Unemployment benefit in Vietnam: Regulations that employees need to know about

Unemployment benefit in Vietnam: Regulations that employees need to know about (Illustration)

1. Subjects, payment rates and duration of unemployment insurance benefits in Vietnam

Subjects paying unemployment insurance

Article 43 of the Law on Employment 2013 stipulates that the subjects participating in unemployment insurance include employees working under employment contracts. If the employee enters into and performs multiple employment contracts, the first employment contract signed by both the employer and the employee is responsible for participation in unemployment insurance.

Note: Employees who are receiving pensions and helping their families according to the above provisions (Clause 1, Article 43 of the Law on Employment 2013) are not required to participate in unemployment insurance.

Unemployment insurance premiums

In principle, the unemployment insurance premium is calculated on the basis of the employee's salary (Clause 2, Article 41 of the Law on Employment). Clause 1, Article 57 of the Law on Employment stipulates the payment rates and responsibilities for paying unemployment insurance premiums as follows:

-Employees pay 1% of their monthly salary;

-Employers pay 1% of the monthly salary fund of employees participating in unemployment insurance.

The state shall support up to 1% of the monthly salary fund on which unemployment insurance premiums are based for employees participating in unemployment insurance and guaranteed by the central budget.

Unemployment benefits

Accordingly, with the above premium payment, the employee is entitled to a monthly allowance equal to 60% of the average monthly salary on which unemployment insurance premiums are based for the six preceding months before becoming unemployed as prescribed.

We have the following formula:

Monthly unemployment benefits = average salary for the previous six months with UI payments x 60%

For example: if Ms. Y has a monthly salary of VND 8,000,000, then the average salary for the 06 months before leaving is 8,000,000 VND and the monthly unemployment allowance for Ms. Y is 4,800,000 VND.

However, it should be noted that the maximum benefit level is not more than 05 times the base salary for employees subject to the salary regime prescribed by the state or not more than 05 times the regional minimum wage as prescribed by the Labor Code for employees paying unemployment insurance premiums according to the salary regime decided by the employer at the time of termination of the employment contract or work contract (Clause 2, Article 50 of the Law on Employment 2013).

Period and time of receiving unemployment benefits.

The time is calculated according to the number of months of UI payment. For every full 12 months to full 36 months, you will be entitled to 03 months of unemployment benefits. After that, for every additional 12 months, you will be entitled to just one more month of unemployment allowance at most. Not more than 12 months.

The time to enjoy unemployment benefits is counted from the 16th day from the date of the submission of complete dossiers as prescribed in Clause 1, Article 46 of the Law on Employment 2013.

2. Conditions for enjoying unemployment insurance benefits in Vietnam

Employees working under employment contracts who are paying unemployment insurance premiums are entitled to an unemployment allowance when fully meeting the following conditions:

(1) Termination of the employment contract (unless the employee illegally unilaterally terminates the employment contract or receives a monthly pension or loss of working capacity).

The termination of a employment contract specified in the Labor Code 2019 includes cases such as: expiration of the employment contract; having completed the work under the contract; the two parties agree to terminate the contract;... and other cases specified in Article 34 of the Labor Code 2019.

(2) Having paid unemployment insurance for a full 12 months or more during the 24 months preceding the employment contract's termination.

3) Having submitted an application for unemployment benefits at the employment service center;

(4) Having not found a job after 15 days from the date of submitting the application for unemployment insurance, except for the following cases:

- Performing military service and police duty;

-  Studying for a term of a full 12 months or more;

- Abiding by the decision to apply the measure of sending to reformatories, compulsory education establishments, and compulsory detoxification establishments.

- Being detained; serving a prison sentence

- Going abroad to settle down; going to work abroad under contract.

- Death.

Thus, in order to receive unemployment benefits, employees must be subject to paying and receiving unemployment insurance benefits. At the same time, the employee must also meet all the conditions for termination of the employment contract. The minimum period of insurance payment is 12 months. If you have submitted your application for benefits and ensured that you have not been able to find a new job for 15 days, you will be entitled to unemployment benefits in accordance with the law in Vietnam.

Thuy Trong

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