Unemployment Benefits: 05 Important Notes to Remember to Avoid Losses

1. Unemployment benefits when contributing to social insurance for 12 months

Employees currently paying unemployment insurance (UI) are entitled to unemployment benefits (UB) when they meet the following 04 conditions:

- Termination of the labor contract (LC) or working contract, except in cases where the employee (EE) unilaterally terminates (LC), working contract illegally or leaves to receive retirement pension, monthly labor incapacitation allowance.

- Have paid UI:

- For at least 12 months during the 24 months before terminating LC or working contract for indefinite terms, LC, or fixed-term contracts.- For at least 12 months during the 36 months before terminating LC for employees working under seasonal LC or a specific job contract with a duration from 03 months to less than 12 months.

- Submitted the application for UB at the employment service center within 03 months from the date of terminating LC or working contract;

- Have not found a job within 15 days, from the date of submitting the application for UB, except for the following cases:

- Performing military service, police duty;- Undergoing a long-term study program of at least 12 months;- Complying with a decision to apply measures to enter reformatory, compulsory education, or compulsory rehabilitation facility;- Being in custody; serving imprisonment;- Settling abroad; going to work abroad under a contract;- Deceased.

2. Entitled to a minimum of 03 months of benefits with a monthly allowance equal to 60% of the salary

The monthly UB amount is equal to 60% of the average monthly salary of the 06 months preceding unemployment. The maximum benefit does not exceed 05 times the statutory pay rate or 05 times the regional minimum wage.

The benefit period is calculated based on the number of months paying UI; for every 12 to 36 months of contribution, 03 months of UB will be provided, and for every additional 12 months of contribution, an extra month of UB will be provided but not exceeding 12 months.

3. Unclaimed UB is preserved and accumulated in UI contribution period

The UI contribution period for UB consideration is the total of the continuous or discontinuous months of UI contribution, accumulated from the start of UI contribution until the employee terminates the LC or working contract according to legal regulations without having received UB.

If the employee does not claim the UB, the UI contribution period will still be preserved for future UB entitlement.

4. Must have social insurance book and termination decision when applying for UB

The application for UB includes:

- An application form for UB as prescribed by the Minister of Labor - Invalids and Social Affairs.

- The original or a certified copy of one of the following documents confirming the termination of the labor contract or working contract:

- Expired labor contract or working contract or completed work under the labor contract;- Termination decision;- Dismissal decision;- Disciplinary decision for forced termination;- Notification or agreement on termination of the labor contract or working contract.

- Social insurance book

5. UB is paid within 5 working days from the date of receiving the UB decision

Within 20 days from the date the employment service center receives the complete application, the competent state authority issues a decision to grant UB; in case of ineligibility for UB, a written response must be given to the employee.

The social insurance organization will pay UB to the employee within 05 days from the date of receiving the UB decision.

Legal basis

- Employment Law 2013;- Decree 28/2015/ND-CP;- Circular 28/2015/TT-BLDTBXH.

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