How is Unemployment Insurance Calculated?

Legal Secretary hereby addresses your query as follows:

According to Article 42 of the 2013 Employment Law, unemployment benefits are one of the policies of unemployment insurance. Specifically, the unemployment insurance benefits include:

- Unemployment benefits;- Job counseling and placement;- Vocational training support;- Training, retraining, and skill enhancement to maintain employment for workers.

To be eligible for unemployment benefits, employees who are paying unemployment insurance must ensure the following conditions (Article 49):

1. Termination of labor contract or working contract, except for the following cases:- The employee unilaterally terminates the labor contract or working contract illegally;- Receiving pension, monthly loss of working capacity allowance.
2. Regarding social insurance contribution period:- At least 12 months within 24 months prior to the termination of an indefinite or definite term labor contract;- At least 12 months within 36 months prior to the termination of a seasonal labor contract or a contract for a specific job with a term of at least 3 months but less than 12 months.
3. Submitted the unemployment benefits application at the employment service center. The submission deadline is 3 months from the date of termination of the labor contract;
4. Has not found a job within 15 days from the date of submission of the unemployment insurance application, except for the following cases:- Performing military or police duties;- Pursuing education with a duration of at least 12 months;- Complying with decisions to enter reform schools, compulsory education centers, compulsory rehabilitation centers;- Being in temporary detention; serving a prison sentence;- Moving abroad for permanent residency, working abroad under a contract;- Deceased.

Employees who meet the above conditions will be entitled to unemployment benefits at the rate of:

Monthly unemployment benefit = 60% of the average monthly salary used for unemployment insurance contributions of the 6 consecutive months prior to unemployment. Where, the average wage must be:

- At most 5 times the statutory pay rate for employees subject to the salary policies regulated by the State;- At most 5 times the regional minimum wage according to the Labor Code for employees paying unemployment insurance based on salary policies decided by the employer at the time of termination of the labor contract or working contract.

Example:

The monthly salary used for unemployment insurance contributions of the 6 consecutive months prior to unemployment is 3,000,000 VND, then the average monthly salary is (Month 1 salary + Month 2 salary + Month 3 salary + Month 4 salary + Month 5 salary + Month 6 salary)/6 = 3,000,000 VND.

Assuming the employee has contributed to insurance for 12 months, the unemployment benefit entitlement will be:

Benefit amount = 60% * 3,000,000 * 3 = 5,400,000 VND

Therefore, you will be entitled to unemployment benefits when meeting the above regulations.

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