salary;- Units contribute 1% of the monthly salary fund of employees participating in unemployment insurance;- The state supports a maximum of 1% of the monthly salary fund contributed to unemployment insurance by employees, guaranteed by the central budget.
Monthly salary for unemployment insurance contributions:
For employees subject to salary policies regulated by the state, the monthly salary for unemployment insurance contributions is the salary used as the basis for compulsory social insurance contributions. Specifically::
- It is the salary by rank, grade, military rank, and allowances for position, seniority beyond scale, and professional seniority (if any). This salary is calculated based on the statutory pay rate.- For non-specialist personnel in communes, wards, and towns participating in compulsory social insurance into the pension and mortality fund (effective from January 1, 2016), the monthly salary for contributions is the statutory pay rate.
For employees contributing to unemployment insurance based on salary policies determined by the unit, the monthly salary for unemployment insurance contributions is the salary used as the basis for compulsory social insurance contributions. Specifically, it is the salary stated in the labor contract. If the employee's monthly salary exceeds twenty times the regional minimum wage, the monthly salary for unemployment insurance contributions will be capped at twenty times the regional minimum wage.
Conditions, Levels, Duration, and Timing for Receiving Unemployment Benefits
Within 03 months from the date of termination of the labor contract or work contract, the employee submits an application for unemployment benefits at an employment service center established by the state employment management agency.
Conditions for receiving unemployment benefits as specified in Article 49 of the Employment Law 2013 are as follows:
- Termination of the labor contract or work contract, except in cases where:- The employee unilaterally terminates the labor contract or work contract illegally;- Receiving a retirement pension, monthly loss of labor capacity allowance;- Has contributed to unemployment insurance for at least 12 months within 24 months before the termination of the labor contract or work contract (for definite-term and indefinite-term labor contracts); has contributed to unemployment insurance for at least 12 months within 36 months before the termination of the labor contract (for seasonal labor contracts or specific tasks with a term of 03 months to less than 12 months);- Has submitted an application for unemployment benefits at the employment service center as stipulated in Clause 1, Article 46 of this Law;- Has not found a job within 15 days from the date of submitting the application for unemployment benefits, except in cases where:- Performing military service, police service;- Studying with a term of 12 months or more;- Undergoing a decision to be sent to a reformatory, compulsory education institution, compulsory rehabilitation center;- Being detained; serving a prison sentence;- Settling abroad; working abroad under a contract;- Death.
Monthly Unemployment Benefit Levels
- For employees subject to salary policies regulated by the state: equal to 60% of the average monthly salary for unemployment insurance contributions of the 06 consecutive months before unemployment but not exceeding 05 times the statutory pay rate;- For employees contributing to unemployment insurance based on salary policies determined by the employer: not exceeding 05 times the regional minimum wage as prescribed by the Labor Code at the time of termination of the labor contract or work contract.
The duration for receiving unemployment benefits is calculated based on the number of months of unemployment insurance contributions: for every 12 months of contributions from 12 months to 36 months, 03 months of unemployment benefits are received, thereafter, for every additional 12 months, 01 month of unemployment benefits is received, but not exceeding 12 months in total.
The timing for receiving unemployment benefits is calculated from the 16th day from the date of submitting a complete application for unemployment benefits.
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