Period of payment of unemployment insurance premiums under latest regulations in Vietnam

Period of payment of unemployment insurance premiums under latest regulations in Vietnam (Internet image) 

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

1. Period of payment of unemployment insurance premiums under latest regulations in Vietnam

The unemployment insurance payment period according to Article 45 of the Law on Employment 2013 is as follows:

- The period of payment of unemployment insurance premiums for receipt of unemployment insurance benefits is the total of consecutive or interrupted periods of payment of unemployment insurance premiums from the starting time of such payment to the time the worker terminates his/her labor contract or working contract under law but during which he/she has not yet received any unemployment allowance.

- After a worker stops receiving unemployment allowance, his/her previous period of payment of unemployment insurance premiums is not counted for receiving unemployment allowance for the subsequent time. The period of payment of unemployment insurance premiums for the subsequent receipt of unemployment insurance benefits will be counted from the beginning, except the case of stopping receiving unemployment allowance under Points b, c, h, l, m and n, Clause 3, Article 53 of the Law on Employment 2013.

+ He/she has found a job;

+ He/she performs the military or public security service obligation;

+ He/she attends a training course of full 12 months or longer;

+ He/she is declared by a court as missing;

+ He/she is kept in temporary detention or serves a prison sentence.

- The period of payment of unemployment insurance premiums is not counted for receiving job loss allowance or severance pay under the laws on labor and public employees.

2. Compulsory participants in unemployment insurance in Vietnam

Compulsory participants in unemployment insurance according to Article 43 of the Law on Employment 2013 are as follows:

- Workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:

+ Labor contracts or working contracts of indefinite time;

+ Labor contracts or working contracts of definite time;

+ Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.

In case a worker has signed and is performing more than one labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.

- Workers defined in Clause 1 of Article 43 of the Law on Employment 2013 who are currently on pension or doing housework are not required to participate in unemployment insurance.

- Employers obliged to participate in unemployment insurance include state agencies, public non-business units and people’s armed forces units; political organizations, socio-political organizations, socio-political-professional organizations, social organizations and socio-professional organizations; foreign agencies and organizations and international organizations operating in the Vietnamese territory; enterprises, cooperatives, households, business households, cooperative groups, other organizations and individuals that hire or employ workers under the labor contracts or working contracts specified in Clause 1 of Article 43 of the Law on Employment 2013.

3. Principles of unemployment insurance in Vietnam

Principles of unemployment insurance in Vietnam according to Article 41 of the Law on Employment 2013 are as follows:

- Ensuring risk sharing among unemployment insurance participants.

- The levels of payable unemployment insurance premiums are based on wages of workers.

- The levels of unemployment insurance benefits are based on the levels and duration of payment of unemployment insurance premiums.

- Unemployment insurance is implemented in a simple, easy and convenient manner, promptly and adequately ensuring the interests of unemployment insurance participants.

- The Unemployment Insurance Fund is managed in a centralized, uniform, public, transparent and safe manner and protected by the State.

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