What is unemployment insurance? Compulsory participants in unemployment insurance in Vietnam

What is unemployment insurance? Compulsory participants in unemployment insurance in Vietnam (Internet image)

1. What is unemployment insurance?

According to Clause 4, Article 3 of the Law on Employment 2013, unemployment insurance means a scheme aiming to compensate part of income of a worker when he/she becomes unemployed, support him/her to receive vocational training, maintain employment, or seek employment, on the basis of making contributions to the Unemployment Insurance Fund.

2. Compulsory participants in unemployment insurance in Vietnam

Compulsory participants in unemployment insurance include:

- 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.

(Article 43 of the Law on Employment 2013)

3. Unemployment insurance benefits in Vietnam

Unemployment insurance benefits include:

- Unemployment allowance.

- Job counseling and recommendation support.

- Vocational training support.

- Support for training and retraining to improve qualifications of occupational skills for job maintenance for workers.

(Article 42 of the Law on Employment 2013)

4. Principles of unemployment insurance in Vietnam

The principles of unemployment insurance are specified in Article 41 of the Law on Employment 2013 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.

5. Participation in unemployment insurance in Vietnam

- Employers shall pay unemployment insurance premiums for workers to social insurance organizations within 30 days from the effective date of labor contracts or working contracts.

- Monthly, employers shall pay unemployment insurance premiums at the level specified at Point b, Clause 1, Article 57 of the Law on Employment 2013 and make deductions from the wages of workers at the level specified at Point a, Clause 1, Article 57 of the Law on Employment 2013, for simultaneous payment to the Unemployment Insurance Fund.

- Based on the balance of the Unemployment Insurance Fund, the State shall transfer supporting funds from the state budget to the Fund at the level specified by the Government under Clause 3, Article 59 of the Law on Employment 2013.

(Article 44 of the Law on Employment 2013)

Nguyen Thi Diem My

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