Method of Calculating Unemployment Insurance

First, employees who wish to receive unemployment benefits must participate in unemployment insurance (UI) and meet the following conditions:

Firstly, the labor contract or working contract must be terminated. Except in the following cases: (1) The employee unilaterally terminates the labor contract or working contract illegally; (2) Receives a monthly pension or loss-of-work capacity allowance;

Secondly, has paid UI:

- For at least 12 months within 24 months before terminating the labor contract (for indefinite and definite term labor contracts);- For at least 12 months within 36 months before terminating the labor contract (for seasonal or job-specific labor contracts lasting from 03 months to less than 12 months)

Thirdly, has submitted the application for unemployment benefits at the employment service center.

Fourthly, has not found a job within 15 days from the date of submission of the application for UI benefits, except in the following cases:

- Performing military duty, public security duty;- Attending school with a duration of at least 12 months;- Complying with a decision to enter a reformatory school, compulsory education center, or compulsory rehabilitation center;- Being detained; serving a prison sentence;- Emigrating abroad; going to work abroad under a contract;- Dying.

According to Circular 28/2015/TT-BLDTBXH, the level and duration of unemployment benefits are stipulated as follows:

The maximum monthly unemployment benefit for employees:

- Not exceeding 05 times the statutory pay rate for employees subject to State-regulated wage policies; or- not exceeding 05 times the regional minimum wage as stipulated by the Labor Code for employees contributing to unemployment insurance under employer-determined wage policies at the time of labor contract termination.

The duration of unemployment benefits is calculated based on the number of calendar months of UI contributions, with 03 months of unemployment benefits granted for every 12 to 36 months of contributions. After that, an additional month of benefits is granted for every subsequent 12 months of contributions.

The commencement of unemployment benefits is calculated from the 16th day after the complete submission of the unemployment benefits application.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE