New Regulations on the Calculation of Severance and Job-loss Allowances

Decree 148 stipulates that the working time calculated for severance pay and job loss allowance is the total actual working time that the employee has worked for the employer, deducted by the period the employee has participated in unemployment insurance according to legal regulations and the period the employee has been paid severance and job loss allowance by the employer previously (if any). Specifically:

- The actual working time that the employee has worked for the employer includes:

- The actual time the employee has worked for the employer under the labor contract;- The time the employee is sent to study by the employer; the time off due to sickness and maternity benefits according to social insurance laws;- The time off for treatment, recovering labor functions when injured on the job or due to occupational disease for which the employer has paid salary according to labor safety and hygiene laws;- Weekly leave, paid leave as per regulations;- The time off for union activities according to union law regulations;- The time off to fulfill civic duties as per the law for which the employer has paid the salary;- The time of work suspension and unpaid leave not due to the employee's fault; the time of temporary job suspension;

- The time the employee has participated in unemployment insurance includes:

- The time the employer has paid for unemployment insurance,- The time calculated as unemployment insurance payment according to unemployment insurance laws,- The time the employer has paid concurrently with the employee's salary a sum equivalent to the unemployment insurance contribution as per labor and unemployment insurance laws;

- The working time for calculating severance pay and job loss allowance of the employee is calculated by year (full 12 months); if there are odd months, from full 01 month to less than 06 months, it is calculated as 1/2 year; from full 06 months or more, it is calculated as 01 year of work.

See details in Decree 148/2018/ND-CP effective from December 15, 2018

-Thao Uyen-

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