The monthly unemployment allowance level in Vietnam equals 60% of the average monthly wage of 6 consecutive months before the worker becomes unemployed on which unemployment insurance premiums are based.
Article table of contents
Instruction on calculating monthly unemployment benefit in Vietnam 2023
According to the provisions of Article 50 of the Employment Law 2013, the monthly unemployment allowance level in Vietnam equals 60% of the average monthly wage of 6 consecutive months before the worker becomes unemployed on which unemployment insurance premiums are based, but:
- Must not exceed 5 times the basic wage level, for workers receiving wages under the State-prescribed regime,
- Must not exceed 5 times the region-based minimum wage level under the Labor Code, for workers who pay unemployment insurance premiums under the wage regime decided by employers at the time of termination of the labor contract or working contract.
The monthly unemployment benefit received by employees shall equal:
Monthly unemployment benefit = Average salary of 6 consecutive months over which the unemployment insurance premiums are paid before unemployment x 60%
Instruction on calculating monthly unemployment benefit in Vietnam 2023 (Internet image)
- In the last months before unemployment, if there is a period over which the payment for unemployment insurance premiums are paid (hereinafter referred to as payment period) that is interrupted, the 6-month payment period does not need to be continuous.
Example: Ms. Nguyen Thi A entered into a 24-month labor contract with E primary school with the monthly salary as follows: VND 2 million from September 1, 2013 to August 31, 2014 and VND 4 million from September 1, 2014 to August 31, 2015.
However, from January 1, 2015 to June 30, 2015, Ms. A took maternity leave. Subsequently, due to family circumstances, Ms. A failed to keep performing the labor contract.
Therefore, Ms. A submitted a letter of resignation as prescribed in law on labors and the E primary school issued a decision on acceptance for the resignation of Ms. A, which comes into force from the day on which it is signed, on July 1, 2015.
Consequently, the salary amount on which the unemployment benefit premiums are paid is the average 6-month salary over the payment period before resignation (July, August, September, October, November, and December of 2014).
Her monthly unemployment benefit equals (VND 2 million x 2 months + VND 4 million x 4 months)/6 x 60% = VND 2 million.
- The maximum monthly unemployment benefit to which the employee is eligible does not exceed 5-month base salary applicable to employees receiving salaries as prescribed by the State or does not exceed 5-month regional minimum wage as prescribed in the Labor Code applicable to employees receiving salaries decided by the employers at the time of labor contract termination.
Example: On October 1, 2015, Mr. Trinh Xuan C concluded a 12-month labor contract with enterprise F with the monthly salary level of VND 70 million. The enterprise F operates in the region I which applies the monthly regional minimum wage of VND 3.1 million as prescribed by the Government. Therefore, the monthly salary on which the unemployment insurance is paid is: 20 x VND 3.1 million = VND 62 million.
On September 28, 2015, Mr. C agreed to terminate the labor contract with the enterprise F and concluded a 3-month labor contract with enterprise G (from October 1, 2015 to December 31, 2015) with the monthly salary of VND 80 million. The enterprise G has the headquarter operated in the region IV which applies the monthly regional minimum wage of VND 2.15 million as prescribed by the Government. However, Mr. C did not work at the headquarter but work a branch that operates in region III and applies the monthly regional minimum wage of VND 2.4 million as prescribed by the Government.
Thus, Mr. C bought and paid unemployment insurance premiums at the social security agency where the branch operates according to the monthly salary amount of: 20 x VND 2.4 million = VND 48 million.
When the labor contract with the enterprise G expired, Mr. C applied for unemployment benefit.
Therefore, 60% of average salary of 6 consecutive months before the labor contract termination equals (VND 62 million x 3 months + VND 48 million x 3 months)/6 x 60% = VND 33 million.
However, Mr. C may not receive the unemployment benefit which exceeds 5-month regional minimum wage as prescribed at the time of labor contract’ termination. Therefore, the monthly unemployment benefit to which Mr. C is eligible is VND 12 million (VND 2.4 x 5 = VND 12 million).
