List of public service services using the Unemployment Insurance Fund in Vietnam

List of public service services using the Unemployment Insurance Fund in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On November 23, 2023, the Prime Minister issued Decision 1474/QD-TTg promulgating the List of public service services using the Unemployment Insurance Fund.

1. List of public service services using the Unemployment Insurance Fund in Vietnam

According to Article 1 of Decision 1474/QD-TTg, the List of public service services using the Unemployment Insurance Fund, specifically as follows:

- Consulting and job placement service groups for employees as prescribed in Article 54 of the Employment Law 2013

+ Consulting services.

+ Job introduction service.

- The service group deals with training, fostering, and improving vocational skills to maintain jobs for workers.

+ Services for receiving and processing dossiers requesting support for training, fostering, and improving vocational skills to maintain jobs for workers.

+ Results return service supports training, fostering, and improving vocational skills to maintain jobs for workers.

- Service group for handling unemployment benefits

+ Services for receiving and processing applications for unemployment benefits.

+ Job search notification service.

+ Service to temporarily suspend unemployment benefits.

+ Services continue to enjoy unemployment benefits.

+ Service to terminate unemployment benefits.

+ Transfer and reception services for relocation to receive unemployment benefits.

- Services for receiving and processing applications for vocational training support.

2. Levels of contribution to, sources and use of, the Unemployment Insurance Fund in Vietnam

According to Article 57 of the Employment Law 2013, levels of contribution to, sources and use of, the Unemployment Insurance Fund are specified as follows:

- The levels of and responsibility to pay unemployment insurance premiums are specified 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.

- Sources forming the Unemployment Insurance Fund include:

+ Contributions and support specified in Clause 1 of Article 57 of the Employment Law 2013;

+ Profits from the Fund’s investment activities;

+ Other lawful revenues.

- The Unemployment Insurance Fund must be used for:

+ Paying unemployment allowance;

+ Supporting training and retraining activities to improve occupational skills qualifications for job maintenance for workers;

+ Supporting vocational training;

+ Supporting job counseling and recommendation;

+ Paying health insurance premiums for workers on unemployment allowance;

- Paying expenses for unemployment insurance management in accordance with the Law on Social Insurance;

- Making investment for preservation and growth of the Fund.

3. Regulations on management of the Unemployment Insurance Fund in Vietnam

- The Unemployment Insurance Fund may apply independent cost-accounting. Social insurance organizations shall collect, spend, manage and use the Unemployment Insurance Fund.

- The Unemployment Insurance Fund’s investment activities must ensure safety, transparency, efficiency, and capital retrieval when necessary, through:

+ Buying bonds and bills of the State and bonds of commercial banks with over 50% of charter capital owned by the State;

+ Making investment in important projects under the Prime Minister’s decisions;

+ Providing loans for the state budget, the Vietnam Development Bank, the Vietnam Bank for Social Policies, and commercial banks with over 50% of charter capital owned by the State.

- The Government shall detail the percentages of state budget support; the management and use of the Fund; and the implementation of unemployment insurance.

(Article 59 of the Employment Law 2013)

Nguyen Ngoc Que Anh

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